Post Utme Veritas University 2019 Accounting Question 21

Practice objective / multiple choice question 21 from the 2019 Post Utme Veritas University Accounting examination.

Post Utme Veritas University 2019 Accounting Objective / Multiple Choice
Question 21 POST_UTME_VERITAS_UNIVERSITY • 2019 • ACCOUNTING • objective

A company issued 5,000 shares of 10 par value at a premium of 5 per share. The proceeds from the issue of shares were credited to a 'Share Capital' account. Prepare the journal entry to record the issue of shares.

Answer Options

Correct Answer A. Debit Share Capital 50,000, Credit Cash 50,000
B. Debit Share Capital 50,000, Credit Cash 25,000
C. Debit Share Capital 25,000, Credit Cash 50,000
D. Debit Share Capital 25,000, Credit Cash 25,000
Correct Answer
A
Correct Option:
Debit Share Capital 50,000, Credit Cash 50,000

About This Question

This is Post Utme Veritas University 2019 Accounting Question 21. It is one of the objective questions from the 2019 Post Utme Veritas University Accounting examination.

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