Post Utme Nile University 2024 Accounting Question 24

Practice objective / multiple choice question 24 from the 2024 Post Utme Nile University Accounting examination.

Post Utme Nile University 2024 Accounting Objective / Multiple Choice
Question 24 POST_UTME_NILE_UNIVERSITY • 2024 • ACCOUNTING • objective

A company's trial balance shows a credit balance of ₦40,000 in the 'Dividends' account. However, the company's accounting records show that it has not paid any dividends. What is the correct treatment for this discrepancy?

Answer Options

A. Credit the 'Dividends' account by ₦40,000
B. Debit the 'Dividends' account by ₦40,000
Correct Answer C. Credit the 'Dividends' account by ₦40,000 and debit the 'Retained Earnings' account by ₦40,000
D. Do nothing, as it is a normal transaction
Correct Answer
C
Correct Option:
Credit the 'Dividends' account by ₦40,000 and debit the 'Retained Earnings' account by ₦40,000

About This Question

This is Post Utme Nile University 2024 Accounting Question 24. It is one of the objective questions from the 2024 Post Utme Nile University Accounting examination.

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