Question 18
POST_UTME_CRAWFORD_UNIVERSITY
•
2017
•
ACCOUNTING
•
objective
A company has the following transactions:
- Purchased office supplies for ₦5,000 cash
- Sold goods for ₦20,000 on credit
- Purchased equipment for ₦10,000 on credit
What is the correct journal entry to record these transactions?
Answer Options
Correct Answer
A.
₦5,000 debit to Office Supplies and ₦5,000 credit to Cash; ₦20,000 debit to Sales and ₦20,000 credit to Accounts Receivable; ₦10,000 debit to Equipment and ₦10,000 credit to Accounts Payable
B.
₦5,000 debit to Cash and ₦5,000 credit to Office Supplies; ₦20,000 debit to Accounts Receivable and ₦20,000 credit to Sales; ₦10,000 debit to Accounts Payable and ₦10,000 credit to Equipment
C.
₦5,000 debit to Office Supplies and ₦5,000 credit to Cash; ₦20,000 debit to Sales and ₦20,000 credit to Accounts Receivable; ₦10,000 debit to Equipment and ₦10,000 credit to Accounts Payable
D.
₦5,000 debit to Cash and ₦5,000 credit to Office Supplies; ₦20,000 debit to Accounts Receivable and ₦20,000 credit to Sales; ₦10,000 debit to Accounts Payable and ₦10,000 credit to Equipment
Correct Answer
A
Correct Option:
₦5,000 debit to Office Supplies and ₦5,000 credit to Cash; ₦20,000 debit to Sales and ₦20,000 credit to Accounts Receivable; ₦10,000 debit to Equipment and ₦10,000 credit to Accounts Payable
About This Question
This is
Post Utme Crawford University
2017
Accounting
Question 18.
It is one of the
objective
questions from the
2017
Post Utme Crawford University
Accounting
examination.