Post Utme Afe Babalola University 2017 Accounting Question 6

Practice objective / multiple choice question 6 from the 2017 Post Utme Afe Babalola University Accounting examination.

Post Utme Afe Babalola University 2017 Accounting Objective / Multiple Choice
Question 6 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2017 • ACCOUNTING • objective

A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 10,000. Prepare the journal entry to record the issue of shares.

Answer Options

Correct Answer A. Debit Share Capital £ 100,000, Credit Share Premium £ 50,000, Credit Issue Expenses £ 10,000
B. Debit Share Capital £ 100,000, Credit Share Premium £ 50,000, Debit Issue Expenses £ 10,000
C. Debit Share Capital £ 100,000, Credit Share Premium £ 50,000
D. Debit Share Capital £ 100,000, Debit Share Premium £ 50,000, Credit Issue Expenses £ 10,000
Correct Answer
A
Correct Option:
Debit Share Capital £ 100,000, Credit Share Premium £ 50,000, Credit Issue Expenses £ 10,000

About This Question

This is Post Utme Afe Babalola University 2017 Accounting Question 6. It is one of the objective questions from the 2017 Post Utme Afe Babalola University Accounting examination.

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