Post Utme Uniport 2022 Accounting Question 39

Practice objective / multiple choice question 39 from the 2022 Post Utme Uniport Accounting examination.

Post Utme Uniport 2022 Accounting Objective / Multiple Choice
Question 39 POST_UTME_UNIPORT • 2022 • ACCOUNTING • objective

A company's trial balance shows a credit balance of ₦20,000 in the 'Dividends' account. However, the company's accounting records show that the dividends have not been declared. What is the correct journal entry to record the correction?

Answer Options

A. Debit Dividends ₦20,000, Credit Retained Earnings ₦20,000
Correct Answer B. Debit Retained Earnings ₦20,000, Credit Dividends ₦20,000
C. Debit Dividends ₦20,000, Credit Cash ₦20,000
D. Debit Cash ₦20,000, Credit Dividends ₦20,000
Correct Answer
B
Correct Option:
Debit Retained Earnings ₦20,000, Credit Dividends ₦20,000

About This Question

This is Post Utme Uniport 2022 Accounting Question 39. It is one of the objective questions from the 2022 Post Utme Uniport Accounting examination.

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