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Accounts - Principles of Accounts Past Questions and Answers

Topic: Issue of shares and debentures

Jamb Accounts - Principles of Accounts Questions - Issue of shares and debentures

Question 11:
» Given:
Authorized Capital: N
100,000 ordinary shares of N 1 eash
Issued and fully paid:
50,000 ordinary shares of N 1 each 50,000
10, 000 8% perference shares
of N 1 each
Reserves 10,000
Creditors 25,000
Debtors 13 000
Cash in hand 5000
Calculate the shareholders fund
  • A N 60,000
  • B N75,000
  • C N85,000
  • D N185,000
View Answer & Explanation
Question 12:
The necessary accounts to be opened on the issue of ordinary share capital are?
  • A Preference share capital, cash and allotment accounts
  • B Bank and ordinary share capital accounts
  • C Cash and ordinary share capital accounts
  • D Nominal value and ordinary share capital accounts
View Answer & Explanation
Question 13:
Mamsa Nigeria Limited issued 20 000 ordinary shares of N1.50 per share on 2nd July 2002.
1500 ordinary shares were fully subscribed for and their monies received as below:
On application .........................N0.40
On allotment ...........................N0.20
First call (including premium ofN0.50)..N0.70
What is the balance of the ordinary share capital account after the first call was received?
  • A N300
  • B N1050
  • C N1200
  • D 1950
View Answer & Explanation
Question 14:
Share premium is an example of?
  • A Revenue reserve
  • B Capital reserve
  • C General reserve
  • D Loan capital
View Answer & Explanation
Question 15:
What is the value of the authorized share capital?
  • A N500,000
  • B N600,000
  • C N750,000
  • D N1, 200,000
View Answer & Explanation