Post Utme Bells University 2022 Accounting Question 25

Practice objective / multiple choice question 25 from the 2022 Post Utme Bells University Accounting examination.

Post Utme Bells University 2022 Accounting Objective / Multiple Choice
Question 25 POST_UTME_BELLS_UNIVERSITY • 2022 • ACCOUNTING • objective

A company's balance sheet shows a current liability of ₦40,000 in the 'Accounts Payable' account. However, the company's trial balance shows a debit balance of ₦20,000 in the 'Accounts Payable' account. What is the correct treatment for this discrepancy?

Answer Options

Correct Answer A. Debit the 'Accounts Payable' account by ₦40,000 and credit the 'Cash' account by ₦40,000.
B. Debit the 'Accounts Payable' account by ₦20,000 and credit the 'Cash' account by ₦20,000.
C. Debit the 'Accounts Payable' account by ₦40,000 and credit the 'Accounts Receivable' account by ₦40,000.
D. Debit the 'Accounts Payable' account by ₦20,000 and credit the 'Accounts Receivable' account by ₦20,000.
Correct Answer
A
Correct Option:
Debit the 'Accounts Payable' account by ₦40,000 and credit the 'Cash' account by ₦40,000.

About This Question

This is Post Utme Bells University 2022 Accounting Question 25. It is one of the objective questions from the 2022 Post Utme Bells University Accounting examination.

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