Post Utme Joseph Ayo Babalola University 2021 Accounting Question 21

Practice objective / multiple choice question 21 from the 2021 Post Utme Joseph Ayo Babalola University Accounting examination.

Post Utme Joseph Ayo Babalola University 2021 Accounting Objective / Multiple Choice
Question 21 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2021 • ACCOUNTING • objective

A company uses the double entry system to record its transactions. The company's ledger account for 'Office Equipment' shows a debit balance of ₦120,000. The company's trial balance also shows a credit balance of ₦120,000 for 'Office Equipment'. What is the correct journal entry to record the purchase of office equipment?

Answer Options

Correct Answer A. Debit Office Equipment ₦120,000, Credit Cash ₦120,000
B. Debit Office Equipment ₦120,000, Credit Bank ₦120,000
C. Debit Office Equipment ₦120,000, Credit Office Supplies ₦120,000
D. Debit Office Equipment ₦120,000, Credit Office Expenses ₦120,000
Correct Answer
A
Correct Option:
Debit Office Equipment ₦120,000, Credit Cash ₦120,000

About This Question

This is Post Utme Joseph Ayo Babalola University 2021 Accounting Question 21. It is one of the objective questions from the 2021 Post Utme Joseph Ayo Babalola University Accounting examination.

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