Post Utme Elizade University 2023 Accounting Question 1

Practice objective / multiple choice question 1 from the 2023 Post Utme Elizade University Accounting examination.

Post Utme Elizade University 2023 Accounting Objective / Multiple Choice
Question 1 POST_UTME_ELIZADE_UNIVERSITY • 2023 • 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 for 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 £ 10,000, Credit Cash £ 10,000, Debit Issue Expenses £ 5,000
D. Debit Share Capital £ 10,000, Credit Cash £ 10,500, Debit Issue Expenses £ 5,000
Correct Answer
B
Correct Option:
Debit Share Capital £ 10,000, Credit Cash £ 10,500

About This Question

This is Post Utme Elizade University 2023 Accounting Question 1. It is one of the objective questions from the 2023 Post Utme Elizade University Accounting examination.

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