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

Question 26:

• JAMB 2008

Cash received from the subscribed shares is recorded by debting?

A. Application, allotment and crediting cash
B. Allotment and crediting cash
C. Cash and crediting subscribed shares
D. Cash, crediting application and allotment account

Question 27:

• JAMB 2008

Ordinary shareholders received dividend before?

A. Creditors
B. Debtors
C. Preference shareholders
D. Deferred shareholders

Question 28:

• JAMB 2009

Use the information below to answer questions below;
A company advertised and issued N750,000, 12% preference shares of N1 each to be issued at N1.50 per share. Applications for N1,370,000 were received at 30k per share. 70k per share (including premium) was due om allotment while 25k per share was due on each of the remaining two calls. All amounts due were received . Application money for 120,000 shares was refunded to unsuccessful applicants were allotment shares on pro-rata basis.
The share premium account would be?

A. Credited with application and allotment N187, 500
B. Debited with appllication and allotment N375,000
C. Credited with application and allotment N375, 000
D. Debited with application and allotment N187, 500

Question 29:

• JAMB 2009

Use the information below to answer questions below;
A company advertised and issued N750,000, 12% preference shares of N1 each to be issued at N1.50 per share. Applications for N1,370,000 were received at 30k per share. 70k per share (including premium) was due on allotment while 25k per share was due on each of the remaining two calls. All amounts due were received . Application money for 120,000 shares was refunded to unsuccessful applicants were allotment shares on pro-rata basis.
The second and final call account was debited with?

A. Ordinary share capital account N187,500
B. 12% preference share capital N375,000
C. Bank account N187,500
D. 12% preference share capital account N187,500

Question 30:

• JAMB 2010

Given:
N6 000 10% preference shares of N0.50 each
N6 000 ordinary shares of N1 each
Capital reserves N2 700 000
Long-term liabilities N4 000 000
Find the value of authorized share capital?



A. 13 000 000
B. 12 000 000
C. 9 000 000
D. 15 700 000