Post Utme Ksu 2023 Accounting Question 9

Practice objective / multiple choice question 9 from the 2023 Post Utme Ksu Accounting examination.

Post Utme Ksu 2023 Accounting Objective / Multiple Choice
Question 9 POST_UTME_KSU • 2023 • ACCOUNTING • objective

A company issued 5,000 debentures of ₦ 100 each at a premium of ₦ 5 per debenture. The issue expenses were ₦ 5,000. Prepare the journal entry for the issue of debentures.

Answer Options

Correct Answer A. Debit Debenture Redemption Fund ₦ 525,000, Credit Cash ₦ 500,000, Credit Debenture Discount ₦ 25,000
B. Debit Debenture Redemption Fund ₦ 525,000, Credit Cash ₦ 500,000, Credit Issue Expenses ₦ 25,000
C. Debit Debenture Redemption Fund ₦ 500,000, Credit Cash ₦ 525,000, Credit Issue Expenses ₦ 25,000
D. Debit Debenture Redemption Fund ₦ 500,000, Credit Cash ₦ 525,000, Credit Debenture Discount ₦ 25,000
Correct Answer
A
Correct Option:
Debit Debenture Redemption Fund ₦ 525,000, Credit Cash ₦ 500,000, Credit Debenture Discount ₦ 25,000

About This Question

This is Post Utme Ksu 2023 Accounting Question 9. It is one of the objective questions from the 2023 Post Utme Ksu Accounting examination.

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