Post Utme Ims U 2021 Accounting Question 31

Practice objective / multiple choice question 31 from the 2021 Post Utme Ims U Accounting examination.

Post Utme Ims U 2021 Accounting Objective / Multiple Choice
Question 31 POST_UTME_IMS_U • 2021 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦15,000 in the 'Office Equipment' account. However, the company's accountant has informed you that the correct value of the office equipment is ₦20,000. What is the correct entry to record the adjustment?

Answer Options

Correct Answer A. ₦5,000 debit to 'Office Equipment' and ₦5,000 credit to 'Profit or Loss on Disposal of Assets'
B. ₦5,000 credit to 'Office Equipment' and ₦5,000 debit to 'Profit or Loss on Disposal of Assets'
C. ₦5,000 debit to 'Profit or Loss on Disposal of Assets' and ₦5,000 credit to 'Office Equipment'
D. ₦5,000 credit to 'Office Equipment' and ₦5,000 debit to 'Office Expenses'
Correct Answer
A
Correct Option:
₦5,000 debit to 'Office Equipment' and ₦5,000 credit to 'Profit or Loss on Disposal of Assets'

About This Question

This is Post Utme Ims U 2021 Accounting Question 31. It is one of the objective questions from the 2021 Post Utme Ims U Accounting examination.

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