Question Tag: Share Premium

Search 500 + past questions and counting.

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

Find Related Questions by Tags, levels, etc.

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

Topic: Accounting Concepts
Series: MAY 2012

FA – Nov 2020 – L1 – SA – Q9 – Elements of Financial Statements

Determines the balance on the share premium account after a rights issue.

Question

What will be the balance on the share premium account after the rights issue?

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.

A. N90,000
B. N140,000
C. N150,000
D. N190,000
E. N200,000

Answer

Find Related Questions by Tags, levels, etc.

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

Topic: Elements of Financial Statements
Series: NOV 2020

FA – Nov 2012 – L1 – SB – Q3 – Accounting Concepts

Prepare journal entries, ledger accounts, and a revised statement of financial position after the redemption of preference shares.

Question

Josephine Limited has an Authorized share capital of 15,000,000 Ordinary Shares of N1 each and 2,000,000 5% Redeemable Preference Shares of N1 each. The Statement of Financial Position of the company as at 31 December 2010 is as follows:

The preference shares are redeemable at N1.10 per share, and it was decided that they should be redeemed on 2 January 2011. In order to provide the necessary funds for the redemption, the short-term investments were sold for N1,600,000.

Required:
Prepare journal entries, necessary ledger accounts, and the Statement of Financial Position after the transaction has been completed.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Statements, Preference shares, Redemption, Share Premium
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2012

FA – May 2014 – L1 – SA – Q10 – Accounting Concepts

Calculates the new share premium balance after a rights issue.

Question

What is the balance on the share premium account following the rights issue?
A. N140,000
B. N150,000
C. N160,000
D. N190,000
E. N200,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Finance, Rights Issue, Share Premium
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

Find Related Questions by Tags, levels, etc.

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 2022 – L1 – SA – Q8 – Elements of Financial Statements

Calculate the balance in the share premium account after issuing shares at a premium.

Question

Owen PLC issued 140,000 shares of ₦20 each at a price of ₦120 per share, and the issue cost was ₦2,000,000. What is the balance in the share premium account at the end of this transaction?

A. ₦12,000,000
B. ₦12,800,000
C. ₦14,000,000
D. ₦16,000,000
E. ₦16,800,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Equity, Share Premium, Shares
Level: Level 1

Topic: Elements of Financial Statements
Series: MAY 2022

FA – Mar/July 2020 – L1 – SB – Q4b -Financial Statements

Preparing share capital and related accounts based on a share issue.

Question

Bravado Limited has an authorised share capital of 10M of N0.50 per share. On November 1, 2019, the company issued the entire shares for public subscription at N0.75 per share.

As at November 10, 12M applications were received through Klassic Bank PLC, the company’s banker. The shares were allotted on a pro rata basis, and the company refunded the excess application money.

You are required to prepare:
i. Share application account
ii. Bank account
iii. Share premium account
iv. Ordinary share capital account
v. Application money refund account

Answer

Find Related Questions by Tags, levels, etc.

Tags: Journal Entries, Share Capital, Share Premium
Level: Level 1

FA – Mar/July 2020 – L1 – SB – Q4a – Financial Statements

Explaining share premium and its five uses.

Question

Explain briefly share premium and outline its FIVE uses.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Application Money, Share Capital, Share Premium
Level: Level 1

FA – Mar/July 2020 – L1 – SA – Q13 – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)

Correct journal entry for share capital and share premium

Question

P Limited made an issue of 150,000 N1 ordinary shares at a premium of 20%. The shares were fully subscribed and the proceeds were received through the bank.

What is the correct journal to record the above transaction?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Journal Entries, Share Capital, Share Premium
Level: Level 1

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

Find Related Questions by Tags, levels, etc.

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

Topic: Accounting Concepts
Series: MAY 2012

FA – Nov 2020 – L1 – SA – Q9 – Elements of Financial Statements

Determines the balance on the share premium account after a rights issue.

Question

What will be the balance on the share premium account after the rights issue?

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.

A. N90,000
B. N140,000
C. N150,000
D. N190,000
E. N200,000

Answer

Find Related Questions by Tags, levels, etc.

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

Topic: Elements of Financial Statements
Series: NOV 2020

FA – Nov 2012 – L1 – SB – Q3 – Accounting Concepts

Prepare journal entries, ledger accounts, and a revised statement of financial position after the redemption of preference shares.

Question

Required:
Prepare journal entries, necessary ledger accounts, and the Statement of Financial Position after the transaction has been completed.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Statements, Preference shares, Redemption, Share Premium
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2012

FA – May 2014 – L1 – SA – Q10 – Accounting Concepts

Calculates the new share premium balance after a rights issue.

Question

What is the balance on the share premium account following the rights issue?
A. N140,000
B. N150,000
C. N160,000
D. N190,000
E. N200,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Company Finance, Rights Issue, Share Premium
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

Find Related Questions by Tags, levels, etc.

