Post Utme Babcock University 2020 Accounting Question 6

Practice objective / multiple choice question 6 from the 2020 Post Utme Babcock University Accounting examination.

Post Utme Babcock University 2020 Accounting Objective / Multiple Choice
Question 6 POST_UTME_BABCOCK_UNIVERSITY • 2020 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received' while the corresponding credit balance in the account 'Rent Paid' is ₦1,200. What is the correct journal entry to rectify this error?

Answer Options

A. Debit Rent Paid ₦300, Credit Rent Received ₦300
Correct Answer B. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Debit Profit and Loss ₦300
C. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Credit Profit and Loss ₦300
D. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Debit Rent Received ₦300
Correct Answer
B
Correct Option:
Debit Rent Paid ₦300, Credit Rent Received ₦300 and Debit Profit and Loss ₦300

About This Question

This is Post Utme Babcock University 2020 Accounting Question 6. It is one of the objective questions from the 2020 Post Utme Babcock University Accounting examination.

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