Post Utme Mountain Top University 2019 Accounting Question 40

Practice objective / multiple choice question 40 from the 2019 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2019 Accounting Objective / Multiple Choice
Question 40 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2019 • ACCOUNTING • objective

A company issued 5,000, 10% debentures of ₦ 100 each at a premium of ₦ 20 per debenture. The issue expenses were ₦ 5,000. Prepare the journal entry to record the issue of debentures.

Answer Options

Correct Answer A. Debit Debenture Capital ₦ 500,000, Credit Debenture Premium ₦ 100,000, Credit Issue Expenses ₦ 5,000
B. Debit Debenture Capital ₦ 500,000, Credit Debenture Premium ₦ 100,000
C. Debit Debenture Capital ₦ 500,000, Credit Debenture Premium ₦ 100,000, Credit Issue Expenses ₦ 5,000
D. Debit Debenture Capital ₦ 500,000, Credit Debenture Premium ₦ 100,000, Debit Issue Expenses ₦ 5,000
Correct Answer
A
Correct Option:
Debit Debenture Capital ₦ 500,000, Credit Debenture Premium ₦ 100,000, Credit Issue Expenses ₦ 5,000

About This Question

This is Post Utme Mountain Top University 2019 Accounting Question 40. It is one of the objective questions from the 2019 Post Utme Mountain Top University Accounting examination.

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