Post Utme Christopher University 2018 Accounting Question 26

Practice objective / multiple choice question 26 from the 2018 Post Utme Christopher University Accounting examination.

Post Utme Christopher University 2018 Accounting Objective / Multiple Choice
Question 26 POST_UTME_CHRISTOPHER_UNIVERSITY • 2018 • ACCOUNTING • objective

In a manufacturing company, the production department incurred a loss of ₦120,000 due to a machine breakdown. The company's accountant recorded the loss as a debit to the machine's account. However, the accountant later realized that the loss should have been recorded as a debit to the 'Loss on Machine' account. What is the correct journal entry to rectify the error?

Answer Options

A. ₦120,000 debit to Machine's account and ₦120,000 credit to Loss on Machine account
B. ₦120,000 credit to Machine's account and ₦120,000 debit to Loss on Machine account
Correct Answer C. ₦120,000 debit to Loss on Machine account and ₦120,000 credit to Machine's account
D. ₦120,000 credit to Loss on Machine account and ₦120,000 debit to Machine's account
Correct Answer
C
Correct Option:
₦120,000 debit to Loss on Machine account and ₦120,000 credit to Machine's account

About This Question

This is Post Utme Christopher University 2018 Accounting Question 26. It is one of the objective questions from the 2018 Post Utme Christopher University Accounting examination.

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