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

Question 31:

• JAMB 2010

An ordinary share of N80 was issued at N96. The share was issued at?

A. Premium
B. Par
C. Discount
D. Loss

Question 32:

• JAMB 2011

If Aboki Holdings Limited issued 120, 000 ordinary share of N2.00 each at market value of 5.50k each, the share premium would?

A. N500 000
B. N450 000
C. N550 000
D. N420 000

Question 33:

• JAMB 2013

When a share valued at 50k is issued at #1.59, it is said to be issued at

A. Par
B. Premium
C. Discount
D. Interest

Question 34:

• JAMB 2013

The purchase consideration that is lower than the net asset implies that, the buyer has gained the advantage of

A. Net income
B. Revenue reserve
C. Capital reserve
D. Net loss

Question 35:

• JAMB 2013

When shares are issued at a discount, entries are to debit

A. Application allotment account and credit discount accoun
B. Discount account and credit
C. Cash account and credit discount account
D. Discount account and credit bank account