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WAEC Financial Accounting 2000 Question 41

Question 41

Company Accounts

Which of the following accounts has a debit balance?

  1. A.Capital reserve
  2. B.Revenue reserve
  3. C.Share premium
  4. D.Share discount.
Show the answer and explanation

Answer: D (Share discount.)

Explanation

Share discount is a loss on issue, shown as a debit balance; the reserves and premium are credits.