Post Utme Redeemers University 2024 Accounting Question 4

Practice objective / multiple choice question 4 from the 2024 Post Utme Redeemers University Accounting examination.

Post Utme Redeemers University 2024 Accounting Objective / Multiple Choice
Question 4 POST_UTME_REDEEMERS_UNIVERSITY • 2024 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦30,000 in the account 'Accounts Payable' and a credit balance of ₦25,000 in the account 'Accounts Receivable'. What is the correct treatment of this discrepancy?

Answer Options

A. The discrepancy should be treated as an error and corrected by adjusting the accounts.
B. The discrepancy should be treated as a difference between the debit and credit balances and ignored.
C. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a journal entry.
Correct Answer D. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a correcting entry.
Correct Answer
D
Correct Option:
The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a correcting entry.

About This Question

This is Post Utme Redeemers University 2024 Accounting Question 4. It is one of the objective questions from the 2024 Post Utme Redeemers University Accounting examination.

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