A company issued 50000 ordinary shares of $0.50 each at a price of $0.60 each. What were the accounting entries for the issue? debit $ credit $ bank 30000 share capital 25000 share premium 5000 bank 25000 share capital 30000 share premium 5000 share capital 30000 bank 30000 share capital 25000 bank 30000 share premium 5000
✓ Correct Answer
The correct answer is A: debit bank $30000, credit share capital $25000, share premium $5000
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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