Post Utme Greenfield University 2020 Accounting Question 25

Practice objective / multiple choice question 25 from the 2020 Post Utme Greenfield University Accounting examination.

Post Utme Greenfield University 2020 Accounting Objective / Multiple Choice
Question 25 POST_UTME_GREENFIELD_UNIVERSITY • 2020 • ACCOUNTING • objective

A company uses the double entry system to record its transactions. The company's accounting records show that it has purchased goods worth ₦100,000. However, the company's ledger shows a debit balance of ₦50,000 in the account 'Purchases'. What is the most likely explanation for this discrepancy?

Answer Options

A. The company has incorrectly recorded the purchases as a debit.
Correct Answer B. The company has incorrectly recorded the purchases as a credit.
C. The company has not purchased any goods.
D. The company has incorrectly recorded the bank charges as a debit.
Correct Answer
B
Correct Option:
The company has incorrectly recorded the purchases as a credit.

About This Question

This is Post Utme Greenfield University 2020 Accounting Question 25. It is one of the objective questions from the 2020 Post Utme Greenfield University Accounting examination.

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