JAMB Accounting Past Questions & Answers - Page 42

206.

Use the following to answer this question. 

Industry ltd, issued 100,000 shares at ₦1 each out of its Authorized share capital of ₦200,000 at ₦1 each. At the of the first call, all shareholders paid in full, except for two shareholder who owes ₦20,000.

The Unissued capital of the company is

A.

₦310,000

B.

₦200,000

C.

₦210,000

D.

₦100,000

Correct answer is D

Unissuer capital is the total amount which has not been issued out on the authorized, nominal or registered capital.
Therefore, unissued capital = Authorized
capital - issued capital which is :
200,000 - 100,000 = ₦100,000

 

207.

Use the following to answer this question. 

Industry ltd, issued 100,000 shares at ₦1 each out of its Authorized share capital of ₦200,000 at ₦1 each. At the of the first call, all shareholders paid in full, except for two shareholder who owes ₦20,000.

The company's paid-up capital is

A.

₦70,000

B.

₦80,000

C.

₦220,000

D.

₦120,000

Correct answer is B

Paid up capital is the total amount paid up or credited as paid up, on the issued share capital.
From the question above, the issued share capital is ₦100,000 and two of the shareholder owes ₦20,000. Therefore, the paid up is 100,000 - 20,000 = ₦80,000.

 

210.

If only wages is shown on the trial balance, it should be charged to the

A.

Profit and loss account

B.

Trading account

C.

Balance sheet

D.

Wages account

Correct answer is A

Wages should be charged in the trading account only if shown separately on the trial balance from salaries. In such circumstances, the assumption, unless you are otherwise told, is that the wage is a direct trading expense to be included in the trading account while salary is an Indirect (i.e overhead) expense to be included in the P & L account.