Waec Model Questions Vol1 2017 Financial Accounting Question 3

Practice essay / theory question 3 from the 2017 Waec Model Questions Vol1 Financial Accounting examination. This question covers Books of Original Entry .

Waec Model Questions Vol1 2017 Financial Accounting Essay / Theory
Topic: Books of Original Entry
Question 3 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • FINANCIAL_ACCOUNTING • essay

Micheal’s Trading Ltd carried out the following transactions during the month of March: 1. 1 March – Purchased inventory on credit for ₦120,000. 2. 5 March – Made cash sales amounting to ₦85,000. 3. 10 March – Paid rent of ₦20,000 in cash. 4. 12 March – Returned defective goods to the supplier worth ₦15,000. 5. 15 March – The owner injected cash of ₦30,000 into the business. Using the above information, answer the questions that follow.

Question Parts

( a )
Record each of the above transactions in the General Journal. Show the date, account titles, debit and credit amounts, and a brief narration for each entry.
( b )
Explain the accounting principle that requires the purchase return to be recorded as a debit to Accounts Payable and a credit to Purchases Returns.
( c )
Calculate the total of the Debit column and the total of the Credit column of the journal you prepared in part (a). State whether the journal is balanced.

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About This Question

This is Waec Model Questions Vol1 2017 Financial Accounting Question 3. It is one of the essay questions from the 2017 Waec Model Questions Vol1 Financial Accounting examination.

The question covers Books of Original Entry .

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