Post Utme Ims U 2024 Accounting Question 20

Practice objective / multiple choice question 20 from the 2024 Post Utme Ims U Accounting examination.

Post Utme Ims U 2024 Accounting Objective / Multiple Choice
Question 20 POST_UTME_IMS_U • 2024 • ACCOUNTING • objective

A company's balance sheet shows a non-current liability of ₦100,000 in the account 'Bonds Payable'. However, the company's accounting records show that the bonds were actually redeemed. What is the correct journal entry to correct this error?

Answer Options

Correct Answer A. ₦100,000 debit to Bonds Payable and ₦100,000 credit to Cash
B. ₦100,000 debit to Cash and ₦100,000 credit to Bonds Payable
C. ₦100,000 debit to Bonds Payable and ₦100,000 credit to Profit
D. ₦100,000 debit to Profit and ₦100,000 credit to Bonds Payable
Correct Answer
A
Correct Option:
₦100,000 debit to Bonds Payable and ₦100,000 credit to Cash

About This Question

This is Post Utme Ims U 2024 Accounting Question 20. It is one of the objective questions from the 2024 Post Utme Ims U Accounting examination.

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