Post Utme Veritas University 2019 Accounting Question 23

Practice objective / multiple choice question 23 from the 2019 Post Utme Veritas University Accounting examination.

Post Utme Veritas University 2019 Accounting Objective / Multiple Choice
Question 23 POST_UTME_VERITAS_UNIVERSITY • 2019 • ACCOUNTING • objective

A company issued 10-year debentures of ₦10,000 each at a discount of 5%. The debentures are redeemable at par. Prepare the journal entry to record the issue of debentures.

Answer Options

Correct Answer A. Debit Debenture Discount 5,000, Credit Cash 95,000
B. Debit Debenture Discount 5,000, Credit Cash 100,000
C. Debit Cash 95,000, Credit Debenture Discount 5,000
D. Debit Cash 100,000, Credit Debenture Discount 5,000
Correct Answer
A
Correct Option:
Debit Debenture Discount 5,000, Credit Cash 95,000

About This Question

This is Post Utme Veritas University 2019 Accounting Question 23. It is one of the objective questions from the 2019 Post Utme Veritas University Accounting examination.

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