Post Utme Unilag 2019 Accounting Question 8

Practice objective / multiple choice question 8 from the 2019 Post Utme Unilag Accounting examination.

Post Utme Unilag 2019 Accounting Objective / Multiple Choice
Question 8 POST_UTME_UNILAG • 2019 • ACCOUNTING • objective

A company's trading account shows a profit of ₦20,000. However, the profit and loss account shows a loss of ₦15,000. What is the correct explanation for this discrepancy?

Answer Options

A. The company has a loan outstanding with the bank.
B. The company has deposited cash into the bank but has not yet been credited.
C. The company has written a cheque but has not yet been debited.
Correct Answer D. The company has a credit balance in its trading account but a debit balance in its profit and loss account.
Correct Answer
D
Correct Option:
The company has a credit balance in its trading account but a debit balance in its profit and loss account.

About This Question

This is Post Utme Unilag 2019 Accounting Question 8. It is one of the objective questions from the 2019 Post Utme Unilag Accounting examination.

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