Post Utme Esut 2024 Accounting Question 20

Practice objective / multiple choice question 20 from the 2024 Post Utme Esut Accounting examination.

Post Utme Esut 2024 Accounting Objective / Multiple Choice

Question 20 POST_UTME_ESUT • 2024 • ACCOUNTING • objective

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

Correct Answer A. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500, Credit Issue Expenses £ 1,500

B. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500

C. Debit Share Capital £ 5,000, Credit Issue Expenses £ 1,500

D. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500, Debit Issue Expenses £ 1,500

Correct Answer

Correct Option:

Debit Share Capital £ 5,000, Credit Share Premium £ 2,500, Credit Issue Expenses £ 1,500

This is Post Utme Esut 2024 Accounting Question 20. It is one of the objective questions from the 2024 Post Utme Esut Accounting examination.

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