Post Utme Caleb University 2021 Accounting Question 21

Practice objective / multiple choice question 21 from the 2021 Post Utme Caleb University Accounting examination.

Post Utme Caleb University 2021 Accounting Objective / Multiple Choice
Question 21 POST_UTME_CALEB_UNIVERSITY • 2021 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from tenants. What is the correct journal entry to correct the error?

Answer Options

A. ₦15,000 debit to Rent Received and ₦15,000 credit to Cash
Correct Answer B. ₦15,000 debit to Cash and ₦15,000 credit to Rent Received
C. ₦15,000 debit to Rent Received and ₦15,000 credit to Profit or Loss on Disposal of Assets
D. ₦15,000 debit to Profit or Loss on Disposal of Assets and ₦15,000 credit to Rent Received
Correct Answer
B
Correct Option:
₦15,000 debit to Cash and ₦15,000 credit to Rent Received

About This Question

This is Post Utme Caleb University 2021 Accounting Question 21. It is one of the objective questions from the 2021 Post Utme Caleb University Accounting examination.

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