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

Question 16:

• JAMB 2001

The main difference between the ordinary and preference shareholders is that?

A. The former receive dividends while the latter do not
B. The latter are not members of the company while the former are
C. In the case of winding up, the former are paid first before the latter
D. The former have voting rights while the latter do not

Question 17:

• JAMB 2003

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

Question 18:

• JAMB 2003

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

Question 19:

• JAMB 2004

Debentures can be redeemed out of?

A. Existing share capital reserve
B. Existing general reserve
C. Proceeds from new issue of shares
D. Withholding tax

Question 20:

• JAMB 2004

The expenses incurred in promoting a company are?

A. Promoters' expenses
B. Floating expenses
C. Preliminary expenses
D. The borad's expenses