Post Utme Al Hikmah University 2021 Accounting Question 34

Practice objective / multiple choice question 34 from the 2021 Post Utme Al Hikmah University Accounting examination.

Post Utme Al Hikmah University 2021 Accounting Objective / Multiple Choice
Question 34 POST_UTME_AL-HIKMAH_UNIVERSITY • 2021 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦50,000 in the 'Rent Expense' account. However, the company's accounting records indicate that the actual rent paid for the year was ₦75,000. What is the correct journal entry to record the adjustment?

Answer Options

A. ₦25,000 debit to Rent Expense and ₦25,000 credit to Cash
Correct Answer B. ₦75,000 debit to Rent Expense and ₦75,000 credit to Cash
C. ₦25,000 debit to Rent Expense and ₦50,000 credit to Cash
D. ₦50,000 debit to Rent Expense and ₦25,000 credit to Cash
Correct Answer
B
Correct Option:
₦75,000 debit to Rent Expense and ₦75,000 credit to Cash

About This Question

This is Post Utme Al Hikmah University 2021 Accounting Question 34. It is one of the objective questions from the 2021 Post Utme Al Hikmah University Accounting examination.

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