Post Utme Rhema University 2017 Accounting Question 3

Practice objective / multiple choice question 3 from the 2017 Post Utme Rhema University Accounting examination.

Post Utme Rhema University 2017 Accounting Objective / Multiple Choice
Question 3 POST_UTME_RHEMA_UNIVERSITY • 2017 • ACCOUNTING • objective

A company uses the double entry system of accounting. On January 1, 2020, it purchased a machine for ₦500,000. On December 31, 2020, the machine was valued at ₦600,000. What is the journal entry to record the increase in value of the machine?

Answer Options

Correct Answer A. Debit Machine ₦100,000, Credit Profit ₦100,000
B. Debit Profit ₦100,000, Credit Machine ₦100,000
C. Debit Machine ₦100,000, Credit Loss ₦100,000
D. Debit Loss ₦100,000, Credit Machine ₦100,000
Correct Answer
A
Correct Option:
Debit Machine ₦100,000, Credit Profit ₦100,000

About This Question

This is Post Utme Rhema University 2017 Accounting Question 3. It is one of the objective questions from the 2017 Post Utme Rhema University Accounting examination.

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