Post Utme Pan Atlantic University 2024 Accounting Question 2

Practice objective / multiple choice question 2 from the 2024 Post Utme Pan Atlantic University Accounting examination.

Post Utme Pan Atlantic University 2024 Accounting Objective / Multiple Choice
Question 2 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2024 • ACCOUNTING • objective

A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The issue expenses amount to ₦10,000. Prepare the journal entry to record the issue of shares.

Answer Options

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

About This Question

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

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