Accounting Multiple Choice Question – 27 August 2023

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

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