Post Utme Igbinedion University 2017 Accounting Question 11

Practice objective / multiple choice question 11 from the 2017 Post Utme Igbinedion University Accounting examination.

Post Utme Igbinedion University 2017 Accounting Objective / Multiple Choice
Question 11 POST_UTME_IGBINEDION_UNIVERSITY • 2017 • ACCOUNTING • objective

A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 0.50 per share. The issue expenses were ₦ 5,000. Prepare the journal entry to record the issue of shares.

Answer Options

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

About This Question

This is Post Utme Igbinedion University 2017 Accounting Question 11. It is one of the objective questions from the 2017 Post Utme Igbinedion University Accounting examination.

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