Post Utme Summit University 2024 Accounting Question 16

Practice objective / multiple choice question 16 from the 2024 Post Utme Summit University Accounting examination.

Post Utme Summit University 2024 Accounting Objective / Multiple Choice
Question 16 POST_UTME_SUMMIT_UNIVERSITY • 2024 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records indicate that the rent expense for the year was ₦20,000. What is the correct journal entry to correct the error?

Answer Options

A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
Correct Answer B. Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000
C. Debit Rent Expense ₦15,000, Credit Cash ₦15,000
D. Debit Rent Expense ₦20,000, Credit Cash ₦20,000
Correct Answer
B
Correct Option:
Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000

About This Question

This is Post Utme Summit University 2024 Accounting Question 16. It is one of the objective questions from the 2024 Post Utme Summit University Accounting examination.

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