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

Question 36:

• JAMB 2013

The issued share capital is the number of shares that are

A. Authorized by share holders
B. Shared among the directors
C. Fully subscribed
D. In the share certificate

Question 37:

• JAMB 2013

The distributable profit available to shareholders at the end of each year is the

A. Total profit and debtors balance
B. General reserve and retained profit
C. Retained profit and fictitious assets
D. Total profit less creditors balance

Question 38:

• JAMB 2013

The debenture issued at par above the nominal value is said to be issued at a

A. Cost price
B. Mark-up
C. Premium
D. Margin

Question 39:

• JAMB 2014

Payment for shares in excess of amount offered gives rise to

A. Subscription in advance
B. Revenue reserves
C. Capital reserves
D. Calls-in-advance

Question 40:

• JAMB 2014

#800,000 worth of ordinary shares of 50k were issued at #1 each, payable in full on application. The entry in the cash book would be to

A. Credit #1,600,000
B. Debit #1,600,000
C. Credit #1,600,000
D. Debit #800,000