Neco Model Questions Vol1 2023 Financial Accounting Question 5
Practice objective / multiple choice question 5 from the 2023 Neco Model Questions Vol1 Financial Accounting examination.
The following transactions were recorded in the journal of ABC Ltd for March. The opening cash balance on 1\,March was N100,000. 1. 3 Mar - Purchased inventory on credit N150,000, terms 2/10, n/30. 2. 5 Mar - Sold goods for cash N200,000; cost of goods sold N120,000. 3. 10 Mar - Paid cash for utilities N8,000. 4. 12 Mar - Received cash from a customer for a previous credit sale N50,000, taking a 2 % discount. 5. 15 Mar - Paid cash for the inventory purchased on 3 Mar, within the discount period. 6. 20 Mar - Paid cash for salaries N30,000. 7. 25 Mar - Purchased equipment for cash N60,000. Prepare the cash book (showing total cash receipts and total cash payments) and determine the closing cash balance at 31 March.
Answer Options
About This Question
This is Neco Model Questions Vol1 2023 Financial Accounting Question 5. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.