Post Utme Summit University 2022 Accounting Question 38

Practice objective / multiple choice question 38 from the 2022 Post Utme Summit University Accounting examination.

Post Utme Summit University 2022 Accounting Objective / Multiple Choice
Question 38 POST_UTME_SUMMIT_UNIVERSITY • 2022 • ACCOUNTING • objective

A company uses the double-entry system of accounting. If the company purchases an asset for ₦500,000 and pays ₦200,000 in cash, what is the journal entry to record the purchase?

Answer Options

Correct Answer A. Debit Asset ₦500,000, Credit Cash ₦200,000
B. Debit Cash ₦500,000, Credit Asset ₦200,000
C. Debit Asset ₦200,000, Credit Cash ₦500,000
D. Debit Cash ₦200,000, Credit Asset ₦500,000
Correct Answer
A
Correct Option:
Debit Asset ₦500,000, Credit Cash ₦200,000

About This Question

This is Post Utme Summit University 2022 Accounting Question 38. It is one of the objective questions from the 2022 Post Utme Summit University Accounting examination.

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