Post Utme Osustech 2020 Accounting Question 16

Practice objective / multiple choice question 16 from the 2020 Post Utme Osustech Accounting examination.

Post Utme Osustech 2020 Accounting Objective / Multiple Choice
Question 16 POST_UTME_OSUSTECH • 2020 • ACCOUNTING • objective

A trader's ledger account for 'Purchases' shows a debit balance of ₦40,000. However, the 'Purchases Return' account shows a credit balance of ₦8,000. What is the correct journal entry to record the return of goods?

Answer Options

A. Debit 'Purchases Return' and credit 'Purchases'.
Correct Answer B. Debit 'Purchases' and credit 'Purchases Return'.
C. Debit 'Purchases Return' and debit 'Purchases'.
D. Credit 'Purchases Return' and credit 'Purchases'.
Correct Answer
B
Correct Option:
Debit 'Purchases' and credit 'Purchases Return'.

About This Question

This is Post Utme Osustech 2020 Accounting Question 16. It is one of the objective questions from the 2020 Post Utme Osustech Accounting examination.

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