Post Utme Rhema University 2025 Accounting Question 6

Practice objective / multiple choice question 6 from the 2025 Post Utme Rhema University Accounting examination.

Post Utme Rhema University 2025 Accounting Objective / Multiple Choice
Question 6 POST_UTME_RHEMA_UNIVERSITY • 2025 • ACCOUNTING • objective

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

Answer Options

A. Debit Share Capital £ 5,000, Credit Cash £ 5,000
Correct Answer B. Debit Share Capital £ 5,000, Credit Cash £ 5,000, Credit Issue Expenses £ 1,500
C. Debit Share Capital £ 5,000, Credit Cash £ 5,000, Debit Issue Expenses £ 1,500
D. Debit Share Capital £ 5,000, Credit Cash £ 5,000, Credit Bank £ 1,500
Correct Answer
B
Correct Option:
Debit Share Capital £ 5,000, Credit Cash £ 5,000, Credit Issue Expenses £ 1,500

About This Question

This is Post Utme Rhema University 2025 Accounting Question 6. It is one of the objective questions from the 2025 Post Utme Rhema University Accounting examination.

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