Item No. 3 is based on the following information:Howing ledLeon Corporation sold 500 shares of its P 40 par value preference sharesfor cash at P 50 per share.3. In recording this transaction, there would be a:23510HD 3a.Credit to Preference Share Capital for P 20,000.b. Credit to Preference Share Capital for P 25,000.open no bsand 21 I.oM mattCredit to Preference Share Capital in Excess of Stated Value for P 5,000.C.d. Credit to Subscribed Preference Share Capital for P 20,000.

Preference share capital includes such capital which is given preference in respect of receipt of…

Leon Corporation sold 500 shares of its P 40 par value preference shares for cash at P 50 per share. 3. In recording this transaction, there would be a: a. Credit to Preference Share Capital for P 20,000. b. Credit to Preference Share Capital for P 25,000. fors Credit to Preference Share Capital in Excess of Stated Value for P 5,000. al to matt C. d. Credit to Subscribed Preference Share Capital for P 20,000.

Leon Corporation sold 500 shares of its P 40 par value preference shares for cash at P 50 per share. 3. In recording this transaction, there would be a: a. Credit to Preference Share Capital for P 20,000. b. Credit to Preference Share Capital for P 25,000. fors Credit to Preference Share Capital in Excess of Stated Value for P 5,000. al to matt C. d. Credit to Subscribed Preference Share Capital for P 20,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sanders plc issued 50, 000 equity shares of 25p each at a premium of 50p per share. The cash received was correctly recorded but the full amount was also recorded in the equity share capital account. Which of the followings corrects this error? O A. Decrease share capital £25, 000, Increase share premium £25,000 O B. Increase share premium £25,000, Increase cash £25,000 O C. Increase share capital £25,000, Increase cash £25,000 O D. Decrease share premium £25, 000, Increase share capital £25,000 O E. Decrease share capital £37, 500, Increase share premium £37,500 OF. Decrease share capital E25, 000, Increase cash £25,000
am.112.
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