Introduction to Company Accounts - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 11:

• JAMB 1995

If a 10% dividend is approved, what is the dividend payable to ordinary shareholders?

A. N 13 000
B. N 11 300
C. N 10 000
D. N 8 000

Question 12:

• JAMB 1997

Share premium can be used to?
i. write off discount on shares
ii. give loans to directors
iii.pay dividends
iv. pay company's formation expenses.

A. I and iv only
B. I and iii only
C. Ii and iii only
D. Iii and iv only

Question 13:

• JAMB 1997

Alabede (NIG) limited issued 50 000 ordinary shares of N1 each at a market value of N2.50 each. the share premium is?

A. N125 000
B. N500 000
C. N50 000
D. N25 000

Question 14:

• JAMB 1997

A company has 5% debentures worth N500 000 ordinary share capital N 2 000 000, and preference shares N1500 000. if the company made a profit of N 1 000 000, the debenture interest would amount to

A. N 1 000 000
B. N 500 000
C. N 50 000
D. N 25 000

Question 15:

• JAMB 1997

A dividend of 10% in a company on 500 000 ordinary shares of N 1 nominal value has been declared, How much will a shareholder receive if he has 200 shares?

A. N 500 000
B. N 50 000
C. N200
D. N 20