Accounting Multiple Choice Question – 13 May 2022

A company issues 500 000 £1 ordinary shares for £3 each and £250 000 debentures of 6%.

By which amount will the net assets of the company increase?

Select ONE answer:

1. £750,000
2. £1,250,000
3. £1,500,000
4. £1,750,000

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 3

1. Not correct
2. Not correct
3. Correct – Dr Cash £1,750k Cr Share Capital £1,500 Cr LT Liability £250k
4. Not correct

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