EXCEL MINDS ACADEMIC GROUP, FACULTY OF MANAGEMENT SCIENCE

A business purchases equipment for ₦500,000, paying ₦300,000 in cash and the rest on credit. What is the correct double-entry?

• Debit Equipment ₦500,000; Credit Cash ₦300,000; Credit Payables ₦200,000

• Debit Cash ₦300,000; Credit Equipment ₦500,000

• Debit Equipment ₦300,000; Credit Payables ₦200,000

• Debit Cash ₦500,000; Credit Equipment ₦500,000

If sales of ₦120,000 are made, and customers pay ₦80,000 in cash while ₦40,000 remains outstanding, what are the entries?

• Debit Cash ₦120,000; Credit Sales ₦120,000

• Debit Sales ₦120,000; Credit Cash ₦80,000; Credit Receivables ₦40,000

• Debit Cash ₦80,000; Debit Receivables ₦40,000; Credit Sales ₦120,000

• Debit Receivables ₦120,000; Credit Cash ₦40,000

Which account is credited when the owner contributes capital in cash?

• Cash

• Bank

• Capital

• Drawings

A company pays ₦15,000 for rent and ₦5,000 for utilities. What is the total expense recorded in the income statement?

• ₦5,000

• ₦15,000

• ₦20,000

• ₦10,000

A customer returns goods worth ₦10,000 that were previously sold on credit. What is the correct entry?

• Debit Sales Return ₦10,000; Credit Receivables ₦10,000

• Debit Receivables ₦10,000; Credit Sales Return ₦10,000

• Debit Cash ₦10,000; Credit Sales Return ₦10,000

• Debit Receivables ₦10,000; Credit Sales ₦10,000

A bank reconciliation statement is prepared to:

• Reconcile the bank statement with the cash book

• Match sales ledger and purchases ledger

• Correct errors in the trial balance

• Prepare the statement of cash flows

If the cash book balance is ₦50,000, outstanding checks total ₦10,000, and uncredited deposits are ₦20,000, what is the adjusted bank balance?

• ₦40,000

• ₦70,000

• ₦60,000

• ₦80,000

.A bank statement shows a closing balance of ₦75,000. After reconciliation, the following are identified:

Bank charges not recorded: ₦5,000

A direct deposit of ₦10,000 not recorded

What is the adjusted cash book balance?

• ₦80,000

• ₦85,000

• ₦90,000

• ₦70,000

A dishonored check is:

• A check returned by the bank due to insufficient funds

• A check not yet presented for payment

• A check issued to a supplier

• A check that has been cleared by the bank

.A company’s bank reconciliation includes ₦12,000 for unpresented checks and ₦8,000 for outstanding deposits. If the cash book balance is ₦50,000, what is the bank statement balance?

• ₦46,000

• ₦54,000

• ₦70,000

• ₦50,000