Post Utme Aaua 2019 Accounting Question 6

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

Post Utme Aaua 2019 Accounting Objective / Multiple Choice
Question 6 POST_UTME_AAUA • 2019 • ACCOUNTING • objective

A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5% debentures of ₦100 each. Prepare the journal entries for the issue of shares and debentures.

Answer Options

A. Debit Share Capital ₦100,000, Credit Cash ₦100,000
B. Debit Share Capital ₦500,000, Credit Cash ₦500,000
Correct Answer C. Debit Share Capital ₦500,000, Credit Cash ₦500,000 and Debit Debentures ₦500,000
D. Debit Share Capital ₦500,000, Credit Cash ₦500,000 and Credit Debentures ₦500,000
Correct Answer
C
Correct Option:
Debit Share Capital ₦500,000, Credit Cash ₦500,000 and Debit Debentures ₦500,000

About This Question

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

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