ABC Company re-acquired 25000 shares of its outstanding common stock for OMR 1 each on 10^th January 2019. The stockholders equity of the company was a combination of retained earnings and common stock only. On 10^th March 2019, the company re-issued 10,000 shares of OMR 1.300 per share. On 10^th May 2019, an additional 5000 shares at 0.800 baisa per share were re-issued by the company.

1)

Which of the following journal entry is True on 10 March 2019 in respect of Reissue of shares?

a.

Dr. Treasury stock OMR 25,000 Cr. Bank OMR 25,000

b.

Dr. Bank OMR 4000 Dr. Share premium OMR 1000 Cr. Treasury stock OMR 5000

c.

Dr. Bank OMR 13,000 Cr. Treasury stock OMR 10,000 Cr. Share premium OMR 3,000

d.

Dr. Bank OMR 25,000 Cr.Treasury Stock OMR 25,000

2)

Which of the following journal entry is Correct on 10 January 2019 in respect of Repurchase of shares?

a.

Dr. Bank OMR 4000 Dr. Share premium OMR 1000 Cr. Treasury stock OMR 5000

b.

Dr. Treasury stock OMR 25,000 Cr. Bank OMR 25,000

c.

Dr. Bank OMR 13000 Cr. Treasury stock OMR 10000 Cr. Share premium OMR 3000

d.

Dr. Bank OMR 25,000 Cr.Treasury Stock OMR 25,000

3)

Which of the following journal entry is True on 10 May 2019 in respect of Re-issue of shares?

a.

Dr. Treasury stock OMR 25,000 Cr. Bank OMR 25,000

b.

Dr. Bank OMR 13000 Cr. Treasury stock OMR 10000 Cr. Share premium OMR 3000

c.

Dr. Bank OMR 4000 Dr. Share premium OMR 1000 Cr. Treasury stock OMR 5000

d.

Dr. Bank OMR 25,000 Cr.Treasury Stock OMR 25,000