Post Utme Babcock University 2018 Accounting Question 29

Practice objective / multiple choice question 29 from the 2018 Post Utme Babcock University Accounting examination.

Post Utme Babcock University 2018 Accounting Objective / Multiple Choice
Question 29 POST_UTME_BABCOCK_UNIVERSITY • 2018 • ACCOUNTING • objective

A company's trial balance shows a credit balance in the 'Dividends' account of ₦50,000. However, the company's accounting records show that the actual dividends paid during the year were ₦30,000. What is the correct journal entry to correct the error?

Answer Options

A. Debit 'Dividends' account by ₦20,000 and credit 'Profit and Loss' account by ₦20,000
Correct Answer B. Debit 'Profit and Loss' account by ₦20,000 and credit 'Dividends' account by ₦20,000
C. Debit 'Dividends' account by ₦20,000 and credit 'Cash' account by ₦20,000
D. Debit 'Cash' account by ₦20,000 and credit 'Dividends' account by ₦20,000
Correct Answer
B
Correct Option:
Debit 'Profit and Loss' account by ₦20,000 and credit 'Dividends' account by ₦20,000

About This Question

This is Post Utme Babcock University 2018 Accounting Question 29. It is one of the objective questions from the 2018 Post Utme Babcock University Accounting examination.

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