Post Utme Pan Atlantic University 2017 Accounting Question 5

Practice objective / multiple choice question 5 from the 2017 Post Utme Pan Atlantic University Accounting examination.

Post Utme Pan Atlantic University 2017 Accounting Objective / Multiple Choice
Question 5 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2017 • ACCOUNTING • objective

A company's trial balance shows an error of ₦5,000 in the debit side of the purchases account. The correct figure is ₦1,50,000. What is the effect of this error on the net profit?

Answer Options

A. Increases the net profit by ₦5,000
Correct Answer B. Decreases the net profit by ₦5,000
C. Increases the net profit by ₦ 50,000
D. Decreases the net profit by ₦ 50,000
Correct Answer
B
Correct Option:
Decreases the net profit by ₦5,000

About This Question

This is Post Utme Pan Atlantic University 2017 Accounting Question 5. It is one of the objective questions from the 2017 Post Utme Pan Atlantic University Accounting examination.

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