Post Utme Osustech 2017 Accounting Question 3

Practice objective / multiple choice question 3 from the 2017 Post Utme Osustech Accounting examination.

Post Utme Osustech 2017 Accounting Objective / Multiple Choice
Question 3 POST_UTME_OSUSTECH • 2017 • ACCOUNTING • objective

A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Prepare the necessary journal entry.

Answer Options

A. Debit Share Capital ₦10,000, Credit Cash ₦10,000
Correct Answer B. Debit Share Capital ₦10,000, Credit Premium on Shares ₦5,000
C. Debit Share Capital ₦15,000, Credit Cash ₦15,000
D. Debit Premium on Shares ₦5,000, Credit Share Capital ₦10,000
Correct Answer
B
Correct Option:
Debit Share Capital ₦10,000, Credit Premium on Shares ₦5,000

About This Question

This is Post Utme Osustech 2017 Accounting Question 3. It is one of the objective questions from the 2017 Post Utme Osustech Accounting examination.

View More Post Utme Osustech 2017 Accounting Questions More Post Utme Osustech Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support