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JAMB Accounting 2016 Objective — Question 33

Question 33 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2016 Objective paper, with the correct answer and a full explanation.

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33. A company has 5% debentures of #100,000, ordinary share capital of #900,000, and preference shares of #250,000. The debenture interest would amount to (a) #5,000 (b) #10,000 (c) #12,500 (d) #100,000

  • A. #5,000Correct
  • B. #10,000
  • C. #12,500
  • D. #100,000

Explanation

Debenture interest is 5% of #100,000 which is #5,000.

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