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

Question 11:

• JAMB 1999

Shares issued to a vendor in payment of business purchased would require a debit to?

A. Cash account and credit to share capital account
B. Share capital account and credit to vendor's account
C. Vendor's account and credit to share capital account
D. Share capital account and credit to cash account

Question 12:

• JAMB 2000

Didi Ltd offered 10,000 ordinary shares of N1.50 each at a discount of 2% which were fully subscribed. With regard to the offer above?

A. Shares are never offered at a discount; the offer is invalid
B. The value of shares in the capital account will be lowered by 2%
C. The company incurs a loss to the tune of 2% of the offer
D. Each of the subscribers loses 2% of investment

Question 13:

• JAMB 2000

Use the information below to answer questions Maro Merchant Bank plc is to issue N500,000 ordinary shares of 50k each at N 3.00 per share. Applications were received for N1,550,000 shares fully paid, N1,250,000 shares are to be issued on a pro rata basis and excess subscriptions were dishonored and refunds made?
What will be the number of shares to be issued to a subscriber who applied for N30,000 shares?

A. N20,000
B. N18,000
C. N15,000
D. N12,000

Question 14:

• JAMB 2000

Use the information below to answer question
Maimalari Ltd had (i) Earning per share 47k
(ii) Dividend per share 30k
(iii) Par value of each share N1.20
(iv) Market price per share N1.50
The company's earning yield is?

A. 20.00%
B. 25.00%
C. 31.33%
D. 39.17%

Question 15:

• JAMB 2001

Where a company acquires controlling shares of another and the consideration is paid in cash, the entries in the books of the purchases are debit?`

A. Investment and credit cash
B. Investment and credit shares
C. Purchases and credit cash
D. Purchases and credit shares