Post Utme Madonna University 2020 Accounting Question 3

Practice objective / multiple choice question 3 from the 2020 Post Utme Madonna University Accounting examination.

Post Utme Madonna University 2020 Accounting Objective / Multiple Choice
Question 3 POST_UTME_MADONNA_UNIVERSITY • 2020 • ACCOUNTING • objective

A company uses the double-entry system of accounting. If a customer pays ₦50,000 for goods sold, and the company has a trade receivable account with a balance of ₦20,000, what is the journal entry to record this transaction?

Answer Options

A. Debit Trade Receivable ₦50,000, Credit Cash ₦50,000
Correct Answer B. Debit Cash ₦50,000, Credit Trade Receivable ₦20,000
C. Debit Trade Receivable ₦30,000, Credit Cash ₦30,000
D. Debit Cash ₦30,000, Credit Trade Receivable ₦30,000
Correct Answer
B
Correct Option:
Debit Cash ₦50,000, Credit Trade Receivable ₦20,000

About This Question

This is Post Utme Madonna University 2020 Accounting Question 3. It is one of the objective questions from the 2020 Post Utme Madonna University Accounting examination.

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