Post Utme Skyline University 2017 Accounting Question 36

Practice objective / multiple choice question 36 from the 2017 Post Utme Skyline University Accounting examination.

Post Utme Skyline University 2017 Accounting Objective / Multiple Choice
Question 36 POST_UTME_SKYLINE_UNIVERSITY • 2017 • 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

Correct Answer A. Debit Share Capital £ 50,000, Credit Share Premium £ 50,000, Credit Issue Expenses £ 5,000
B. Debit Share Capital £ 50,000, Credit Share Premium £ 45,000, Credit Issue Expenses £ 5,000
C. Debit Share Capital £ 55,000, Credit Share Premium £ 50,000, Credit Issue Expenses £ 5,000
D. Debit Share Capital £ 55,000, Credit Share Premium £ 45,000, Credit Issue Expenses £ 5,000
Correct Answer
A
Correct Option:
Debit Share Capital £ 50,000, Credit Share Premium £ 50,000, Credit Issue Expenses £ 5,000

About This Question

This is Post Utme Skyline University 2017 Accounting Question 36. It is one of the objective questions from the 2017 Post Utme Skyline University Accounting examination.

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