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JAMB UTME - Principles of Accounts - 2014

Question 1 Report

Oil and Buns issued to the public 1,300,000 ordinary shares of 75k at a price of ₦1.50k. Application and allotment were received for 900,000 shares at 25k each.Determine the amount received on application and allotment
Answer Details
The company issued 1,300,000 ordinary shares at a price of ₦1.50k per share. This means that the total value of the shares issued is: 1,300,000 x ₦1.50k = ₦1,950,000 The company received applications and allotments for 900,000 shares at 25k each. This means that the total amount received on application and allotment is: 900,000 x 25k = ₦225,000 Therefore, the correct answer is option B: ₦225,000.
Read lesson note on Partnership Accounts (JAMB)
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