Post Utme Caleb University 2020 Accounting Question 26

Practice objective / multiple choice question 26 from the 2020 Post Utme Caleb University Accounting examination.

Post Utme Caleb University 2020 Accounting Objective / Multiple Choice
Question 26 POST_UTME_CALEB_UNIVERSITY • 2020 • ACCOUNTING • objective

A company prepares a trial balance on December 31, 2022. The trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accountant notes that the rent received during the year was ₦20,000. What is the correct journal entry to record the difference?

Answer Options

A. Debit Rent Received ₦5,000, Credit Rent Received in Advance ₦5,000
B. Debit Rent Received ₦5,000, Credit Rent Expense ₦5,000
C. Debit Rent Received ₦5,000, Credit Cash ₦5,000
Correct Answer D. Debit Rent Received in Advance ₦5,000, Credit Rent Received ₦5,000
Correct Answer
D
Correct Option:
Debit Rent Received in Advance ₦5,000, Credit Rent Received ₦5,000

About This Question

This is Post Utme Caleb University 2020 Accounting Question 26. It is one of the objective questions from the 2020 Post Utme Caleb University Accounting examination.

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