JAMB Accounting 2023 Objective — Question 16

Question 16 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2023 Objective paper, with the correct answer and a full explanation.

The accounting entry for money paid on shares A.

A. Dr: shares a/c Cr: customer is a/c
B. Dr: Cash a/c Cr: Customer a/c
C. Dr: cash a/c Cr: Share is a/cCorrect
D. Dr: Shares a/c Cr: cash a/c

Explanation

For money paid for shares, the accounting entry with the company issuing the share is Dr: cash/bank a/c Cr: shares account.

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