Post Utme Unilag 2022 Accounting Question 6

Practice objective / multiple choice question 6 from the 2022 Post Utme Unilag Accounting examination.

Post Utme Unilag 2022 Accounting Objective / Multiple Choice
Question 6 POST_UTME_UNILAG • 2022 • 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 £ 5,000, Credit Share Premium £ 2,500, Credit Issue Expenses £ 2,000
B. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500
C. Debit Share Capital £ 5,000, Credit Issue Expenses £ 2,000
D. Debit Share Premium £ 2,500, Credit Issue Expenses £ 2,000
Correct Answer
A
Correct Option:
Debit Share Capital £ 5,000, Credit Share Premium £ 2,500, Credit Issue Expenses £ 2,000

About This Question

This is Post Utme Unilag 2022 Accounting Question 6. It is one of the objective questions from the 2022 Post Utme Unilag Accounting examination.

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