Post Utme Pan Atlantic University 2025 Accounting Question 19

Practice objective / multiple choice question 19 from the 2025 Post Utme Pan Atlantic University Accounting examination.

Post Utme Pan Atlantic University 2025 Accounting Objective / Multiple Choice
Question 19 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2025 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The company's trial balance shows the following balances: Accounts Payable ₦ 50,000, Accounts Receivable ₦ 30,000, Common Stock ₦ 100,000, Dividends ₦ 10,000, Retained Earnings ₦ 20,000. If the company's net income for the year is ₦ 40,000, what is the correct journal entry to record the net income?

Answer Options

A. Debit Accounts Payable ₦ 50,000, Debit Accounts Receivable ₦ 30,000, Credit Common Stock ₦ 100,000, Credit Dividends ₦ 10,000, Credit Retained Earnings ₦ 20,000
B. Debit Accounts Payable ₦ 50,000, Debit Accounts Receivable ₦ 30,000, Credit Common Stock ₦ 100,000, Credit Dividends ₦ 10,000, Credit Retained Earnings ₦ 20,000
C. Debit Accounts Payable ₦ 50,000, Debit Accounts Receivable ₦ 30,000, Credit Common Stock ₦ 100,000, Credit Dividends ₦ 10,000, Credit Retained Earnings ₦ 20,000
Correct Answer D. Debit Accounts Payable ₦ 50,000, Debit Accounts Receivable ₦ 30,000, Credit Common Stock ₦ 100,000, Credit Dividends ₦ 10,000, Credit Retained Earnings ₦ 20,000
Correct Answer
D
Correct Option:
Debit Accounts Payable ₦ 50,000, Debit Accounts Receivable ₦ 30,000, Credit Common Stock ₦ 100,000, Credit Dividends ₦ 10,000, Credit Retained Earnings ₦ 20,000

About This Question

This is Post Utme Pan Atlantic University 2025 Accounting Question 19. It is one of the objective questions from the 2025 Post Utme Pan Atlantic University Accounting examination.

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