Post Utme Afe Babalola University 2025 Accounting Question 26

Practice objective / multiple choice question 26 from the 2025 Post Utme Afe Babalola University Accounting examination.

Post Utme Afe Babalola University 2025 Accounting Objective / Multiple Choice
Question 26 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2025 • ACCOUNTING • objective

A company uses the double-entry system to record transactions. If a customer pays ₦1,500 cash for a service, and the company owes the customer ₦500 as a refund, what is the journal entry to record this transaction?

Answer Options

Correct Answer A. Debit Cash ₦1,500, Credit Refund Liability ₦500
B. Debit Refund Liability ₦500, Credit Cash ₦1,500
C. Debit Cash ₦1,000, Credit Refund Liability ₦500
D. Debit Refund Liability ₦1,500, Credit Cash ₦500
Correct Answer
A
Correct Option:
Debit Cash ₦1,500, Credit Refund Liability ₦500

About This Question

This is Post Utme Afe Babalola University 2025 Accounting Question 26. It is one of the objective questions from the 2025 Post Utme Afe Babalola University Accounting examination.

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