Post Utme Futa 2018 Accounting Question 40

Practice objective / multiple choice question 40 from the 2018 Post Utme Futa Accounting examination.

Post Utme Futa 2018 Accounting Objective / Multiple Choice
Question 40 POST_UTME_FUTA • 2018 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦5,000 in the account 'Salaries and Wages'. However, the company's accounting records show that it has paid all its employees. What is the correct journal entry to correct this error?

Answer Options

A. ₦5,000 debit to Salaries and Wages and ₦5,000 credit to Cash
B. ₦5,000 debit to Salaries and Wages and ₦5,000 credit to Profit or Loss
Correct Answer C. ₦5,000 debit to Cash and ₦5,000 credit to Salaries and Wages
D. ₦5,000 debit to Salaries and Wages and ₦5,000 credit to Accounts Payable
Correct Answer
C
Correct Option:
₦5,000 debit to Cash and ₦5,000 credit to Salaries and Wages

About This Question

This is Post Utme Futa 2018 Accounting Question 40. It is one of the objective questions from the 2018 Post Utme Futa Accounting examination.

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