Post Utme Unn 2025 Accounting Question 31

Practice objective / multiple choice question 31 from the 2025 Post Utme Unn Accounting examination.

Post Utme Unn 2025 Accounting Objective / Multiple Choice
Question 31 POST_UTME_UNN • 2025 • ACCOUNTING • objective

A company issues 10,000 shares of ₠ 1 each at a premium of ₠ 2 per share. The issue expenses amount to ₠ 10,000. Prepare the journal entry for the issue of shares.

Answer Options

Correct Answer A. Debit Share Capital ₠ 120,000, Credit Cash ₠ 100,000, Credit Issue Expenses ₠ 20,000
B. Debit Share Capital ₠ 100,000, Credit Cash ₠ 120,000, Credit Issue Expenses ₠ 20,000
C. Debit Share Capital ₠ 120,000, Credit Cash ₠ 100,000, Credit Issue Expenses ₠ 10,000
D. Debit Share Capital ₠ 100,000, Credit Cash ₠ 120,000, Credit Issue Expenses ₠ 10,000
Correct Answer
A
Correct Option:
Debit Share Capital ₠ 120,000, Credit Cash ₠ 100,000, Credit Issue Expenses ₠ 20,000

About This Question

This is Post Utme Unn 2025 Accounting Question 31. It is one of the objective questions from the 2025 Post Utme Unn Accounting examination.

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