Post Utme Noun 2019 Accounting Question 16

Practice objective / multiple choice question 16 from the 2019 Post Utme Noun Accounting examination.

Post Utme Noun 2019 Accounting Objective / Multiple Choice
Question 16 POST_UTME_NOUN • 2019 • ACCOUNTING • objective

A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Prepare the journal entries to record the issue of debentures and the interest accrued on them at the end of the first year.

Answer Options

Correct Answer A. Debit Discount on Issue of Debentures ₦50,000, Credit Cash ₦450,000
B. Debit Discount on Issue of Debentures ₦50,000, Credit Cash ₦500,000
C. Debit Discount on Issue of Debentures ₦50,000, Credit Cash ₦475,000
D. Debit Discount on Issue of Debentures ₦50,000, Credit Cash ₦525,000
Correct Answer
A
Correct Option:
Debit Discount on Issue of Debentures ₦50,000, Credit Cash ₦450,000

About This Question

This is Post Utme Noun 2019 Accounting Question 16. It is one of the objective questions from the 2019 Post Utme Noun Accounting examination.

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