Post Utme Uniport 2022 Accounting Question 38

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

Post Utme Uniport 2022 Accounting Objective / Multiple Choice
Question 38 POST_UTME_UNIPORT • 2022 • ACCOUNTING • objective

A company's balance sheet shows a current liability of ₦100,000. However, the company's accounting records show that the liability has been settled. What is the correct journal entry to record the settlement?

Answer Options

A. Debit Current Liability ₦100,000, Credit Cash ₦100,000
B. Debit Current Liability ₦100,000, Credit Bank ₦100,000
Correct Answer C. Debit Cash ₦100,000, Credit Current Liability ₦100,000
D. Debit Bank ₦100,000, Credit Current Liability ₦100,000
Correct Answer
C
Correct Option:
Debit Cash ₦100,000, Credit Current Liability ₦100,000

About This Question

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

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