Post Utme Futa 2025 Accounting Question 37

Practice objective / multiple choice question 37 from the 2025 Post Utme Futa Accounting examination.

Post Utme Futa 2025 Accounting Objective / Multiple Choice
Question 37 POST_UTME_FUTA • 2025 • ACCOUNTING • objective

A company issued 5,000 shares of 1 par value at a premium of 2 per share. The proceeds from the issue were credited to a 'Share Capital' account. Prepare the journal entry for the issue of these shares.

Answer Options

A. Debit Share Capital ₦10,000, Credit Cash ₦10,000
Correct Answer B. Debit Share Capital ₦10,000, Credit Cash ₦12,000
C. Debit Share Capital ₦12,000, Credit Cash ₦10,000
D. Debit Share Capital ₦12,000, Credit Cash ₦12,000
Correct Answer
B
Correct Option:
Debit Share Capital ₦10,000, Credit Cash ₦12,000

About This Question

This is Post Utme Futa 2025 Accounting Question 37. It is one of the objective questions from the 2025 Post Utme Futa Accounting examination.

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