Post Utme Futa 2025 Accounting Question 19

Practice objective / multiple choice question 19 from the 2025 Post Utme Futa Accounting examination.

Post Utme Futa 2025 Accounting Objective / Multiple Choice

Question 19 POST_UTME_FUTA • 2025 • ACCOUNTING • objective

A company issued 5,000 debentures of £ 100 each at a discount of £ 5 per debenture. The issue expenses were £ 2,000. Prepare the journal entry to record the issue of debentures.

A. Debit Debenture Capital £ 500,000, Credit Cash £ 475,000

B. Debit Debenture Capital £ 500,000, Credit Cash £ 480,000

C. Debit Debenture Capital £ 480,000, Credit Cash £ 475,000

Correct Answer D. Debit Debenture Capital £ 500,000, Credit Cash £ 475,000, Credit Issue Expenses £ 2,000

Correct Answer

Correct Option:

Debit Debenture Capital £ 500,000, Credit Cash £ 475,000, Credit Issue Expenses £ 2,000

This is Post Utme Futa 2025 Accounting Question 19. It is one of the objective questions from the 2025 Post Utme Futa Accounting examination.

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