Post Utme Redeemers University 2021 Accounting Question 21

Practice objective / multiple choice question 21 from the 2021 Post Utme Redeemers University Accounting examination.

Post Utme Redeemers University 2021 Accounting Objective / Multiple Choice
Question 21 POST_UTME_REDEEMERS_UNIVERSITY • 2021 • 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 Share Premium £ 5,000, Credit Issue Expenses £ 5,000
B. Debit Share Capital £ 10,000, Credit Share Premium £ 10,000
Correct Answer C. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Debit Issue Expenses £ 5,000
D. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000
Correct Answer
C
Correct Option:
Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Debit Issue Expenses £ 5,000

About This Question

This is Post Utme Redeemers University 2021 Accounting Question 21. It is one of the objective questions from the 2021 Post Utme Redeemers University Accounting examination.

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