Post Utme Veritas University 2020 Accounting Question 14

Practice objective / multiple choice question 14 from the 2020 Post Utme Veritas University Accounting examination.

Post Utme Veritas University 2020 Accounting Objective / Multiple Choice
Question 14 POST_UTME_VERITAS_UNIVERSITY • 2020 • ACCOUNTING • objective

A company uses the double-entry system of accounting. If the company purchases an asset for ₦1,000,000 and also pays ₦200,000 in cash, what is the journal entry for the purchase?

Answer Options

A. Debit Asset ₦1,000,000, Credit Cash ₦1,000,000
Correct Answer B. Debit Asset ₦1,000,000, Credit Cash ₦200,000
C. Debit Asset ₦1,000,000, Credit Cash ₦800,000
D. Debit Asset ₦1,000,000, Credit Cash ₦1,200,000
Correct Answer
B
Correct Option:
Debit Asset ₦1,000,000, Credit Cash ₦200,000

About This Question

This is Post Utme Veritas University 2020 Accounting Question 14. It is one of the objective questions from the 2020 Post Utme Veritas University Accounting examination.

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