Post Utme Uniosun 2023 Accounting Question 23

Practice objective / multiple choice question 23 from the 2023 Post Utme Uniosun Accounting examination.

Post Utme Uniosun 2023 Accounting Objective / Multiple Choice
Question 23 POST_UTME_UNIOSUN • 2023 • ACCOUNTING • objective

A company's trial balance shows a debit balance in the 'Rent Expense' account of ₦120,000. However, the company's accounting records show that it has paid ₦150,000 in rent for the year. What is the correct journal entry to correct the error?

Answer Options

A. Debit Rent Expense ₦30,000, Credit Cash ₦30,000
Correct Answer B. Debit Rent Expense ₦30,000, Credit Prepaid Rent ₦30,000
C. Debit Rent Expense ₦120,000, Credit Cash ₦120,000
D. Debit Rent Expense ₦150,000, Credit Cash ₦150,000
Correct Answer
B
Correct Option:
Debit Rent Expense ₦30,000, Credit Prepaid Rent ₦30,000

About This Question

This is Post Utme Uniosun 2023 Accounting Question 23. It is one of the objective questions from the 2023 Post Utme Uniosun Accounting examination.

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