Post Utme Skyline University 2023 Accounting Question 21

Practice objective / multiple choice question 21 from the 2023 Post Utme Skyline University Accounting examination.

Post Utme Skyline University 2023 Accounting Objective / Multiple Choice
Question 21 POST_UTME_SKYLINE_UNIVERSITY • 2023 • ACCOUNTING • objective

A company issued 5,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 2,000. Prepare the journal entry to record the issue of shares.

Answer Options

Correct Answer A. Debit Share Capital £ 5,500, Credit Cash £ 5,000, Credit Share Premium £ 2,500, Debit Issue Expenses £ 2,000
B. Debit Share Capital £ 5,000, Credit Cash £ 5,000, Credit Share Premium £ 2,500, Debit Issue Expenses £ 2,000
C. Debit Share Capital £ 5,500, Credit Cash £ 5,000, Debit Share Premium £ 2,500, Credit Issue Expenses £ 2,000
D. Debit Share Capital £ 5,000, Credit Cash £ 5,000, Debit Share Premium £ 2,000, Credit Issue Expenses £ 2,000
Correct Answer
A
Correct Option:
Debit Share Capital £ 5,500, Credit Cash £ 5,000, Credit Share Premium £ 2,500, Debit Issue Expenses £ 2,000

About This Question

This is Post Utme Skyline University 2023 Accounting Question 21. It is one of the objective questions from the 2023 Post Utme Skyline University Accounting examination.

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