Post Utme Abu 2024 Accounting Question 25

Practice objective / multiple choice question 25 from the 2024 Post Utme Abu Accounting examination.

Post Utme Abu 2024 Accounting Objective / Multiple Choice
Question 25 POST_UTME_ABU • 2024 • ACCOUNTING • objective

A company's balance sheet shows a non-current liability of ₦100,000 due to a long-term loan. However, the company's accounting records show that it has paid ₦50,000 towards the loan. What is the correct journal entry to record the payment?

Answer Options

Correct Answer A. Debit Cash ₦50,000, Credit Long-Term Loan ₦50,000
B. Debit Cash ₦50,000, Credit Long-Term Loan ₦100,000
C. Debit Long-Term Loan ₦50,000, Credit Cash ₦50,000
D. Debit Long-Term Loan ₦100,000, Credit Cash ₦50,000
Correct Answer
A
Correct Option:
Debit Cash ₦50,000, Credit Long-Term Loan ₦50,000

About This Question

This is Post Utme Abu 2024 Accounting Question 25. It is one of the objective questions from the 2024 Post Utme Abu Accounting examination.

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