Post Utme Futo 2023 Accounting Question 16

Practice objective / multiple choice question 16 from the 2023 Post Utme Futo Accounting examination.

Post Utme Futo 2023 Accounting Objective / Multiple Choice
Question 16 POST_UTME_FUTO • 2023 • ACCOUNTING • objective

A company issued 10,000 shares of ₠ 1 each at a premium of ₠ 2 per share. The issue expenses were ₠ 20,000. Prepare the journal entry for the issue of shares.

Answer Options

Correct Answer A. Debit Share Capital ₠ 120,000, Credit Cash ₠ 100,000, Credit Issue Expenses ₠ 20,000
B. Debit Share Capital ₠ 100,000, Credit Cash ₠ 120,000, Credit Issue Expenses ₠ 20,000
C. Debit Share Capital ₠ 120,000, Credit Cash ₠ 100,000
D. Debit Share Capital ₠ 100,000, Credit Cash ₠ 120,000
Correct Answer
A
Correct Option:
Debit Share Capital ₠ 120,000, Credit Cash ₠ 100,000, Credit Issue Expenses ₠ 20,000

About This Question

This is Post Utme Futo 2023 Accounting Question 16. It is one of the objective questions from the 2023 Post Utme Futo Accounting examination.

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