Post Utme Summit University 2020 Accounting Question 29

Practice objective / multiple choice question 29 from the 2020 Post Utme Summit University Accounting examination.

Post Utme Summit University 2020 Accounting Objective / Multiple Choice
Question 29 POST_UTME_SUMMIT_UNIVERSITY • 2020 • ACCOUNTING • objective

A company uses the double-entry system of accounting. The company's ledger shows a debit balance of ₦600,000 in the Asset Account and a credit balance of ₦500,000 in the Liability Account. What is the correct journal entry to record the difference between the Asset and Liability balances?

Answer Options

Correct Answer A. ₦100,000 debit to Asset Account and ₦100,000 credit to Liability Account
B. ₦100,000 credit to Asset Account and ₦100,000 debit to Liability Account
C. ₦100,000 debit to Asset Account and ₦100,000 credit to Capital Account
D. ₦100,000 credit to Asset Account and ₦100,000 debit to Capital Account
Correct Answer
A
Correct Option:
₦100,000 debit to Asset Account and ₦100,000 credit to Liability Account

About This Question

This is Post Utme Summit University 2020 Accounting Question 29. It is one of the objective questions from the 2020 Post Utme Summit University Accounting examination.

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