Post Utme Summit University 2020 Accounting Question 25

Practice objective / multiple choice question 25 from the 2020 Post Utme Summit University Accounting examination.

Post Utme Summit University 2020 Accounting Objective / Multiple Choice
Question 25 POST_UTME_SUMMIT_UNIVERSITY • 2020 • ACCOUNTING • objective

A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦150,000. The company's ledger shows a credit balance of ₦200,000. What is the correct journal entry to record the difference between the cash book and ledger balances?

Answer Options

Correct Answer A. ₦50,000 debit to Cash and ₦50,000 credit to Profit or Loss Account
B. ₦50,000 credit to Cash and ₦50,000 debit to Profit or Loss Account
C. ₦50,000 debit to Cash and ₦50,000 credit to Drawings Account
D. ₦50,000 credit to Cash and ₦50,000 debit to Drawings Account
Correct Answer
A
Correct Option:
₦50,000 debit to Cash and ₦50,000 credit to Profit or Loss Account

About This Question

This is Post Utme Summit University 2020 Accounting Question 25. It is one of the objective questions from the 2020 Post Utme Summit University Accounting examination.

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