Post Utme Mountain Top University 2018 Accounting Question 39

Practice objective / multiple choice question 39 from the 2018 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2018 Accounting Objective / Multiple Choice
Question 39 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2018 • ACCOUNTING • objective

A company's trial balance shows a credit balance of ₦20,000 in the 'Dividends' account. However, the company's accounting records show that it has declared a dividend of ₦15,000. What is the correct journal entry to record the dividend?

Answer Options

Correct Answer A. ₦15,000 debit to Dividends, ₦15,000 credit to Retained Earnings
B. ₦15,000 debit to Retained Earnings, ₦15,000 credit to Dividends
C. ₦20,000 debit to Dividends, ₦20,000 credit to Retained Earnings
D. ₦20,000 debit to Retained Earnings, ₦20,000 credit to Dividends
Correct Answer
A
Correct Option:
₦15,000 debit to Dividends, ₦15,000 credit to Retained Earnings

About This Question

This is Post Utme Mountain Top University 2018 Accounting Question 39. It is one of the objective questions from the 2018 Post Utme Mountain Top University Accounting examination.

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