Post Utme Futa 2018 Accounting Question 36

Practice objective / multiple choice question 36 from the 2018 Post Utme Futa Accounting examination.

Post Utme Futa 2018 Accounting Objective / Multiple Choice
Question 36 POST_UTME_FUTA • 2018 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from its tenants. What is the correct journal entry to correct this error?

Answer Options

A. ₦1,500 debit to Rent Received and ₦1,500 credit to Cash
Correct Answer B. ₦1,500 debit to Rent Received and ₦1,500 credit to Profit or Loss
C. ₦1,500 debit to Cash and ₦1,500 credit to Rent Received
D. ₦1,500 debit to Rent Received and ₦1,500 credit to Accounts Payable
Correct Answer
B
Correct Option:
₦1,500 debit to Rent Received and ₦1,500 credit to Profit or Loss

About This Question

This is Post Utme Futa 2018 Accounting Question 36. It is one of the objective questions from the 2018 Post Utme Futa Accounting examination.

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