WAEC Accounting 2014 Objective — Question 30
Question 30 of 50 from the West African Examinations Council (WAEC) Accounting 2014 Objective paper, with the correct answer and a full explanation.
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When shares are issued above their nominal value, the excess above the nominal value is
- A. credited to Profit and Loss Account
- B. debited to Share Premium Account
- C. credited to Share Capital Account
- D. credited to Share Premium AccountCorrect
Explanation
The amount above the par value of a share is share premium; the accounting entry is Dr Cash account, Cr Share Premium account.
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