Post Utme Abu 2017 Accounting Question 40

Practice objective / multiple choice question 40 from the 2017 Post Utme Abu Accounting examination.

Post Utme Abu 2017 Accounting Objective / Multiple Choice
Question 40 POST_UTME_ABU • 2017 • ACCOUNTING • objective

A company's balance sheet as at 31st December, 2022 is as follows: Assets: Cash ₦10,000 Debtors ₦20,000 Stock ₦30,000 Equipment ₦40,000 Total ₦100,000 Liabilities: Creditors ₦10,000 Capital ₦90,000 Total ₦100,000 What is the correct treatment for the following error in the balance sheet? The equipment was incorrectly valued at ₦50,000 instead of ₦40,000.

Answer Options

Correct Answer A. Debit the equipment account by ₦10,000 and credit the capital account by ₦10,000
B. Debit the capital account by ₦10,000 and credit the equipment account by ₦10,000
C. Debit the creditors account by ₦10,000 and credit the equipment account by ₦10,000
D. Debit the equipment account by ₦10,000 and credit the creditors account by ₦10,000
Correct Answer
A
Correct Option:
Debit the equipment account by ₦10,000 and credit the capital account by ₦10,000

About This Question

This is Post Utme Abu 2017 Accounting Question 40. It is one of the objective questions from the 2017 Post Utme Abu Accounting examination.

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