Post Utme Coal City University 2020 Accounting Question 13

Practice objective / multiple choice question 13 from the 2020 Post Utme Coal City University Accounting examination.

Post Utme Coal City University 2020 Accounting Objective / Multiple Choice
Question 13 POST_UTME_COAL_CITY_UNIVERSITY • 2020 • ACCOUNTING • objective

A company prepares its financial statements for the year ended December 31, 2020. The company's trial balance shows a debit balance of ₦20,000 in the account 'Depreciation Expense'. However, the company's financial statements show a credit balance of ₦15,000 in the same account. What is the correct treatment of this discrepancy?

Answer Options

Correct Answer A. Debit the Depreciation Expense account by ₦15,000 and credit the Accumulated Depreciation account by ₦15,000.
B. Credit the Depreciation Expense account by ₦15,000 and debit the Accumulated Depreciation account by ₦15,000.
C. Debit the Depreciation Expense account by ₦20,000 and credit the Accumulated Depreciation account by ₦20,000.
D. Credit the Depreciation Expense account by ₦20,000 and debit the Accumulated Depreciation account by ₦20,000.
Correct Answer
A
Correct Option:
Debit the Depreciation Expense account by ₦15,000 and credit the Accumulated Depreciation account by ₦15,000.

About This Question

This is Post Utme Coal City University 2020 Accounting Question 13. It is one of the objective questions from the 2020 Post Utme Coal City University Accounting examination.

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