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 2022 – L1 – SA – Q8 – Elements of Financial Statements

Calculate the balance in the share premium account after issuing shares at a premium.

Question

Owen PLC issued 140,000 shares of ₦20 each at a price of ₦120 per share, and the issue cost was ₦2,000,000. What is the balance in the share premium account at the end of this transaction?

A. ₦12,000,000
B. ₦12,800,000
C. ₦14,000,000
D. ₦16,000,000
E. ₦16,800,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Equity, Share Premium, Shares
Level: Level 1

Topic: Elements of Financial Statements
Series: MAY 2022

FA – Mar/July 2020 – L1 – SB – Q4b -Financial Statements

Preparing share capital and related accounts based on a share issue.

Question

Bravado Limited has an authorised share capital of 10M of N0.50 per share. On November 1, 2019, the company issued the entire shares for public subscription at N0.75 per share.

You are required to prepare:
i. Share application account
ii. Bank account
iii. Share premium account
iv. Ordinary share capital account
v. Application money refund account

Answer

Find Related Questions by Tags, levels, etc.

Tags: Journal Entries, Share Capital, Share Premium
Level: Level 1

FA – Mar/July 2020 – L1 – SB – Q4a – Financial Statements

Explaining share premium and its five uses.

Question

Explain briefly share premium and outline its FIVE uses.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Application Money, Share Capital, Share Premium
Level: Level 1

FA – Mar/July 2020 – L1 – SA – Q13 – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)

Correct journal entry for share capital and share premium

Question

P Limited made an issue of 150,000 N1 ordinary shares at a premium of 20%. The shares were fully subscribed and the proceeds were received through the bank.

What is the correct journal to record the above transaction?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Journal Entries, Share Capital, Share Premium
Level: Level 1

Question Tag: Share Premium

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

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"

FA – Nov 2020 – L1 – SA – Q9 – Elements of Financial Statements

Determines the balance on the share premium account after a rights issue.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q9 – Elements of Financial Statements"

FA – Nov 2012 – L1 – SB – Q3 – Accounting Concepts

Prepare journal entries, ledger accounts, and a revised statement of financial position after the redemption of preference shares.

You're reporting an error for "FA – Nov 2012 – L1 – SB – Q3 – Accounting Concepts"

FA – May 2014 – L1 – SA – Q10 – Accounting Concepts

Calculates the new share premium balance after a rights issue.

You're reporting an error for "FA – May 2014 – L1 – SA – Q10 – 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 2022 – L1 – SA – Q8 – Elements of Financial Statements

Calculate the balance in the share premium account after issuing shares at a premium.

You're reporting an error for "FA – May 2022 – L1 – SA – Q8 – Elements of Financial Statements"

FA – Mar/July 2020 – L1 – SB – Q4b -Financial Statements

Preparing share capital and related accounts based on a share issue.

You're reporting an error for "FA – Mar/July 2020 – L1 – SB – Q4b -Financial Statements"

FA – Mar/July 2020 – L1 – SB – Q4a – Financial Statements

Explaining share premium and its five uses.

You're reporting an error for "FA – Mar/July 2020 – L1 – SB – Q4a – Financial Statements"

FA – Mar/July 2020 – L1 – SA – Q13 – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)

Correct journal entry for share capital and share premium

You're reporting an error for "FA – Mar/July 2020 – L1 – SA – Q13 – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)"

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"

FA – Nov 2020 – L1 – SA – Q9 – Elements of Financial Statements

Determines the balance on the share premium account after a rights issue.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q9 – Elements of Financial Statements"

FA – Nov 2012 – L1 – SB – Q3 – Accounting Concepts

Prepare journal entries, ledger accounts, and a revised statement of financial position after the redemption of preference shares.

You're reporting an error for "FA – Nov 2012 – L1 – SB – Q3 – Accounting Concepts"

FA – May 2014 – L1 – SA – Q10 – Accounting Concepts

Calculates the new share premium balance after a rights issue.

You're reporting an error for "FA – May 2014 – L1 – SA – Q10 – 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 2022 – L1 – SA – Q8 – Elements of Financial Statements

Calculate the balance in the share premium account after issuing shares at a premium.

You're reporting an error for "FA – May 2022 – L1 – SA – Q8 – Elements of Financial Statements"

FA – Mar/July 2020 – L1 – SB – Q4b -Financial Statements

Preparing share capital and related accounts based on a share issue.

You're reporting an error for "FA – Mar/July 2020 – L1 – SB – Q4b -Financial Statements"

FA – Mar/July 2020 – L1 – SB – Q4a – Financial Statements

Explaining share premium and its five uses.

You're reporting an error for "FA – Mar/July 2020 – L1 – SB – Q4a – Financial Statements"

FA – Mar/July 2020 – L1 – SA – Q13 – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)

Correct journal entry for share capital and share premium

You're reporting an error for "FA – Mar/July 2020 – L1 – SA – Q13 – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)"

Our offerings

Contact Info

Customer

Get In Touch

NBC Institute

admin