Post Utme Bowen University 2021 Accounting Question 38

Practice objective / multiple choice question 38 from the 2021 Post Utme Bowen University Accounting examination.

Post Utme Bowen University 2021 Accounting Objective / Multiple Choice
Question 38 POST_UTME_BOWEN_UNIVERSITY • 2021 • ACCOUNTING • objective

A company uses the single entry system to record its transactions. The company's trial balance at the end of the year shows the following balances: ₦100,000 in the cash account and ₦50,000 in the accounts payable account. The company also has a ₦20,000 loan from a bank that is due for repayment at the end of the year. Prepare the company's balance sheet at the end of the year, assuming that the company uses the double entry system.

Answer Options

Correct Answer A. ₦100,000 in cash, ₦50,000 in accounts payable, ₦20,000 in loan payable
B. ₦100,000 in cash, ₦50,000 in accounts payable, ₦20,000 in bank loan
C. ₦100,000 in cash, ₦50,000 in accounts payable, ₦20,000 in loan due
D. ₦100,000 in cash, ₦50,000 in accounts payable, ₦20,000 in bank overdraft
Correct Answer
A
Correct Option:
₦100,000 in cash, ₦50,000 in accounts payable, ₦20,000 in loan payable

About This Question

This is Post Utme Bowen University 2021 Accounting Question 38. It is one of the objective questions from the 2021 Post Utme Bowen University Accounting examination.

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