Neco Model Questions Vol1 2022 Financial Accounting Question 47
Practice objective / multiple choice question 47 from the 2022 Neco Model Questions Vol1 Financial Accounting examination.
A business purchased equipment on credit for ₦250,000. It paid cash ₦70,000 and issued a note payable for the balance. VAT at (5\%\) is charged on the cash portion only. In the journal entry, equipment should be recorded at cost exclusive of VAT, VAT receivable should be recognised, and the cash and note payable amounts should reflect the VAT treatment. What amount should be recorded in the Note Payable account?
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About This Question
This is Neco Model Questions Vol1 2022 Financial Accounting Question 47. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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