Post Utme Noun 2019 Accounting Question 18

Practice objective / multiple choice question 18 from the 2019 Post Utme Noun Accounting examination.

Post Utme Noun 2019 Accounting Objective / Multiple Choice
Question 18 POST_UTME_NOUN • 2019 • ACCOUNTING • objective

A company's cash book showed a balance of ₦200,000 in the Cash Account. However, the company's bank statement showed a balance of ₦250,000. The difference of ₦50,000 was due to a bank overdraft. Prepare the necessary journal entry to record the bank overdraft.

Answer Options

Correct Answer A. Debit Bank Overdraft ₦50,000, Credit Cash Account ₦50,000
B. Debit Cash Account ₦50,000, Credit Bank Overdraft ₦50,000
C. Debit Bank Overdraft ₦50,000, Credit Bank Account ₦50,000
D. Debit Bank Account ₦50,000, Credit Bank Overdraft ₦50,000
Correct Answer
A
Correct Option:
Debit Bank Overdraft ₦50,000, Credit Cash Account ₦50,000

About This Question

This is Post Utme Noun 2019 Accounting Question 18. It is one of the objective questions from the 2019 Post Utme Noun Accounting examination.

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