Post Utme Greenfield University 2023 Accounting Question 4

Practice objective / multiple choice question 4 from the 2023 Post Utme Greenfield University Accounting examination.

Post Utme Greenfield University 2023 Accounting Objective / Multiple Choice
Question 4 POST_UTME_GREENFIELD_UNIVERSITY • 2023 • ACCOUNTING • objective

A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The company receives a total of ₦15,000 from the sale of shares. What is the correct journal entry to record the issue of shares?

Answer Options

Correct Answer A. Debit Share Capital ₦15,000, Credit Cash ₦15,000
B. Debit Share Premium ₦5,000, Credit Share Capital ₦10,000
C. Debit Cash ₦15,000, Credit Share Capital ₦10,000
D. Debit Share Premium ₦5,000, Credit Cash ₦5,000
Correct Answer
A
Correct Option:
Debit Share Capital ₦15,000, Credit Cash ₦15,000

About This Question

This is Post Utme Greenfield University 2023 Accounting Question 4. It is one of the objective questions from the 2023 Post Utme Greenfield University Accounting examination.

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