Post Utme Mountain Top University 2025 Accounting Question 20

Practice objective / multiple choice question 20 from the 2025 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2025 Accounting Objective / Multiple Choice
Question 20 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2025 • ACCOUNTING • objective

A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. The shares were issued for ₦1,000,000. Prepare the journal entry for the issue of shares, assuming the company uses the cost method of accounting.

Answer Options

Correct Answer A. Debit Share Capital ₦1,000,000, Credit Cash ₦1,000,000
B. Debit Share Capital ₦1,000,000, Credit Cash ₦0,500,000
C. Debit Share Capital ₦0,500,000, Credit Cash ₦1,000,000
D. Debit Share Capital ₦0,500,000, Credit Cash ₦0,500,000
Correct Answer
A
Correct Option:
Debit Share Capital ₦1,000,000, Credit Cash ₦1,000,000

About This Question

This is Post Utme Mountain Top University 2025 Accounting Question 20. It is one of the objective questions from the 2025 Post Utme Mountain Top University Accounting examination.

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