Post Utme Coal City University 2019 Accounting Question 33

Practice objective / multiple choice question 33 from the 2019 Post Utme Coal City University Accounting examination.

Post Utme Coal City University 2019 Accounting Objective / Multiple Choice
Question 33 POST_UTME_COAL_CITY_UNIVERSITY • 2019 • ACCOUNTING • objective

A company uses the single-entry system of accounting. The company's cash book shows a balance of ₦100,000, but the ledger account 'Cash' shows a balance of ₦120,000. What is the correct procedure for adjusting the cash book balance to agree with the ledger account balance?

Answer Options

Correct Answer A. Debit the cash book by ₦20,000 and credit the ledger account 'Cash' by ₦20,000.
B. Credit the cash book by ₦20,000 and debit the ledger account 'Cash' by ₦20,000.
C. Debit the ledger account 'Cash' by ₦20,000 and credit the cash book by ₦20,000.
D. Ignore the discrepancy.
Correct Answer
A
Correct Option:
Debit the cash book by ₦20,000 and credit the ledger account 'Cash' by ₦20,000.

About This Question

This is Post Utme Coal City University 2019 Accounting Question 33. It is one of the objective questions from the 2019 Post Utme Coal City University Accounting examination.

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