Post Utme Abu 2024 Accounting Question 22

Practice objective / multiple choice question 22 from the 2024 Post Utme Abu Accounting examination.

Post Utme Abu 2024 Accounting Objective / Multiple Choice
Question 22 POST_UTME_ABU • 2024 • ACCOUNTING • objective

A company's balance sheet shows a current liability of ₦50,000 due to a bank loan. However, the company's accounting records show that it has paid ₦20,000 towards the loan. What is the correct journal entry to record the payment?

Answer Options

Correct Answer A. Debit Cash ₦20,000, Credit Bank Loan ₦20,000
B. Debit Cash ₦20,000, Credit Bank Loan ₦30,000
C. Debit Bank Loan ₦20,000, Credit Cash ₦20,000
D. Debit Bank Loan ₦30,000, Credit Cash ₦20,000
Correct Answer
A
Correct Option:
Debit Cash ₦20,000, Credit Bank Loan ₦20,000

About This Question

This is Post Utme Abu 2024 Accounting Question 22. It is one of the objective questions from the 2024 Post Utme Abu Accounting examination.

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