Post Utme Noun 2020 Accounting Question 17

Practice objective / multiple choice question 17 from the 2020 Post Utme Noun Accounting examination.

Post Utme Noun 2020 Accounting Objective / Multiple Choice
Question 17 POST_UTME_NOUN • 2020 • ACCOUNTING • objective

A company's trial balance shows a credit balance of ₦12,000 in the 'Dividends' account. However, the company's accounting records show that it has declared a dividend of ₦18,000. What is the correct journal entry to record the dividend?

Answer Options

Correct Answer A. Debit Dividends ₦18,000, Credit Retained Earnings ₦18,000
B. Debit Dividends ₦12,000, Credit Retained Earnings ₦12,000
C. Debit Dividends ₦18,000, Credit Cash ₦18,000
D. Debit Dividends ₦12,000, Credit Cash ₦12,000
Correct Answer
A
Correct Option:
Debit Dividends ₦18,000, Credit Retained Earnings ₦18,000

About This Question

This is Post Utme Noun 2020 Accounting Question 17. It is one of the objective questions from the 2020 Post Utme Noun Accounting examination.

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