Post Utme Ims U 2024 Accounting Question 19

Practice objective / multiple choice question 19 from the 2024 Post Utme Ims U Accounting examination.

Post Utme Ims U 2024 Accounting Objective / Multiple Choice
Question 19 POST_UTME_IMS_U • 2024 • ACCOUNTING • objective

A company's trial balance shows a credit balance of ₦20,000 in the account 'Dividends'. However, the company's accounting records show that the dividends were actually paid to the shareholders. What is the correct journal entry to correct this error?

Answer Options

A. ₦20,000 debit to Dividends and ₦20,000 credit to Cash
Correct Answer B. ₦20,000 debit to Cash and ₦20,000 credit to Dividends
C. ₦20,000 debit to Dividends and ₦20,000 credit to Profit
D. ₦20,000 debit to Profit and ₦20,000 credit to Dividends
Correct Answer
B
Correct Option:
₦20,000 debit to Cash and ₦20,000 credit to Dividends

About This Question

This is Post Utme Ims U 2024 Accounting Question 19. It is one of the objective questions from the 2024 Post Utme Ims U Accounting examination.

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