Post Utme Lautech 2018 Accounting Question 1

Practice objective / multiple choice question 1 from the 2018 Post Utme Lautech Accounting examination.

Post Utme Lautech 2018 Accounting Objective / Multiple Choice
Question 1 POST_UTME_LAUTECH • 2018 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct treatment of these accounts in the preparation of the company's final accounts?

Answer Options

A. The debit balance in 'Rent Received' is ignored and the credit balance in 'Rent Paid' is ignored.
Correct Answer B. The debit balance in 'Rent Received' is transferred to the profit and loss account and the credit balance in 'Rent Paid' is transferred to the profit and loss account.
C. The debit balance in 'Rent Received' is transferred to the profit and loss account and the credit balance in 'Rent Paid' is ignored.
D. The debit balance in 'Rent Received' is ignored and the credit balance in 'Rent Paid' is transferred to the profit and loss account.
Correct Answer
B
Correct Option:
The debit balance in 'Rent Received' is transferred to the profit and loss account and the credit balance in 'Rent Paid' is transferred to the profit and loss account.

About This Question

This is Post Utme Lautech 2018 Accounting Question 1. It is one of the objective questions from the 2018 Post Utme Lautech Accounting examination.

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