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JAMB Accounting 2017 Objective — Question 33

Question 33 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2017 Objective paper, with the correct answer and a full explanation.

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

Explanation

Debenture interest = 5% of #100,000 = #5,000.

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