Post Utme Al Hikmah University 2021 Accounting Question 37

Practice objective / multiple choice question 37 from the 2021 Post Utme Al Hikmah University Accounting examination.

Post Utme Al Hikmah University 2021 Accounting Objective / Multiple Choice
Question 37 POST_UTME_AL-HIKMAH_UNIVERSITY • 2021 • ACCOUNTING • objective

A company issued 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company received ₦15,000 in cash, what is the correct journal entry?

Answer Options

A. ₦10,000 debit to Cash and ₦5,000 credit to Share Premium
Correct Answer B. ₦15,000 debit to Cash and ₦5,000 credit to Share Premium
C. ₦10,000 debit to Cash and ₦5,000 credit to Share Capital
D. ₦15,000 debit to Cash and ₦5,000 credit to Share Capital
Correct Answer
B
Correct Option:
₦15,000 debit to Cash and ₦5,000 credit to Share Premium

About This Question

This is Post Utme Al Hikmah University 2021 Accounting Question 37. It is one of the objective questions from the 2021 Post Utme Al Hikmah University Accounting examination.

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