Post Utme Pan Atlantic University 2022 Accounting Question 34

Practice objective / multiple choice question 34 from the 2022 Post Utme Pan Atlantic University Accounting examination.

Post Utme Pan Atlantic University 2022 Accounting Objective / Multiple Choice
Question 34 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2022 • ACCOUNTING • objective

A company's financial statements show a trading profit of ₦50,000 and a net loss of ₦20,000. What is the correct treatment of this net loss in the preparation of the company's financial statements?

Answer Options

A. Debit the 'Profit and Loss Account' and credit the 'Capital Account' for ₦20,000.
Correct Answer B. Credit the 'Profit and Loss Account' and debit the 'Capital Account' for ₦20,000.
C. Debit the 'Capital Account' and credit the 'Profit and Loss Account' for ₦20,000.
D. Credit the 'Capital Account' and debit the 'Profit and Loss Account' for ₦20,000.
Correct Answer
B
Correct Option:
Credit the 'Profit and Loss Account' and debit the 'Capital Account' for ₦20,000.

About This Question

This is Post Utme Pan Atlantic University 2022 Accounting Question 34. It is one of the objective questions from the 2022 Post Utme Pan Atlantic University Accounting examination.

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