Post Utme Skyline University 2022 Accounting Question 37

Practice objective / multiple choice question 37 from the 2022 Post Utme Skyline University Accounting examination.

Post Utme Skyline University 2022 Accounting Objective / Multiple Choice
Question 37 POST_UTME_SKYLINE_UNIVERSITY • 2022 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦50,000 in the 'Accrued Income' account. However, the company's accounting records indicate that the actual amount of accrued income is ₦30,000. What is the correct journal entry to record the correction?

Answer Options

A. Debit Accrued Income ₦20,000, Credit Profit and Loss Account ₦20,000
Correct Answer B. Debit Profit and Loss Account ₦20,000, Credit Accrued Income ₦20,000
C. Debit Accrued Income ₦20,000, Credit Cash ₦20,000
D. Debit Cash ₦20,000, Credit Accrued Income ₦20,000
Correct Answer
B
Correct Option:
Debit Profit and Loss Account ₦20,000, Credit Accrued Income ₦20,000

About This Question

This is Post Utme Skyline University 2022 Accounting Question 37. It is one of the objective questions from the 2022 Post Utme Skyline University Accounting examination.

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