Customer account with N20,000 crediting discount allowed with N20,000
Discount allowed with N10,000; crediting customer's account with N10,000
Customer's account with N10,000, crediting discount allowed with N10,000
Discount allowed with N20,000, crediting cash with N20,000
Correct answer is C
This means the discount allowed was in surplus of N10,000. The discount allowed is an expense of the seller and it is recorded on the debit side of the seller's book. To correct this error, we will enter a corresponding N10,000 amount on the credit side of the book to cancel the excess amount.
₦9,000
₦2,500
₦3,000
₦1,500
Correct answer is B
\(\begin{array}{c|c} \text{Sales} & & 9000 \\ \hline \text{Stock Jan 1} & 2000 & \\ \hline \text{Purchases} & 4000 & \\ \hline \text{Carriage inwards} & 500 & 6500 \\ \hline \text{Gross profit} & & 2500 \end{array}\)
A credit purchase of N200 from P. Osae was posted to the account of P. Osei. This is an error of
Principle
Commission
Omission
Original entry
Correct answer is B
No explanation has been provided for this answer.
A suspense account is used in the
Prevention of errors
Correction of errors
Detection of errors
Creation of errors
Correct answer is B
No explanation has been provided for this answer.
If a petty cashier has a cash float of Le 39,000 and Le 37,500 is spent, he will be reimbursed with
Le 40,500
Le 39,000
Le 37,500
Le 1,500
Correct answer is C
No explanation has been provided for this answer.