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

Question 21:

• JAMB 2004

Share premium is an example of?

A. Revenue reserve
B. Capital reserve
C. General reserve
D. Loan capital

Question 22:

• JAMB 2004

What is the value of the authorized share capital?

A. N500,000
B. N600,000
C. N750,000
D. N1, 200,000

Question 23:

• JAMB 2005

A company paid cash in redemption of N10,000 debenture.
The accounting entry to record this will be to debit?

A. Cash and credit debenture
B. Debenture and credit cash
C. Cash and credit capital
D. Capital and debit cash

Question 24:

• JAMB 2007

Use the information below to answer question .
A company's authorized share capital was one million ordinary shares at N1 each. Issued 80% of its shares at N1.10 per share. 70k was payable on application, 25k on allotment, 10k due on first call and the balance on second call.
What would be the total amount received on second call?

A. N240 000
B. N280 000
C. N40 000
D. N56 000

Question 25:

• JAMB 2007

Use the information below to answer question
A company's authorized share capital was one million ordinary shares at N1 each. Issued 80% of its shares at N1.10 per share. 70k was payable on application, 25k on allotment, 10k due on first call and the balance on second call.
The total amount of money received on application was?

A. N560 000
B. N220 000
C. N800 000
D. N1000 000