Post Utme Osustech 2017 Accounting Question 4

Practice objective / multiple choice question 4 from the 2017 Post Utme Osustech Accounting examination.

Post Utme Osustech 2017 Accounting Objective / Multiple Choice
Question 4 POST_UTME_OSUSTECH • 2017 • ACCOUNTING • objective

A company's bank reconciliation statement shows a difference of ₦5,000 between the bank's statement and the company's cash book. The company's cash book balance is ₦20,000, while the bank's statement balance is ₦25,000. Prepare the necessary journal entry to reconcile the difference.

Answer Options

A. Debit Cash ₦5,000, Credit Bank Overdraft ₦5,000
Correct Answer B. Debit Bank Overdraft ₦5,000, Credit Cash ₦5,000
C. Debit Cash ₦5,000, Credit Bank Interest ₦5,000
D. Debit Bank Interest ₦5,000, Credit Cash ₦5,000
Correct Answer
B
Correct Option:
Debit Bank Overdraft ₦5,000, Credit Cash ₦5,000

About This Question

This is Post Utme Osustech 2017 Accounting Question 4. It is one of the objective questions from the 2017 Post Utme Osustech Accounting examination.

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