Post Utme Noun 2019 Accounting Question 19

Practice objective / multiple choice question 19 from the 2019 Post Utme Noun Accounting examination.

Post Utme Noun 2019 Accounting Objective / Multiple Choice
Question 19 POST_UTME_NOUN • 2019 • ACCOUNTING • objective

A company issued 10,000, 12% preference shares of ₦10 each at a premium of 20%. The company also issued 5,000 ordinary shares of ₦10 each at a premium of 10%. Prepare the journal entries to record the issue of preference shares and ordinary shares.

Answer Options

Correct Answer A. Debit Premium on Issue of Preference Shares ₦200,000, Credit Cash ₦1,000,000
B. Debit Premium on Issue of Preference Shares ₦200,000, Credit Cash ₦1,050,000
C. Debit Premium on Issue of Preference Shares ₦200,000, Credit Cash ₦1,100,000
D. Debit Premium on Issue of Preference Shares ₦200,000, Credit Cash ₦1,150,000
Correct Answer
A
Correct Option:
Debit Premium on Issue of Preference Shares ₦200,000, Credit Cash ₦1,000,000

About This Question

This is Post Utme Noun 2019 Accounting Question 19. It is one of the objective questions from the 2019 Post Utme Noun Accounting examination.

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