Post Utme Oau 2021 Accounting Question 11

Practice objective / multiple choice question 11 from the 2021 Post Utme Oau Accounting examination.

Post Utme Oau 2021 Accounting Objective / Multiple Choice
Question 11 POST_UTME_OAU • 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 indicate that the actual rent paid for the year was ₦20,000. What is the correct journal entry to record the adjustment?

Answer Options

Correct Answer A. ₦5,000 debit to 'Rent and Rates' and ₦5,000 credit to 'Profit or Loss'
B. ₦5,000 debit to 'Profit or Loss' and ₦5,000 credit to 'Rent and Rates'
C. ₦20,000 debit to 'Rent and Rates' and ₦20,000 credit to 'Profit or Loss'
D. ₦15,000 debit to 'Rent and Rates' and ₦15,000 credit to 'Profit or Loss'
Correct Answer
A
Correct Option:
₦5,000 debit to 'Rent and Rates' and ₦5,000 credit to 'Profit or Loss'

About This Question

This is Post Utme Oau 2021 Accounting Question 11. It is one of the objective questions from the 2021 Post Utme Oau Accounting examination.

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