Post Utme Noun 2023 Accounting Question 11

Practice objective / multiple choice question 11 from the 2023 Post Utme Noun Accounting examination.

Post Utme Noun 2023 Accounting Objective / Multiple Choice
Question 11 POST_UTME_NOUN • 2023 • ACCOUNTING • objective

A company's cash book shows a balance of ₦120,000. The bank statement shows a balance of ₦130,000. The difference is due to a bank overdraft of ₦10,000. What is the correct journal entry to record the bank overdraft?

Answer Options

Correct Answer A. ₦10,000 debit to Bank Overdraft and ₦10,000 credit to Cash
B. ₦10,000 debit to Cash and ₦10,000 credit to Bank Overdraft
C. ₦10,000 debit to Bank Overdraft and ₦10,000 credit to Bank
D. ₦10,000 debit to Bank and ₦10,000 credit to Bank Overdraft
Correct Answer
A
Correct Option:
₦10,000 debit to Bank Overdraft and ₦10,000 credit to Cash

About This Question

This is Post Utme Noun 2023 Accounting Question 11. It is one of the objective questions from the 2023 Post Utme Noun Accounting examination.

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