Post Utme Osustech 2024 Accounting Question 2

Practice objective / multiple choice question 2 from the 2024 Post Utme Osustech Accounting examination.

Post Utme Osustech 2024 Accounting Objective / Multiple Choice
Question 2 POST_UTME_OSUSTECH • 2024 • ACCOUNTING • objective

A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. The company also issued 5,000 debentures of ₦100 each. Prepare the journal entry to record the issue of shares and debentures.

Answer Options

A. Debit Share Capital ₦5,000,000; Credit Premium on Issue ₦2,500,000; Credit Debentures ₦5,000,000
B. Debit Share Capital ₦5,000,000; Credit Premium on Issue ₦2,500,000; Credit Cash ₦5,000,000
Correct Answer C. Debit Share Capital ₦5,000,000; Credit Premium on Issue ₦2,500,000; Credit Debentures ₦5,000,000
D. Debit Share Capital ₦5,000,000; Credit Premium on Issue ₦2,500,000; Credit Cash ₦5,000,000
Correct Answer
C
Correct Option:
Debit Share Capital ₦5,000,000; Credit Premium on Issue ₦2,500,000; Credit Debentures ₦5,000,000

About This Question

This is Post Utme Osustech 2024 Accounting Question 2. It is one of the objective questions from the 2024 Post Utme Osustech Accounting examination.

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