Post Utme Ksu 2020 Accounting Question 2

Practice objective / multiple choice question 2 from the 2020 Post Utme Ksu Accounting examination.

Post Utme Ksu 2020 Accounting Objective / Multiple Choice

Question 2 POST_UTME_KSU • 2020 • ACCOUNTING • objective

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

A. ₦50,000 credit to Share Capital and ₦5,000 debit to Share Premium

B. ₦50,000 credit to Share Premium and ₦5,000 debit to Share Capital

Correct Answer C. ₦50,000 credit to Share Capital and ₦5,000 debit to Issue Expenses

D. ₦50,000 credit to Share Premium and ₦5,000 debit to Issue Expenses

Correct Answer

Correct Option:

₦50,000 credit to Share Capital and ₦5,000 debit to Issue Expenses

This is Post Utme Ksu 2020 Accounting Question 2. It is one of the objective questions from the 2020 Post Utme Ksu Accounting examination.

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