Question Tag: Share Capital

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FA – May 2012 – L1 – SA – Q12 – Accounting Concepts

Determining the correct presentation of share capital and share premium after a fresh issue of shares.

Question

At 1 January 2011, the capital structure of Jumbo Plc was as follows:

Issued share capital, 10,000,000 ordinary shares of N1.00 each: N10,000,000
Share premium account: N500,000

On 1 September 2011, the company made a fresh issue of 500,000 shares at N1.30 each. Which of the following correctly presents the company’s share capital and share premium accounts as at 31 December 2011?

A. Share capital N10,000,000, Share premium N650,000
B. Share capital N10,500,000, Share premium N650,000
C. Share capital N10,650,000, Share premium N500,000
D. Share capital N10,150,000, Share premium N1,000,000
E. Share capital N10,000,000, Share premium N500,000

Answer

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Tags: Financial Position, Share Capital, Share Premium
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2012

BL – Nov 2012 – L1 – SA – Q14 – Company Law

Identify the minimum authorized share capital for a private limited company.

Question

What is the minimum authorized Share Capital of a Private Limited Liability Company as prescribed by Companies and Allied Matters Act LFN 2004?

Answer

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Tags: Company Law, Share Capital
Level: Level 1

Topic: Company Law
Series: NOV 2012

FA – Nov 2020 – L1 – SA – Q8 – Elements of Financial Statements

Determines the amount credited to share capital from a rights issue.

Question

The capital structure of Baba Oba Limited is shown below:

Item	N’000
Ordinary share capital: 200,000 shares of 50k each	100
Premium account	150

The company made a rights issue of 1 for 5 at N1.50, and the rights issue was fully subscribed.

What is the amount of the rights issue credited to share capital?
A. N20,000
B. N40,000
C. N50,000
D. N70,000
E. N100,000

Answer

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Tags: Capital structure, Rights Issue, Share Capital
Level: Level 1

Topic: Elements of Financial Statements
Series: NOV 2020

FA – Nov 2012 – L1 – SA – Q13 – Financial Statements Preparation

Determining the correct statement about limited liability company accounts.

Question

Which of the following statements is correct about the accounts of limited liability companies?

A. Revaluation surplus on a non-current asset arising from disposal of the asset at a profit
B. Events after the reporting period require that non-adjusting events should be disclosed in the notes to the financial statements
C. The authorised share capital consists of a company’s nominal capital value of shares and loan notes raised by the company
D. Revaluation surplus on investment properties is debited to Income Statement
E. Income is not an element of financial statements

Answer

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Tags: Accounts, Company, Revaluation, Share Capital
Level: Level 1

Topic: Financial Statements Preparation
Series: NOV 2012

BL – May 2013 – L1 – SB – Q4A – Company Law

List and explain five incorporation documents required for registering a company.

Question

Hassan, a young businessman engaged in the manufacturing of “Healthy Energy Drink”, has recently contacted you for the incorporation of a company to be known as Healthy Energy Limited.

You are required to:

State FIVE incorporation documents required to be submitted by the company, indicating the purpose of each document.

Answer

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Tags: Articles of Association, Incorporation, Memorandum of Association, Share Capital
Level: Level 1

Topic: Company Law
Series: MAY 2013

BMF – MAY 2015 – L1 – SA – Q10 – Business and Organizational Structures and Choices

Requirements for incorporating a limited liability company, excluding non-essential documents.

Question

The following are required to incorporate a limited liability company EXCEPT:

A. Memorandum of Association
B. Articles of Association
C. Statement of authorised share capital
D. Location of the registered office
E. Source of finance

Answer

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Tags: Articles of Association, Company Formation, Incorporation, Memorandum of Association, Share Capital
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: MAY 2015

BL – May 2014 – L1 – SA – Q10 – Agency Law

Identifying the minimum share capital requirement for life insurance business.

Question

An insurer cannot carry on life insurance business if its share capital is less than ____________.

