Post Utme Bowen University 2018 Accounting Question 25

Practice objective / multiple choice question 25 from the 2018 Post Utme Bowen University Accounting examination.

Post Utme Bowen University 2018 Accounting Objective / Multiple Choice
Question 25 POST_UTME_BOWEN_UNIVERSITY • 2018 • ACCOUNTING • objective

A company uses the self-balancing ledger system. On January 1, 2020, it had the following ledger accounts: Cash (₦100,000), Accounts Payable (₦50,000), and Common Stock (₦200,000). Prepare the journal entries for the following transactions: (1) Purchased office supplies for ₦20,000, (2) Sold merchandise for ₦30,000, and (3) Issued common stock for ₦50,000.

Answer Options

Correct Answer A. (1) Debit Office Supplies: ₦20,000, Credit Cash: ₦20,000; (2) Debit Sales: ₦30,000, Credit Accounts Receivable: ₦30,000; (3) Debit Cash: ₦50,000, Credit Common Stock: ₦50,000
B. (1) Debit Office Supplies: ₦20,000, Credit Cash: ₦20,000; (2) Debit Accounts Receivable: ₦30,000, Credit Sales: ₦30,000; (3) Debit Common Stock: ₦50,000, Credit Cash: ₦50,000
C. (1) Debit Cash: ₦20,000, Credit Office Supplies: ₦20,000; (2) Debit Sales: ₦30,000, Credit Accounts Receivable: ₦30,000; (3) Debit Cash: ₦50,000, Credit Common Stock: ₦50,000
D. (1) Debit Office Supplies: ₦20,000, Credit Cash: ₦20,000; (2) Debit Accounts Receivable: ₦30,000, Credit Sales: ₦30,000; (3) Debit Common Stock: ₦50,000, Credit Cash: ₦50,000
Correct Answer
A
Correct Option:
(1) Debit Office Supplies: ₦20,000, Credit Cash: ₦20,000; (2) Debit Sales: ₦30,000, Credit Accounts Receivable: ₦30,000; (3) Debit Cash: ₦50,000, Credit Common Stock: ₦50,000

About This Question

This is Post Utme Bowen University 2018 Accounting Question 25. It is one of the objective questions from the 2018 Post Utme Bowen University Accounting examination.

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