Post Utme Wellspring University 2020 Accounting Question 1

Practice objective / multiple choice question 1 from the 2020 Post Utme Wellspring University Accounting examination.

Post Utme Wellspring University 2020 Accounting Objective / Multiple Choice
Question 1 POST_UTME_WELLSPRING_UNIVERSITY • 2020 • ACCOUNTING • objective

A company uses the double-entry system of accounting. If the company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid', what is the correct journal entry to record the adjustment for the difference?

Answer Options

Correct Answer A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
C. ₦5,000 debit to Rent Received and ₦5,000 credit to Profit and Loss
D. ₦5,000 debit to Profit and Loss and ₦5,000 credit to Rent Received
Correct Answer
A
Correct Option:
₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid

About This Question

This is Post Utme Wellspring University 2020 Accounting Question 1. It is one of the objective questions from the 2020 Post Utme Wellspring University Accounting examination.

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