Post Utme Mountain Top University 2021 Accounting Question 6

Practice objective / multiple choice question 6 from the 2021 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2021 Accounting Objective / Multiple Choice
Question 6 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2021 • ACCOUNTING • objective

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

Answer Options

A. Debit Rent and Rates by ₦5,000 and credit Profit and Loss by ₦5,000
Correct Answer B. Debit Profit and Loss by ₦5,000 and credit Rent and Rates by ₦5,000
C. Debit Rent and Rates by ₦5,000 and credit Capital by ₦5,000
D. Debit Capital by ₦5,000 and credit Rent and Rates by ₦5,000
Correct Answer
B
Correct Option:
Debit Profit and Loss by ₦5,000 and credit Rent and Rates by ₦5,000

About This Question

This is Post Utme Mountain Top University 2021 Accounting Question 6. It is one of the objective questions from the 2021 Post Utme Mountain Top University Accounting examination.

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