Post Utme Bowen University 2019 Accounting Question 2

Practice objective / multiple choice question 2 from the 2019 Post Utme Bowen University Accounting examination.

Post Utme Bowen University 2019 Accounting Objective / Multiple Choice
Question 2 POST_UTME_BOWEN_UNIVERSITY • 2019 • ACCOUNTING • objective

A company uses the single-entry system to record its transactions. The company's ledger shows a debit balance of ₦2,000 in the account 'Rent Expense' and a credit balance of ₦1,500 in the account 'Cash'. What is the correct journal entry to record the adjustment for the difference between the two accounts?

Answer Options

Correct Answer A. ₦500 debit to Rent Expense and ₦500 credit to Cash
B. ₦500 debit to Cash and ₦500 credit to Rent Expense
C. ₦500 debit to Rent Expense and ₦500 credit to Accounts Payable
D. ₦500 debit to Cash and ₦500 credit to Accounts Payable
Correct Answer
A
Correct Option:
₦500 debit to Rent Expense and ₦500 credit to Cash

About This Question

This is Post Utme Bowen University 2019 Accounting Question 2. It is one of the objective questions from the 2019 Post Utme Bowen University Accounting examination.

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