Post Utme Crawford University 2022 Accounting Question 4

Practice objective / multiple choice question 4 from the 2022 Post Utme Crawford University Accounting examination.

Post Utme Crawford University 2022 Accounting Objective / Multiple Choice
Question 4 POST_UTME_CRAWFORD_UNIVERSITY • 2022 • ACCOUNTING • objective

A company issued 1,000 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 2,000, Credit Share Capital 2,000
B. Debit Share Capital 2,000, Credit Loan 50,000
C. Debit Cash 2,000, Credit Loan 50,000
D. Debit Share Capital 2,000, Credit Cash 2,000
Correct Answer
A
Correct Option:
Debit Cash 2,000, Credit Share Capital 2,000

About This Question

This is Post Utme Crawford University 2022 Accounting Question 4. It is one of the objective questions from the 2022 Post Utme Crawford University Accounting examination.

View More Post Utme Crawford University 2022 Accounting Questions More Post Utme Crawford 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