What will be the number of shares to be issued to a subscriber who applied for 50,000 units.

Assessment: JAMB UTME - Principles of Accounts - 2015 Subject: Financial Accounting

Question 1 Report

What will be the number of shares to be issued to a subscriber who applied for 50,000 units.
Answer Details
Allotment = 500,000 = 0.4 or 40%

∴ Each subscriber would get 40% shares of what they applied for.

∴ 50,000 x 0.4 = 20,000 units

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