Post Utme Greenfield University 2018 Accounting Question 3

Practice objective / multiple choice question 3 from the 2018 Post Utme Greenfield University Accounting examination.

Post Utme Greenfield University 2018 Accounting Objective / Multiple Choice
Question 3 POST_UTME_GREENFIELD_UNIVERSITY • 2018 • ACCOUNTING • objective

A company's balance sheet shows a current liability of ₦50,000. However, the company's accounting records show that the liability was actually ₦60,000. What is the correct journal entry to record the correction?

Answer Options

Correct Answer A. ₦10,000 debit to Current Liability and ₦10,000 credit to Cash
B. ₦10,000 debit to Cash and ₦10,000 credit to Current Liability
C. ₦10,000 debit to Current Liability and ₦10,000 credit to Profit and Loss
D. ₦10,000 debit to Profit and Loss and ₦10,000 credit to Current Liability
Correct Answer
A
Correct Option:
₦10,000 debit to Current Liability and ₦10,000 credit to Cash

About This Question

This is Post Utme Greenfield University 2018 Accounting Question 3. It is one of the objective questions from the 2018 Post Utme Greenfield University Accounting examination.

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