Post Utme Wellspring University 2023 Accounting Question 1

Practice objective / multiple choice question 1 from the 2023 Post Utme Wellspring University Accounting examination.

Post Utme Wellspring University 2023 Accounting Objective / Multiple Choice
Question 1 POST_UTME_WELLSPRING_UNIVERSITY • 2023 • ACCOUNTING • objective

A company's cash book shows a balance of ₦120,000. The bank statement shows a balance of ₦130,000. The difference is due to a bank overdraft of ₦10,000. What is the correct journal entry to record the bank overdraft?

Answer Options

Correct Answer A. Debit Cash ₦10,000, Credit Bank Overdraft ₦10,000
B. Debit Bank Overdraft ₦10,000, Credit Cash ₦10,000
C. Debit Cash ₦10,000, Credit Bank ₦10,000
D. Debit Bank ₦10,000, Credit Cash ₦10,000
Correct Answer
A
Correct Option:
Debit Cash ₦10,000, Credit Bank Overdraft ₦10,000

About This Question

This is Post Utme Wellspring University 2023 Accounting Question 1. It is one of the objective questions from the 2023 Post Utme Wellspring University Accounting examination.

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