Post Utme Coal City University 2020 Accounting Question 15

Practice objective / multiple choice question 15 from the 2020 Post Utme Coal City University Accounting examination.

Post Utme Coal City University 2020 Accounting Objective / Multiple Choice
Question 15 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 ₦10,000 in the account 'Rent Received'. However, the company's financial statements show a credit balance of ₦5,000 in the same account. What is the correct treatment of this discrepancy?

Answer Options

Correct Answer A. Debit the Rent Received account by ₦5,000 and credit the Rent Paid account by ₦5,000.
B. Credit the Rent Received account by ₦5,000 and debit the Rent Paid account by ₦5,000.
C. Debit the Rent Received account by ₦10,000 and credit the Rent Paid account by ₦10,000.
D. Credit the Rent Received account by ₦10,000 and debit the Rent Paid account by ₦10,000.
Correct Answer
A
Correct Option:
Debit the Rent Received account by ₦5,000 and credit the Rent Paid account by ₦5,000.

About This Question

This is Post Utme Coal City University 2020 Accounting Question 15. It is one of the objective questions from the 2020 Post Utme Coal City University Accounting examination.

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