Post Utme Joseph Ayo Babalola University 2021 Accounting Question 3

Practice objective / multiple choice question 3 from the 2021 Post Utme Joseph Ayo Babalola University Accounting examination.

Post Utme Joseph Ayo Babalola University 2021 Accounting Objective / Multiple Choice
Question 3 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2021 • ACCOUNTING • objective

A company's financial records show that it has purchased a piece of equipment for ₦100,000. However, the company's trial balance shows a debit balance of ₦80,000 in the 'Equipment' account. What is the correct journal entry to record the discrepancy?

Answer Options

A. ₦20,000 debit to 'Equipment' and ₦20,000 credit to 'Cash'
B. ₦80,000 debit to 'Equipment' and ₦100,000 credit to 'Cash'
Correct Answer C. ₦100,000 debit to 'Equipment' and ₦80,000 credit to 'Cash'
D. ₦20,000 credit to 'Equipment' and ₦20,000 debit to 'Cash'
Correct Answer
C
Correct Option:
₦100,000 debit to 'Equipment' and ₦80,000 credit to 'Cash'

About This Question

This is Post Utme Joseph Ayo Babalola University 2021 Accounting Question 3. It is one of the objective questions from the 2021 Post Utme Joseph Ayo Babalola University Accounting examination.

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