Accounting Multiple Choice Question – 13 November 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

apple devices books business coffee
Photo by Serpstat on Pexels.com

At the beginning of the year a company has authorised share capital of 400,000 £1 ordinary shares and issued share capital of 200,000 £1 ordinary shares.

During the year the company makes a further issue of 100,000 £1 ordinary shares at a price of £2.40 each.

What is the balance on the Share Capital account at the end of the year?

Select ONE answer:

  1. £300,000
  2. £440,000
  3. £500,000
  4. £640,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – 200k * £1 + 100k * £1 (the difference is share premium)
  2. Not correct
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.