Post Utme Al Hikmah University 2025 Accounting Question 28

Practice objective / multiple choice question 28 from the 2025 Post Utme Al Hikmah University Accounting examination.

Post Utme Al Hikmah University 2025 Accounting Objective / Multiple Choice
Question 28 POST_UTME_AL-HIKMAH_UNIVERSITY • 2025 • ACCOUNTING • objective

A company's trial balance shows the following balances: Sales ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦100,000, Net Profit ₦50,000. What is the correct journal entry to record the closing of the profit and loss account?

Answer Options

Correct Answer A. Debit Profit and Loss Account ₦50,000, Credit Retained Earnings ₦50,000
B. Debit Profit and Loss Account ₦50,000, Credit Capital ₦50,000
C. Debit Profit and Loss Account ₦50,000, Credit Drawings ₦50,000
D. Debit Profit and Loss Account ₦50,000, Credit Dividends ₦50,000
Correct Answer
A
Correct Option:
Debit Profit and Loss Account ₦50,000, Credit Retained Earnings ₦50,000

About This Question

This is Post Utme Al Hikmah University 2025 Accounting Question 28. It is one of the objective questions from the 2025 Post Utme Al Hikmah University Accounting examination.

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