Post Utme Futa 2017 Accounting Question 22

Practice objective / multiple choice question 22 from the 2017 Post Utme Futa Accounting examination.

Post Utme Futa 2017 Accounting Objective / Multiple Choice
Question 22 POST_UTME_FUTA • 2017 • ACCOUNTING • objective

A company's balance sheet shows an increase in the value of its property, plant and equipment by ₦1,500,000. The increase is due to the purchase of new machinery. Prepare the necessary journal entry to record the increase in value.

Answer Options

Correct Answer A. Debit Machinery ₦1,500,000, Credit Bank ₦1,500,000
B. Debit Machinery ₦1,500,000, Credit Accumulated Depreciation ₦1,500,000
C. Debit Machinery ₦1,500,000, Credit Bank ₦1,500,000 and Accumulated Depreciation ₦1,500,000
D. Debit Bank ₦1,500,000, Credit Machinery ₦1,500,000
Correct Answer
A
Correct Option:
Debit Machinery ₦1,500,000, Credit Bank ₦1,500,000

About This Question

This is Post Utme Futa 2017 Accounting Question 22. It is one of the objective questions from the 2017 Post Utme Futa Accounting examination.

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