Post Utme Crawford University 2022 Accounting Question 1

Practice objective / multiple choice question 1 from the 2022 Post Utme Crawford University Accounting examination.

Post Utme Crawford University 2022 Accounting Objective / Multiple Choice
Question 1 POST_UTME_CRAWFORD_UNIVERSITY • 2022 • ACCOUNTING • objective

A company issued 10,000 shares of 1 par value at a premium of 2 per share. The proceeds from the issue were used to pay off a loan of 50,000. Prepare the journal entry to record the issue of shares.

Answer Options

Correct Answer A. Debit Cash 20,000, Credit Share Capital 20,000
B. Debit Share Capital 20,000, Credit Loan 50,000
C. Debit Cash 20,000, Credit Loan 50,000
D. Debit Share Capital 20,000, Credit Cash 20,000
Correct Answer
A
Correct Option:
Debit Cash 20,000, Credit Share Capital 20,000

About This Question

This is Post Utme Crawford University 2022 Accounting Question 1. It is one of the objective questions from the 2022 Post Utme Crawford University Accounting examination.

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