Post Utme Bowen University 2020 Accounting Question 18

Practice objective / multiple choice question 18 from the 2020 Post Utme Bowen University Accounting examination.

Post Utme Bowen University 2020 Accounting Objective / Multiple Choice
Question 18 POST_UTME_BOWEN_UNIVERSITY • 2020 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦50,000 in the account 'Rent Received'. However, the company's accounting records show that the rent was actually paid to the landlord. What is the correct treatment for this error?

Answer Options

A. Debit the 'Rent Received' account and credit the 'Rent Paid' account.
Correct Answer B. Debit the 'Rent Paid' account and credit the 'Rent Received' account.
C. Debit the 'Rent Received' account and credit the 'Rent Paid' account.
D. Do nothing, as the trial balance is correct.
Correct Answer
B
Correct Option:
Debit the 'Rent Paid' account and credit the 'Rent Received' account.

About This Question

This is Post Utme Bowen University 2020 Accounting Question 18. It is one of the objective questions from the 2020 Post Utme Bowen University Accounting examination.

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