Post Utme Abu 2024 Accounting Question 40

Practice objective / multiple choice question 40 from the 2024 Post Utme Abu Accounting examination.

Post Utme Abu 2024 Accounting Objective / Multiple Choice
Question 40 POST_UTME_ABU • 2024 • ACCOUNTING • objective

A company uses the single-entry system of accounting. The company's cash account shows a balance of ₦150,000. The company's bank statement shows a balance of ₦120,000. The bank has charged a service fee of ₦2,000. What is the correct journal entry to record the bank reconciliation?

Answer Options

Correct Answer A. ₦2,000 debit to Cash and ₦2,000 credit to Bank Charges
B. ₦2,000 debit to Bank Charges and ₦2,000 credit to Cash
C. ₦2,000 debit to Bank Charges and ₦2,000 credit to Profit and Loss
D. ₦2,000 debit to Cash and ₦2,000 credit to Profit and Loss
Correct Answer
A
Correct Option:
₦2,000 debit to Cash and ₦2,000 credit to Bank Charges

About This Question

This is Post Utme Abu 2024 Accounting Question 40. It is one of the objective questions from the 2024 Post Utme Abu Accounting examination.

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