Post Utme Elizade University 2021 Accounting Question 16

Practice objective / multiple choice question 16 from the 2021 Post Utme Elizade University Accounting examination.

Post Utme Elizade University 2021 Accounting Objective / Multiple Choice
Question 16 POST_UTME_ELIZADE_UNIVERSITY • 2021 • ACCOUNTING • objective

A company's trial balance showed a debit balance in the account 'Dividends Received' of ₦50,000. The company's accounting records showed that it received a dividend of ₦60,000 from its investment in another company. However, the company also paid a dividend of ₦10,000 to its shareholders. What is the correct journal entry to rectify the error in the trial balance?

Answer Options

A. ₦50,000 debit to Dividends Received and ₦50,000 credit to Cash
B. ₦60,000 debit to Dividends Received and ₦60,000 credit to Cash
C. ₦10,000 debit to Dividends Paid and ₦10,000 credit to Cash
Correct Answer D. ₦50,000 debit to Dividends Received and ₦10,000 credit to Dividends Paid
Correct Answer
D
Correct Option:
₦50,000 debit to Dividends Received and ₦10,000 credit to Dividends Paid

About This Question

This is Post Utme Elizade University 2021 Accounting Question 16. It is one of the objective questions from the 2021 Post Utme Elizade University Accounting examination.

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