Accounting Multiple Choice Question – 4 December 2023

At the beginning of the year Alex Trading plc has authorised share capital of 800,000 ordinary shares of £0.25 each and an issued share capital of 400,000 ordinary shares of £0.25.

During the year, Alex Trading plc makes a further issue of 200,000 ordinary shares at a price of £0.60.

What is the balance on the share capital account at the end of the year?

Select ONE answer:

1. £150,000
2. £22,0000
3. £250,000
4. £350,000

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 – (400,000 * £0.25) + (200,000 * £0.25)
2. Not correct
3. Not correct
4. Not correct

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