Post Utme Abu 2021 Accounting Question 32

Practice objective / multiple choice question 32 from the 2021 Post Utme Abu Accounting examination.

Post Utme Abu 2021 Accounting Objective / Multiple Choice
Question 32 POST_UTME_ABU • 2021 • ACCOUNTING • objective

A company's trial balance shows a credit balance of ₦20,000 in the account 'Dividends Paid'. However, the company's accounting records show that it has not paid any dividends. What is the correct treatment of this account?

Answer Options

A. Debit the account 'Dividends Paid' by ₦20,000
B. Credit the account 'Dividends Paid' by ₦20,000
C. Debit the account 'Dividends Paid' by ₦20,000 and credit the account 'Retained Earnings' by ₦20,000
Correct Answer D. Credit the account 'Dividends Paid' by ₦20,000 and debit the account 'Retained Earnings' by ₦20,000
Correct Answer
D
Correct Option:
Credit the account 'Dividends Paid' by ₦20,000 and debit the account 'Retained Earnings' by ₦20,000

About This Question

This is Post Utme Abu 2021 Accounting Question 32. It is one of the objective questions from the 2021 Post Utme Abu Accounting examination.

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