Post Utme Aaua 2020 Accounting Question 6

Practice objective / multiple choice question 6 from the 2020 Post Utme Aaua Accounting examination.

Post Utme Aaua 2020 Accounting Objective / Multiple Choice
Question 6 POST_UTME_AAUA • 2020 • ACCOUNTING • objective

A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 0.50 per share. The issue expenses were ₦ 5,000. Prepare the journal entry for the issue of shares.

Answer Options

Correct Answer A. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 5,000, Credit Issue Expenses ₦ 5,000
B. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 5,000
C. Debit Share Capital ₦ 10,000, Credit Issue Expenses ₦ 5,000
D. Debit Share Premium ₦ 5,000, Credit Issue Expenses ₦ 5,000
Correct Answer
A
Correct Option:
Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 5,000, Credit Issue Expenses ₦ 5,000

About This Question

This is Post Utme Aaua 2020 Accounting Question 6. It is one of the objective questions from the 2020 Post Utme Aaua Accounting examination.

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