Post Utme Achievers University 2022 Accounting Question 36

Practice objective / multiple choice question 36 from the 2022 Post Utme Achievers University Accounting examination.

Post Utme Achievers University 2022 Accounting Objective / Multiple Choice
Question 36 POST_UTME_ACHIEVERS_UNIVERSITY • 2022 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The company's ledger contains the following accounts: Cash, Accounts Payable, Sales Revenue, and Cost of Goods Sold. The company's trial balance shows a debit balance of ₦50,000 in the Cash account and a credit balance of ₦30,000 in the Accounts Payable account. What is the correct journal entry to record the purchase of goods worth ₦20,000 on credit from a supplier?

Answer Options

A. Debit Cash ₦20,000, Credit Accounts Payable ₦20,000
B. Debit Cost of Goods Sold ₦20,000, Credit Accounts Payable ₦20,000
Correct Answer C. Debit Accounts Payable ₦20,000, Credit Cost of Goods Sold ₦20,000
D. Debit Cash ₦20,000, Credit Cost of Goods Sold ₦20,000
Correct Answer
C
Correct Option:
Debit Accounts Payable ₦20,000, Credit Cost of Goods Sold ₦20,000

About This Question

This is Post Utme Achievers University 2022 Accounting Question 36. It is one of the objective questions from the 2022 Post Utme Achievers University Accounting examination.

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