Post Utme Coal City University 2020 Accounting Question 14

Practice objective / multiple choice question 14 from the 2020 Post Utme Coal City University Accounting examination.

Post Utme Coal City University 2020 Accounting Objective / Multiple Choice
Question 14 POST_UTME_COAL_CITY_UNIVERSITY • 2020 • ACCOUNTING • objective

A company's financial statements for the year ended December 31, 2020, show a net loss of ₦50,000. However, the company's trial balance shows a debit balance of ₦20,000 in the account 'Salaries Expense'. What is the correct treatment of this discrepancy?

Answer Options

A. Debit the Salaries Expense account by ₦20,000 and credit the Salaries Payable account by ₦20,000.
Correct Answer B. Credit the Salaries Expense account by ₦20,000 and debit the Salaries Payable account by ₦20,000.
C. Debit the Salaries Expense account by ₦30,000 and credit the Salaries Payable account by ₦30,000.
D. Credit the Salaries Expense account by ₦30,000 and debit the Salaries Payable account by ₦30,000.
Correct Answer
B
Correct Option:
Credit the Salaries Expense account by ₦20,000 and debit the Salaries Payable account by ₦20,000.

About This Question

This is Post Utme Coal City University 2020 Accounting Question 14. It is one of the objective questions from the 2020 Post Utme Coal City University Accounting examination.

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