Use the information below to answer questions below; A company advertised and issued N750,000, 12%
FINANCIAL
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
Correct Answer: C. credited with application and allotment N375, 000
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