Post Utme Ims U 2024 Accounting Question 22

Practice objective / multiple choice question 22 from the 2024 Post Utme Ims U Accounting examination.

Post Utme Ims U 2024 Accounting Objective / Multiple Choice
Question 22 POST_UTME_IMS_U • 2024 • ACCOUNTING • objective

A company's balance sheet shows a current asset of ₦80,000 in the account 'Accounts Payable'. However, the company's accounting records show that the amount is actually ₦60,000. What is the correct journal entry to correct this error?

Answer Options

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

About This Question

This is Post Utme Ims U 2024 Accounting Question 22. It is one of the objective questions from the 2024 Post Utme Ims U Accounting examination.

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