Answer

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Tags: Insurance, Life Insurance, Share Capital
Level: Level 1

Topic: Agency Law
Series: MAY 2014

FR – Dec 2022 – L2 – Q5c – Calculation of EPS for the Year Ended December 31, 2021

This question requires the calculation of EPS for the year 2021, and restating the EPS for the year 2020 using a rights issue adjustment.

Question

On January 1, 2021, Bayor Ltd had 10 million ordinary shares in issue. On 31 March 2021, the company issued at full market price, 2 million ordinary shares. On 31 August 2021, the company made a rights issue of 1 for 5 at GH¢3. The fair value of the shares on the last day before the rights issue was GH¢3.80. Profit for the current period is GH¢3.5 million. The reported Earnings Per Share (EPS) for the year ended December 31, 2020 was 0.33p.

Required: Calculate the EPS for the year ended December 31, 2021, and the restated EPS for the year ended December 31, 2020.

Answer

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Tags: Earnings Per Share, Financial Reporting, IFRS 33, Share Capital
Level: Level 2

Topic: Financial Reporting Standards and Their Applications
Series: DEC 2022

FA – May 2014 – L1 – SA – Q9 – Accounting Concepts

Determines the value of a rights issue for Opa Limited.

Question

Opa Limited has the following capital structure:
Ordinary share capital – 200,000 shares of 50k each – N100,000
Share Premium Account – N150,000

The company made a rights issue of 1 for 5 at N1.50, which was fully subscribed.

Determine the value of the rights issue.
A. N40,000
B. N50,000
C. N60,000
D. N70,000
E. N75,000

Answer

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Tags: Company Finance, Rights Issue, Share Capital
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2014

FA – Nov 2013 – L1 – SB – Q5 – Partnership Accounts

Preparation of journal entries for share issue, forfeiture, and reissue transactions.

Question

Mosafejo Plc issued 200,000 Ordinary Shares of N1.00 each at N1.40 per share, payable as follows:

(i) 35 kobo on application
(ii) 65 kobo on allotment (including premium)
(iii) 40 kobo on first and final call

All the monies were received on due dates except for 20,000 shares not paid on first call. The holders of these shares failed to pay up, and after some reminders, the shares were forfeited. The shares were re-issued at 75 kobo per share, and all the monies received.

You are required to:
(a) Draw up journal entries to record the above transactions.
(11 Marks)

(b) The Share Premium Account may be used in certain circumstances. List any TWO circumstances in which the Share Premium Account may be used.
(4 Marks)

Answer

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Tags: Forfeiture of Shares, Journal Entries, Reissue of Shares, Share Capital, Share Premium
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: NOV 2013

FA – May 2012 – L1 – SA – Q12 – Accounting Concepts

Determining the correct presentation of share capital and share premium after a fresh issue of shares.

Question

At 1 January 2011, the capital structure of Jumbo Plc was as follows:

Issued share capital, 10,000,000 ordinary shares of N1.00 each: N10,000,000
Share premium account: N500,000

Answer

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Tags: Financial Position, Share Capital, Share Premium
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2012

BL – Nov 2012 – L1 – SA – Q14 – Company Law

Identify the minimum authorized share capital for a private limited company.

Question

What is the minimum authorized Share Capital of a Private Limited Liability Company as prescribed by Companies and Allied Matters Act LFN 2004?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Law, Share Capital
Level: Level 1

Topic: Company Law
Series: NOV 2012

FA – Nov 2020 – L1 – SA – Q8 – Elements of Financial Statements

Determines the amount credited to share capital from a rights issue.

Question

The capital structure of Baba Oba Limited is shown below:

Item	N’000
Ordinary share capital: 200,000 shares of 50k each	100
Premium account	150

The company made a rights issue of 1 for 5 at N1.50, and the rights issue was fully subscribed.

What is the amount of the rights issue credited to share capital?
A. N20,000
B. N40,000
C. N50,000
D. N70,000
E. N100,000

Answer

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Tags: Capital structure, Rights Issue, Share Capital
Level: Level 1

Topic: Elements of Financial Statements
Series: NOV 2020

FA – Nov 2012 – L1 – SA – Q13 – Financial Statements Preparation

Determining the correct statement about limited liability company accounts.

Question

Which of the following statements is correct about the accounts of limited liability companies?

