Post Utme Ksu 2020 Accounting Question 5

Practice objective / multiple choice question 5 from the 2020 Post Utme Ksu Accounting examination.

Post Utme Ksu 2020 Accounting Objective / Multiple Choice

Question 5 POST_UTME_KSU • 2020 • ACCOUNTING • objective

A company issues 5,000 debentures of ₦100 each at a premium of ₦20 per debenture. The issue expenses amount to ₦2,000. Prepare the journal entry to record the issue of debentures.

A. ₦500,000 credit to Debenture Capital and ₦2,000 debit to Issue Expenses

B. ₦500,000 credit to Debenture Capital and ₦2,000 credit to Debenture Premium

C. ₦500,000 credit to Debenture Premium and ₦2,000 debit to Issue Expenses

Correct Answer D. ₦500,000 credit to Debenture Capital and ₦2,000 credit to Debenture Premium

Correct Answer

Correct Option:

₦500,000 credit to Debenture Capital and ₦2,000 credit to Debenture Premium

This is Post Utme Ksu 2020 Accounting Question 5. It is one of the objective questions from the 2020 Post Utme Ksu Accounting examination.

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