Post Utme Bowen University 2019 Accounting Question 3

Practice objective / multiple choice question 3 from the 2019 Post Utme Bowen University Accounting examination.

Post Utme Bowen University 2019 Accounting Objective / Multiple Choice
Question 3 POST_UTME_BOWEN_UNIVERSITY • 2019 • ACCOUNTING • objective

A company uses the double-entry system to record its transactions. The company's trial balance shows a debit balance of ₦3,000 in the account 'Depreciation Expense' and a credit balance of ₦2,500 in the account 'Accumulated Depreciation'. 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 Depreciation Expense and ₦500 credit to Accumulated Depreciation
B. ₦500 debit to Accumulated Depreciation and ₦500 credit to Depreciation Expense
C. ₦500 debit to Depreciation Expense and ₦500 credit to Cash
D. ₦500 debit to Accumulated Depreciation and ₦500 credit to Cash
Correct Answer
A
Correct Option:
₦500 debit to Depreciation Expense and ₦500 credit to Accumulated Depreciation

About This Question

This is Post Utme Bowen University 2019 Accounting Question 3. It is one of the objective questions from the 2019 Post Utme Bowen University Accounting examination.

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