Answer

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Tags: Accounts, Company, Revaluation, Share Capital
Level: Level 1

Topic: Financial Statements Preparation
Series: NOV 2012

BL – May 2013 – L1 – SB – Q4A – Company Law

List and explain five incorporation documents required for registering a company.

Question

Hassan, a young businessman engaged in the manufacturing of “Healthy Energy Drink”, has recently contacted you for the incorporation of a company to be known as Healthy Energy Limited.

You are required to:

State FIVE incorporation documents required to be submitted by the company, indicating the purpose of each document.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Articles of Association, Incorporation, Memorandum of Association, Share Capital
Level: Level 1

Topic: Company Law
Series: MAY 2013

BMF – MAY 2015 – L1 – SA – Q10 – Business and Organizational Structures and Choices

Requirements for incorporating a limited liability company, excluding non-essential documents.

Question

The following are required to incorporate a limited liability company EXCEPT:

A. Memorandum of Association
B. Articles of Association
C. Statement of authorised share capital
D. Location of the registered office
E. Source of finance

Answer

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Tags: Articles of Association, Company Formation, Incorporation, Memorandum of Association, Share Capital
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: MAY 2015

BL – May 2014 – L1 – SA – Q10 – Agency Law

Identifying the minimum share capital requirement for life insurance business.

Question

An insurer cannot carry on life insurance business if its share capital is less than ____________.

Answer

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Tags: Insurance, Life Insurance, Share Capital
Level: Level 1

Topic: Agency Law
Series: MAY 2014

FR – Dec 2022 – L2 – Q5c – Calculation of EPS for the Year Ended December 31, 2021

This question requires the calculation of EPS for the year 2021, and restating the EPS for the year 2020 using a rights issue adjustment.

Question

Required: Calculate the EPS for the year ended December 31, 2021, and the restated EPS for the year ended December 31, 2020.

Answer

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Tags: Earnings Per Share, Financial Reporting, IFRS 33, Share Capital
Level: Level 2

Topic: Financial Reporting Standards and Their Applications
Series: DEC 2022

FA – May 2014 – L1 – SA – Q9 – Accounting Concepts

Determines the value of a rights issue for Opa Limited.

Question

Opa Limited has the following capital structure:
Ordinary share capital – 200,000 shares of 50k each – N100,000
Share Premium Account – N150,000

The company made a rights issue of 1 for 5 at N1.50, which was fully subscribed.

Determine the value of the rights issue.
A. N40,000
B. N50,000
C. N60,000
D. N70,000
E. N75,000

Answer

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Tags: Company Finance, Rights Issue, Share Capital
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2014

FA – Nov 2013 – L1 – SB – Q5 – Partnership Accounts

Preparation of journal entries for share issue, forfeiture, and reissue transactions.

Question

Mosafejo Plc issued 200,000 Ordinary Shares of N1.00 each at N1.40 per share, payable as follows:

(i) 35 kobo on application
(ii) 65 kobo on allotment (including premium)
(iii) 40 kobo on first and final call

You are required to:
(a) Draw up journal entries to record the above transactions.
(11 Marks)

(b) The Share Premium Account may be used in certain circumstances. List any TWO circumstances in which the Share Premium Account may be used.
(4 Marks)

Answer

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Tags: Forfeiture of Shares, Journal Entries, Reissue of Shares, Share Capital, Share Premium
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: NOV 2013

Question Tag: Share Capital

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FA – May 2012 – L1 – SA – Q12 – Accounting Concepts

Determining the correct presentation of share capital and share premium after a fresh issue of shares.

You're reporting an error for "FA – May 2012 – L1 – SA – Q12 – Accounting Concepts"

BL – Nov 2012 – L1 – SA – Q14 – Company Law

Identify the minimum authorized share capital for a private limited company.

You're reporting an error for "BL – Nov 2012 – L1 – SA – Q14 – Company Law"

FA – Nov 2020 – L1 – SA – Q8 – Elements of Financial Statements

Determines the amount credited to share capital from a rights issue.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q8 – Elements of Financial Statements"

FA – Nov 2012 – L1 – SA – Q13 – Financial Statements Preparation

Determining the correct statement about limited liability company accounts.

