Post Utme Achievers University 2018 Accounting Question 10

Practice objective / multiple choice question 10 from the 2018 Post Utme Achievers University Accounting examination.

Post Utme Achievers University 2018 Accounting Objective / Multiple Choice
Question 10 POST_UTME_ACHIEVERS_UNIVERSITY • 2018 • ACCOUNTING • objective

A company's balance sheet shows a current liability of ₦50,000. However, the company's accounting records show that it has paid ₦60,000 to settle the liability. Prepare the necessary journal entry to correct the discrepancy.

Answer Options

A. ₦60,000 debit to Current Liability, ₦10,000 credit to Cash
B. ₦50,000 credit to Current Liability, ₦60,000 debit to Cash
C. ₦60,000 credit to Current Liability, ₦10,000 debit to Cash
Correct Answer D. ₦50,000 debit to Current Liability, ₦60,000 credit to Cash
Correct Answer
D
Correct Option:
₦50,000 debit to Current Liability, ₦60,000 credit to Cash

About This Question

This is Post Utme Achievers University 2018 Accounting Question 10. It is one of the objective questions from the 2018 Post Utme Achievers University Accounting examination.

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