Post Utme Oau 2021 Accounting Question 14

Practice objective / multiple choice question 14 from the 2021 Post Utme Oau Accounting examination.

Post Utme Oau 2021 Accounting Objective / Multiple Choice
Question 14 POST_UTME_OAU • 2021 • ACCOUNTING • objective

A company's balance sheet shows a non-current liability of ₦50,000 in the 'Borrowings' account. However, the company's accounting records indicate that the actual amount of borrowings is ₦60,000. What is the correct journal entry to record the adjustment?

Answer Options

Correct Answer A. ₦10,000 debit to 'Borrowings' and ₦10,000 credit to 'Profit or Loss'
B. ₦10,000 debit to 'Profit or Loss' and ₦10,000 credit to 'Borrowings'
C. ₦50,000 debit to 'Borrowings' and ₦50,000 credit to 'Profit or Loss'
D. ₦60,000 debit to 'Borrowings' and ₦60,000 credit to 'Profit or Loss'
Correct Answer
A
Correct Option:
₦10,000 debit to 'Borrowings' and ₦10,000 credit to 'Profit or Loss'

About This Question

This is Post Utme Oau 2021 Accounting Question 14. It is one of the objective questions from the 2021 Post Utme Oau Accounting examination.

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