Post Utme Covenant University 2020 Accounting Question 16

Practice objective / multiple choice question 16 from the 2020 Post Utme Covenant University Accounting examination.

Post Utme Covenant University 2020 Accounting Objective / Multiple Choice
Question 16 POST_UTME_COVENANT_UNIVERSITY • 2020 • ACCOUNTING • objective

A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Prepare the journal entries to record the issue of debentures and the subsequent redemption.

Answer Options

A. Debit Cash ₦450,000, Credit Debentures ₦500,000
Correct Answer B. Debit Debentures ₦500,000, Credit Cash ₦450,000
C. Debit Cash ₦500,000, Credit Debentures ₦450,000
D. Debit Debentures ₦450,000, Credit Cash ₦500,000
Correct Answer
B
Correct Option:
Debit Debentures ₦500,000, Credit Cash ₦450,000

About This Question

This is Post Utme Covenant University 2020 Accounting Question 16. It is one of the objective questions from the 2020 Post Utme Covenant University Accounting examination.

View More Post Utme Covenant University 2020 Accounting Questions More Post Utme Covenant University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support