Post Utme Bowen University 2025 Accounting Question 1

Practice objective / multiple choice question 1 from the 2025 Post Utme Bowen University Accounting examination.

Post Utme Bowen University 2025 Accounting Objective / Multiple Choice
Question 1 POST_UTME_BOWEN_UNIVERSITY • 2025 • ACCOUNTING • objective

A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 5,000. Prepare the journal entry to record the issue of shares.

Answer Options

A. Debit Share Capital £ 10,000, Credit Cash £ 10,000
Correct Answer B. Debit Share Capital £ 10,000, Credit Cash £ 10,500
C. Debit Share Capital £ 10,500, Credit Cash £ 10,000
D. Debit Share Capital £ 10,000, Credit Cash £ 15,000
Correct Answer
B
Correct Option:
Debit Share Capital £ 10,000, Credit Cash £ 10,500

About This Question

This is Post Utme Bowen University 2025 Accounting Question 1. It is one of the objective questions from the 2025 Post Utme Bowen University Accounting examination.

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