Post Utme Unilag 2021 Accounting Question 26

Practice objective / multiple choice question 26 from the 2021 Post Utme Unilag Accounting examination.

Post Utme Unilag 2021 Accounting Objective / Multiple Choice
Question 26 POST_UTME_UNILAG • 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 for the issue of shares.

Answer Options

A. Debit Share Capital £ 50,000, Credit Cash £ 50,000
Correct Answer B. Debit Share Capital £ 55,000, Credit Cash £ 50,000
C. Debit Share Capital £ 50,000, Credit Cash £ 55,000
D. Debit Share Capital £ 55,000, Credit Cash £ 55,000
Correct Answer
B
Correct Option:
Debit Share Capital £ 55,000, Credit Cash £ 50,000

About This Question

This is Post Utme Unilag 2021 Accounting Question 26. It is one of the objective questions from the 2021 Post Utme Unilag Accounting examination.

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