Post Utme Mountain Top University 2018 Accounting Question 6

Practice objective / multiple choice question 6 from the 2018 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2018 Accounting Objective / Multiple Choice
Question 6 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2018 • ACCOUNTING • objective

A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2. The shares were subscribed for by the public in full. Prepare the journal entry to record the issue of shares.

Answer Options

Correct Answer A. Debit Share Capital ₦ 20,000, Credit Cash ₦ 20,000
B. Debit Share Capital ₦ 10,000, Credit Cash ₦ 10,000
C. Debit Share Capital ₦ 20,000, Credit Share Premium ₦ 20,000
D. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 10,000
Correct Answer
A
Correct Option:
Debit Share Capital ₦ 20,000, Credit Cash ₦ 20,000

About This Question

This is Post Utme Mountain Top University 2018 Accounting Question 6. It is one of the objective questions from the 2018 Post Utme Mountain Top University Accounting examination.

View More Post Utme Mountain Top University 2018 Accounting Questions More Post Utme Mountain Top University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support