Post Utme Pan Atlantic University 2024 Accounting Question 1

Practice objective / multiple choice question 1 from the 2024 Post Utme Pan Atlantic University Accounting examination.

Post Utme Pan Atlantic University 2024 Accounting Objective / Multiple Choice
Question 1 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2024 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accountant has informed you that the actual rent expense for the year was ₦20,000. What journal entry would you make to correct this error?

Answer Options

A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
Correct Answer B. Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000
C. Debit Rent Expense ₦15,000, Credit Cash ₦15,000
D. Debit Rent Expense ₦20,000, Credit Cash ₦20,000
Correct Answer
B
Correct Option:
Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000

About This Question

This is Post Utme Pan Atlantic University 2024 Accounting Question 1. It is one of the objective questions from the 2024 Post Utme Pan Atlantic University Accounting examination.

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