Post Utme Mountain Top University 2018 Accounting Question 26

Practice objective / multiple choice question 26 from the 2018 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2018 Accounting Objective / Multiple Choice
Question 26 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2018 • ACCOUNTING • objective

A company uses the single-entry system of accounting. The company's cash book shows a balance of ₦12,500. The bank statement shows a balance of ₦10,500. The company's cash book also shows a debit balance of ₦2,000 in the account 'Office Equipment'. The bank statement shows a credit balance of ₦1,500 in the same account. What is the correct journal entry to reconcile the cash book and bank statement?

Answer Options

Correct Answer A. ₦2,000 debit to Cash and ₦1,500 credit to Office Equipment
B. ₦2,000 credit to Cash and ₦1,500 debit to Office Equipment
C. ₦2,000 debit to Office Equipment and ₦1,500 credit to Cash
D. ₦2,000 credit to Office Equipment and ₦1,500 debit to Cash
Correct Answer
A
Correct Option:
₦2,000 debit to Cash and ₦1,500 credit to Office Equipment

About This Question

This is Post Utme Mountain Top University 2018 Accounting Question 26. It is one of the objective questions from the 2018 Post Utme Mountain Top University Accounting examination.

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