Day: August 27, 2023

Accounting Multiple Choice Question – 27 August 2023

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

Photo by Nataliya Vaitkevich on Pexels.com

Alex plc redeems 1,000 preference shares of £1.00 each at a premium of 10 %.

The shares were originally issued at par and there is no share premium account.

How much will be charged to the profit and loss account?

Select ONE answer:

  1. £100
  2. £900
  3. £1,000
  4. £1,100

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – £1 * 1.1 * 1,000

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