JAMB Accounting 2009 Objective — Question 43

43. A company advertised and issued 750,000 12% preference shares of #1 each to be issued at #1.50 per share. Applications for 1,370,000 were received at 30k per share; 70k per share (including premium) was due on allotment; 25k per share was due on each of the remaining two calls. Application money for 120,000 shares was refunded to unsuccessful applicants and the rest allotted pro-rata. The share premium account would be

• A. credited with application and allotment #187,500
• B. debited with application and allotment #375,000
• C. credited with application and allotment #375,000Correct
• D. debited with application and allotment #187,500