You're reporting an error for "FA – Nov 2012 – L1 – SA – Q13 – Financial Statements Preparation"

BL – May 2013 – L1 – SB – Q4A – Company Law

List and explain five incorporation documents required for registering a company.

You're reporting an error for "BL – May 2013 – L1 – SB – Q4A – Company Law"

BMF – MAY 2015 – L1 – SA – Q10 – Business and Organizational Structures and Choices

Requirements for incorporating a limited liability company, excluding non-essential documents.

You're reporting an error for "BMF – MAY 2015 – L1 – SA – Q10 – Business and Organizational Structures and Choices"

BL – May 2014 – L1 – SA – Q10 – Agency Law

Identifying the minimum share capital requirement for life insurance business.

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FR – Dec 2022 – L2 – Q5c – Calculation of EPS for the Year Ended December 31, 2021

This question requires the calculation of EPS for the year 2021, and restating the EPS for the year 2020 using a rights issue adjustment.

You're reporting an error for "FR – Dec 2022 – L2 – Q5c – Calculation of EPS for the Year Ended December 31, 2021"

FA – May 2014 – L1 – SA – Q9 – Accounting Concepts

Determines the value of a rights issue for Opa Limited.

You're reporting an error for "FA – May 2014 – L1 – SA – Q9 – Accounting Concepts"

FA – Nov 2013 – L1 – SB – Q5 – Partnership Accounts

Preparation of journal entries for share issue, forfeiture, and reissue transactions.

You're reporting an error for "FA – Nov 2013 – L1 – SB – Q5 – Partnership Accounts"

FA – May 2012 – L1 – SA – Q12 – Accounting Concepts

Determining the correct presentation of share capital and share premium after a fresh issue of shares.

You're reporting an error for "FA – May 2012 – L1 – SA – Q12 – Accounting Concepts"

BL – Nov 2012 – L1 – SA – Q14 – Company Law

Identify the minimum authorized share capital for a private limited company.

You're reporting an error for "BL – Nov 2012 – L1 – SA – Q14 – Company Law"

FA – Nov 2020 – L1 – SA – Q8 – Elements of Financial Statements

Determines the amount credited to share capital from a rights issue.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q8 – Elements of Financial Statements"

FA – Nov 2012 – L1 – SA – Q13 – Financial Statements Preparation

Determining the correct statement about limited liability company accounts.

You're reporting an error for "FA – Nov 2012 – L1 – SA – Q13 – Financial Statements Preparation"

BL – May 2013 – L1 – SB – Q4A – Company Law

List and explain five incorporation documents required for registering a company.

You're reporting an error for "BL – May 2013 – L1 – SB – Q4A – Company Law"

BMF – MAY 2015 – L1 – SA – Q10 – Business and Organizational Structures and Choices

Requirements for incorporating a limited liability company, excluding non-essential documents.

You're reporting an error for "BMF – MAY 2015 – L1 – SA – Q10 – Business and Organizational Structures and Choices"

BL – May 2014 – L1 – SA – Q10 – Agency Law

Identifying the minimum share capital requirement for life insurance business.

You're reporting an error for "BL – May 2014 – L1 – SA – Q10 – Agency Law"

FR – Dec 2022 – L2 – Q5c – Calculation of EPS for the Year Ended December 31, 2021

This question requires the calculation of EPS for the year 2021, and restating the EPS for the year 2020 using a rights issue adjustment.

You're reporting an error for "FR – Dec 2022 – L2 – Q5c – Calculation of EPS for the Year Ended December 31, 2021"

FA – May 2014 – L1 – SA – Q9 – Accounting Concepts

Determines the value of a rights issue for Opa Limited.

You're reporting an error for "FA – May 2014 – L1 – SA – Q9 – Accounting Concepts"

FA – Nov 2013 – L1 – SB – Q5 – Partnership Accounts

Preparation of journal entries for share issue, forfeiture, and reissue transactions.

You're reporting an error for "FA – Nov 2013 – L1 – SB – Q5 – Partnership Accounts"

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