Post Utme Crawford University 2017 Accounting Question 16

Practice objective / multiple choice question 16 from the 2017 Post Utme Crawford University Accounting examination.

Post Utme Crawford University 2017 Accounting Objective / Multiple Choice
Question 16 POST_UTME_CRAWFORD_UNIVERSITY • 2017 • ACCOUNTING • objective

A company uses the single entry system to record its transactions. The company's cash account shows a balance of ₦120,000. The company's bank statement shows a balance of ₦110,000. The bank has charged a service fee of ₦1,500. What is the correct journal entry to record the bank reconciliation?

Answer Options

A. ₦1,500 debit to Cash and ₦1,500 credit to Bank Charges
Correct Answer B. ₦1,500 debit to Bank Charges and ₦1,500 credit to Cash
C. ₦1,500 debit to Bank Charges and ₦1,500 credit to Bank
D. ₦1,500 debit to Cash and ₦1,500 credit to Bank
Correct Answer
B
Correct Option:
₦1,500 debit to Bank Charges and ₦1,500 credit to Cash

About This Question

This is Post Utme Crawford University 2017 Accounting Question 16. It is one of the objective questions from the 2017 Post Utme Crawford University Accounting examination.

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