Post Utme Unn 2018 Accounting Question 14

Practice objective / multiple choice question 14 from the 2018 Post Utme Unn Accounting examination.

Post Utme Unn 2018 Accounting Objective / Multiple Choice
Question 14 POST_UTME_UNN • 2018 • ACCOUNTING • objective

A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 10,000. Prepare the journal entry for the issue of shares.

Answer Options

Correct Answer A. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Issue Expenses £ 10,000
B. Debit Share Capital £ 10,000, Credit Share Premium £ 10,000, Credit Issue Expenses £ 10,000
C. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Cash £ 10,000
D. Debit Share Capital £ 10,000, Credit Share Premium £ 10,000, Credit Cash £ 5,000
Correct Answer
A
Correct Option:
Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Issue Expenses £ 10,000

About This Question

This is Post Utme Unn 2018 Accounting Question 14. It is one of the objective questions from the 2018 Post Utme Unn Accounting examination.

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