Post Utme Madonna University 2023 Accounting Question 16

Practice objective / multiple choice question 16 from the 2023 Post Utme Madonna University Accounting examination.

Post Utme Madonna University 2023 Accounting Objective / Multiple Choice
Question 16 POST_UTME_MADONNA_UNIVERSITY • 2023 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that the rent expense for the year was ₦20,000. What is the correct journal entry to correct the error?

Answer Options

A. ₦5,000 debit to Rent Expense and ₦5,000 credit to Cash
Correct Answer B. ₦20,000 debit to Rent Expense and ₦20,000 credit to Cash
C. ₦5,000 debit to Rent Expense and ₦5,000 credit to Rent Payable
D. ₦20,000 debit to Rent Expense and ₦20,000 credit to Rent Payable
Correct Answer
B
Correct Option:
₦20,000 debit to Rent Expense and ₦20,000 credit to Cash

About This Question

This is Post Utme Madonna University 2023 Accounting Question 16. It is one of the objective questions from the 2023 Post Utme Madonna University Accounting examination.

View More Post Utme Madonna University 2023 Accounting Questions More Post Utme Madonna University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support