Post Utme Mountain Top University 2020 Accounting Question 16

Practice objective / multiple choice question 16 from the 2020 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2020 Accounting Objective / Multiple Choice
Question 16 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2020 • ACCOUNTING • objective

A company issued 10,000 shares of ₠ 1 each at a premium of ₠ 2 per share. The shares were issued for ₠ 12,000 cash. Prepare the journal entry for the issue of shares.

Answer Options

Correct Answer A. Debit Share Capital ₠ 10,000, Credit Cash ₠ 10,000
B. Debit Share Capital ₠ 12,000, Credit Cash ₠ 10,000
C. Debit Share Capital ₠ 10,000, Credit Cash ₠ 12,000
D. Debit Share Capital ₠ 12,000, Credit Cash ₠ 12,000
Correct Answer
A
Correct Option:
Debit Share Capital ₠ 10,000, Credit Cash ₠ 10,000

About This Question

This is Post Utme Mountain Top University 2020 Accounting Question 16. It is one of the objective questions from the 2020 Post Utme Mountain Top University Accounting examination.

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