Post Utme Babcock University 2021 Accounting Question 38

Practice objective / multiple choice question 38 from the 2021 Post Utme Babcock University Accounting examination.

Post Utme Babcock University 2021 Accounting Objective / Multiple Choice
Question 38 POST_UTME_BABCOCK_UNIVERSITY • 2021 • ACCOUNTING • objective

A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The proceeds from the issue of shares are credited to the 'Share Capital' account. What is the correct journal entry to record the issue of shares?

Answer Options

A. Debit Share Capital ₦10,000, Credit Cash ₦5,000
Correct Answer B. Debit Share Capital ₦10,000, Credit Cash ₦15,000
C. Debit Share Capital ₦15,000, Credit Cash ₦10,000
D. Debit Cash ₦10,000, Credit Share Capital ₦15,000
Correct Answer
B
Correct Option:
Debit Share Capital ₦10,000, Credit Cash ₦15,000

About This Question

This is Post Utme Babcock University 2021 Accounting Question 38. It is one of the objective questions from the 2021 Post Utme Babcock University Accounting examination.

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