Post Utme Covenant University 2018 Accounting Question 40

Practice objective / multiple choice question 40 from the 2018 Post Utme Covenant University Accounting examination.

Post Utme Covenant University 2018 Accounting Objective / Multiple Choice
Question 40 POST_UTME_COVENANT_UNIVERSITY • 2018 • ACCOUNTING • objective

A company's manufacturing account showed a balance of ₦120,000 in the work-in-progress account. However, the departmental accounts showed a balance of ₦100,000. Prepare the necessary journal entry to correct the error.

Answer Options

A. Debit Work-in-Progress ₦20,000, Credit Profit and Loss Account ₦20,000
Correct Answer B. Debit Profit and Loss Account ₦20,000, Credit Work-in-Progress ₦20,000
C. Debit Bank ₦20,000, Credit Work-in-Progress ₦20,000
D. Debit Work-in-Progress ₦20,000, Credit Bank ₦20,000
Correct Answer
B
Correct Option:
Debit Profit and Loss Account ₦20,000, Credit Work-in-Progress ₦20,000

About This Question

This is Post Utme Covenant University 2018 Accounting Question 40. It is one of the objective questions from the 2018 Post Utme Covenant University Accounting examination.

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