Post Utme Coal City University 2022 Accounting Question 6

Practice objective / multiple choice question 6 from the 2022 Post Utme Coal City University Accounting examination.

Post Utme Coal City University 2022 Accounting Objective / Multiple Choice
Question 6 POST_UTME_COAL_CITY_UNIVERSITY • 2022 • ACCOUNTING • objective

A company's trial balance shows a discrepancy of ₦50,000 between the debit and credit sides. The company's accountant suspects that the error occurred in the journal entry for the purchase of office equipment. The accountant has identified two possible errors: (i) the debit entry for the purchase of office equipment was overstated by ₦20,000, and (ii) the credit entry for the purchase of office equipment was understated by ₦30,000. Which of the following journal entries would correct the error?

Answer Options

A. Debit Office Equipment ₦20,000, Credit Cash ₦20,000
B. Debit Office Equipment ₦30,000, Credit Cash ₦30,000
Correct Answer C. Debit Office Equipment ₦20,000, Credit Cash ₦30,000
D. Debit Office Equipment ₦30,000, Credit Cash ₦20,000
Correct Answer
C
Correct Option:
Debit Office Equipment ₦20,000, Credit Cash ₦30,000

About This Question

This is Post Utme Coal City University 2022 Accounting Question 6. It is one of the objective questions from the 2022 Post Utme Coal City University Accounting examination.

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