NECO Accounting 2023 Objective — Question 34

Question 34 of 50 from the National Examinations Council (NECO) Accounting 2023 Objective paper, with the correct answer and a full explanation.

The transactions of All Girls' Social Club for the year 2021 are: Bar sales D30,000; Bar purchases D17,000; Rent D1,200. Stock at bar: 31/12/2020 D1,400, 31/12/2021 D1,600. Owing for bar supplies: 31/12/2020 D6,500, 31/12/2021 D7,300. The value of purchases for the year is (a) D17,800 (b) D17,000 (c) D16,800 (d) D16,200

A. D17,800Correct
B. D17,000
C. D16,800
D. D16,200

Explanation

Purchases for the year = Bar purchases + Increase in creditors for supplies (7,300 - 6,500) = 17,000 + 800 = D17,800.

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