Post Utme Achievers University 2020 Accounting Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Achievers University Accounting examination.

Post Utme Achievers University 2020 Accounting Objective / Multiple Choice
Question 21 POST_UTME_ACHIEVERS_UNIVERSITY • 2020 • ACCOUNTING • objective

A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 50,000. Prepare the journal entry for the issue of shares.

Answer Options

A. Debit Share Capital ₦ 120,000, Credit Cash ₦ 100,000, Credit Issue Expenses ₦ 20,000
B. Debit Share Capital ₦ 100,000, Credit Cash ₦ 120,000, Credit Issue Expenses ₦ 20,000
Correct Answer C. Debit Share Capital ₦ 120,000, Credit Cash ₦ 100,000, Credit Issue Expenses ₦ 50,000
D. Debit Share Capital ₦ 100,000, Credit Cash ₦ 120,000, Credit Issue Expenses ₦ 50,000
Correct Answer
C
Correct Option:
Debit Share Capital ₦ 120,000, Credit Cash ₦ 100,000, Credit Issue Expenses ₦ 50,000

About This Question

This is Post Utme Achievers University 2020 Accounting Question 21. It is one of the objective questions from the 2020 Post Utme Achievers University Accounting examination.

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