Neco Model Questions Vol1 2024 Financial Accounting Question 2

Practice objective / multiple choice question 2 from the 2024 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 2 NECO_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

The cash book of XYZ Ltd. shows an opening cash balance of \(120,000\). During the month the following cash transactions occurred: cash sales of \(250,000\); cash received from debtors of \(70,000\); cash purchases of \(80,000\); cash salaries paid of \(60,000\); and cash payments recorded as a total of \(210,000\). The amount paid for rent is not shown separately. Determine the amount paid for rent and the closing cash balance at the end of the month.

Answer Options

Correct Answer A. Rent paid = 70,000; Closing cash balance = 230,000
B. Rent paid = 60,000; Closing cash balance = 240,000
C. Rent paid = 80,000; Closing cash balance = 220,000
D. Rent paid = 50,000; Closing cash balance = 250,000
Correct Answer
A
Correct Option:
Rent paid = 70,000; Closing cash balance = 230,000

About This Question

This is Neco Model Questions Vol1 2024 Financial Accounting Question 2. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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