Post Utme Afe Babalola University 2019 Accounting Question 1

Practice objective / multiple choice question 1 from the 2019 Post Utme Afe Babalola University Accounting examination.

Post Utme Afe Babalola University 2019 Accounting Objective / Multiple Choice
Question 1 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2019 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The following transactions occurred during the year: Purchased office equipment for ₦120,000, and paid ₦50,000 in cash. The remaining balance of ₦70,000 was financed by a loan from the bank. What is the correct journal entry for the purchase of office equipment?

Answer Options

Correct Answer A. Debit Office Equipment ₦120,000, Credit Cash ₦50,000, Credit Bank Loan ₦70,000
B. Debit Office Equipment ₦120,000, Credit Cash ₦70,000, Credit Bank Loan ₦50,000
C. Debit Office Equipment ₦120,000, Credit Cash ₦120,000
D. Debit Office Equipment ₦120,000, Credit Bank Loan ₦120,000
Correct Answer
A
Correct Option:
Debit Office Equipment ₦120,000, Credit Cash ₦50,000, Credit Bank Loan ₦70,000

About This Question

This is Post Utme Afe Babalola University 2019 Accounting Question 1. It is one of the objective questions from the 2019 Post Utme Afe Babalola University Accounting examination.

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