Post Utme Coal City University 2017 Accounting Question 1

Practice objective / multiple choice question 1 from the 2017 Post Utme Coal City University Accounting examination.

Post Utme Coal City University 2017 Accounting Objective / Multiple Choice
Question 1 POST_UTME_COAL_CITY_UNIVERSITY • 2017 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦15,000 in the 'Rent and Rates' account. However, the company's accounting records show that the actual rent paid for the year was ₦8,000. What is the correct journal entry to record the correction?

Answer Options

Correct Answer A. ₦7,000 debit to 'Rent and Rates' and ₦7,000 credit to 'Profit and Loss Account'
B. ₦8,000 debit to 'Rent and Rates' and ₦8,000 credit to 'Profit and Loss Account'
C. ₦15,000 debit to 'Rent and Rates' and ₦15,000 credit to 'Profit and Loss Account'
D. ₦7,000 debit to 'Profit and Loss Account' and ₦7,000 credit to 'Rent and Rates'
Correct Answer
A
Correct Option:
₦7,000 debit to 'Rent and Rates' and ₦7,000 credit to 'Profit and Loss Account'

About This Question

This is Post Utme Coal City University 2017 Accounting Question 1. It is one of the objective questions from the 2017 Post Utme Coal City University Accounting examination.

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