Post Utme Esut 2022 Accounting Question 20

Practice objective / multiple choice question 20 from the 2022 Post Utme Esut Accounting examination.

Post Utme Esut 2022 Accounting Objective / Multiple Choice
Question 20 POST_UTME_ESUT • 2022 • ACCOUNTING • objective

A company has a ledger that shows a debit balance of ₦40,000 in the account 'Purchases'. However, the company's accounting records show that the purchases were actually made on credit. What is the correct treatment of this error?

Answer Options

A. Debit the 'Purchases' account and credit the 'Purchases Returns' account
B. Debit the 'Purchases Returns' account and credit the 'Purchases' account
Correct Answer C. Debit the 'Purchases' account and credit the 'Creditors' account
D. Credit the 'Purchases' account and debit the 'Creditors' account
Correct Answer
C
Correct Option:
Debit the 'Purchases' account and credit the 'Creditors' account

About This Question

This is Post Utme Esut 2022 Accounting Question 20. It is one of the objective questions from the 2022 Post Utme Esut Accounting examination.

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