Post Utme Ui 2021 Accounting Question 39

Practice objective / multiple choice question 39 from the 2021 Post Utme Ui Accounting examination.

Post Utme Ui 2021 Accounting Objective / Multiple Choice
Question 39 POST_UTME_UI • 2021 • ACCOUNTING • objective

A company issued 5,000 10% debentures of ₠ 100 each at a discount of ₠ 5 per debenture. The issue expenses were ₠ 5,000. Prepare the journal entry for the issue of debentures.

Answer Options

A. Debit Debenture Capital ₠ 450,000, Credit Cash ₠ 475,000
Correct Answer B. Debit Debenture Capital ₠ 450,000, Credit Cash ₠ 470,000
C. Debit Debenture Capital ₠ 450,000, Credit Cash ₠ 480,000
D. Debit Debenture Capital ₠ 450,000, Credit Cash ₠ 490,000
Correct Answer
B
Correct Option:
Debit Debenture Capital ₠ 450,000, Credit Cash ₠ 470,000

About This Question

This is Post Utme Ui 2021 Accounting Question 39. It is one of the objective questions from the 2021 Post Utme Ui Accounting examination.

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