Post Utme Mountain Top University 2019 Accounting Question 23

Practice objective / multiple choice question 23 from the 2019 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2019 Accounting Objective / Multiple Choice
Question 23 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2019 • ACCOUNTING • objective

A company prepares its financial statements in accordance with the accrual accounting method. The company has the following transactions: Sale of goods for ₦50,000, Purchase of goods for ₦30,000, Rent received from tenants for ₦20,000, Salaries paid to employees for ₦15,000. Prepare the trading account and profit and loss account.

Answer Options

Correct Answer A. Trading Account: ₦50,000; Profit and Loss Account: ₦25,000
B. Trading Account: ₦50,000; Profit and Loss Account: ₦30,000
C. Trading Account: ₦50,000; Profit and Loss Account: ₦35,000
D. Trading Account: ₦50,000; Profit and Loss Account: ₦40,000
Correct Answer
A
Correct Option:
Trading Account: ₦50,000; Profit and Loss Account: ₦25,000

About This Question

This is Post Utme Mountain Top University 2019 Accounting Question 23. It is one of the objective questions from the 2019 Post Utme Mountain Top University Accounting examination.

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