Post Utme Mountain Top University 2019 Accounting Question 38

Practice objective / multiple choice question 38 from the 2019 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2019 Accounting Objective / Multiple Choice
Question 38 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2019 • ACCOUNTING • objective

A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 10,000. Prepare the journal entry to record the issue of shares.

Answer Options

Correct Answer A. Debit Share Capital ₦ 120,000, Credit Share Premium ₦ 20,000, Credit Issue Expenses ₦ 10,000
B. Debit Share Capital ₦ 100,000, Credit Share Premium ₦ 20,000, Credit Issue Expenses ₦ 10,000
C. Debit Share Capital ₦ 120,000, Credit Share Premium ₦ 20,000
D. Debit Share Capital ₦ 100,000, Credit Share Premium ₦ 20,000
Correct Answer
A
Correct Option:
Debit Share Capital ₦ 120,000, Credit Share Premium ₦ 20,000, Credit Issue Expenses ₦ 10,000

About This Question

This is Post Utme Mountain Top University 2019 Accounting Question 38. It is one of the objective questions from the 2019 Post Utme Mountain Top University Accounting examination.

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