Post Utme Babcock University 2022 Accounting Question 12

Practice objective / multiple choice question 12 from the 2022 Post Utme Babcock University Accounting examination.

Post Utme Babcock University 2022 Accounting Objective / Multiple Choice
Question 12 POST_UTME_BABCOCK_UNIVERSITY • 2022 • ACCOUNTING • objective

A company's trial balance shows the following balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦100,000. What is the correct journal entry to record the closing of the accounts?

Answer Options

A. ₦500,000 debit to Sales Revenue and ₦500,000 credit to Retained Earnings
B. ₦300,000 debit to Cost of Goods Sold and ₦300,000 credit to Retained Earnings
C. ₦150,000 debit to Accounts Payable and ₦150,000 credit to Retained Earnings
Correct Answer D. ₦100,000 debit to Net Income and ₦100,000 credit to Retained Earnings
Correct Answer
D
Correct Option:
₦100,000 debit to Net Income and ₦100,000 credit to Retained Earnings

About This Question

This is Post Utme Babcock University 2022 Accounting Question 12. It is one of the objective questions from the 2022 Post Utme Babcock University Accounting examination.

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