Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A company sold $1$ ordinary shares at $1.20$ each. The total cash received was entered in the ordinary share capital account. Which journal entry completes the records for the share issue?

  • Adebit suspense, credit ordinary share capital
  • Bdebit ordinary share capital, credit suspense
  • Cdebit ordinary share capital, credit share premium
  • Ddebit share premium, credit ordinary share capital

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