Post Utme Elizade University 2020 Accounting Question 36

Practice objective / multiple choice question 36 from the 2020 Post Utme Elizade University Accounting examination.

Post Utme Elizade University 2020 Accounting Objective / Multiple Choice
Question 36 POST_UTME_ELIZADE_UNIVERSITY • 2020 • ACCOUNTING • objective

A company issued 5,000 shares of £1 each at a premium of £0.50 per share. The issue expenses were £2,500. Prepare the journal entry to record the issue of the shares.

Answer Options

Correct Answer A. Debit Share Capital £15,000, Credit Share Premium £2,500, Credit Issue Expenses £2,500
B. Debit Share Capital £15,000, Credit Share Premium £12,500, Credit Issue Expenses £2,500
C. Debit Share Capital £15,000, Credit Share Premium £12,500, Debit Issue Expenses £2,500
D. Debit Share Capital £12,500, Credit Share Premium £15,000, Credit Issue Expenses £2,500
Correct Answer
A
Correct Option:
Debit Share Capital £15,000, Credit Share Premium £2,500, Credit Issue Expenses £2,500

About This Question

This is Post Utme Elizade University 2020 Accounting Question 36. It is one of the objective questions from the 2020 Post Utme Elizade University Accounting examination.

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