Post Utme Veritas University 2019 Accounting Question 6

Practice objective / multiple choice question 6 from the 2019 Post Utme Veritas University Accounting examination.

Post Utme Veritas University 2019 Accounting Objective / Multiple Choice
Question 6 POST_UTME_VERITAS_UNIVERSITY • 2019 • ACCOUNTING • objective

A company's trial balance shows a debit balance of ₦50,000 in the account 'Rent Received'. The company's accounting policy requires that all rent received be credited to the 'Rent Received' account. However, the company's management has decided to treat the rent received as revenue. What is the correct journal entry to record this adjustment?

Answer Options

A. Debit Rent Received ₦50,000, Credit Revenue ₦50,000
Correct Answer B. Debit Rent Received ₦50,000, Credit Profit and Loss Account ₦50,000
C. Credit Rent Received ₦50,000, Debit Revenue ₦50,000
D. Credit Rent Received ₦50,000, Debit Profit and Loss Account ₦50,000
Correct Answer
B
Correct Option:
Debit Rent Received ₦50,000, Credit Profit and Loss Account ₦50,000

About This Question

This is Post Utme Veritas University 2019 Accounting Question 6. It is one of the objective questions from the 2019 Post Utme Veritas University Accounting examination.

View More Post Utme Veritas University 2019 Accounting Questions More Post Utme Veritas University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support