JAMB Accounting 2010 Objective — Question 44

Question 44 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2010 Objective paper, with the correct answer and a full explanation.

44. Given: 6,000,000 10% preference shares of 0.50 each 6,000,000; ordinary shares of 1 each 6,000,000; Capital reserves 2,700,0000; Long-term liabilities 4,000,000. Find the value of authorized share capital. A. 13 000000 B. 12 000 000 C. 9 000 000 D. 15 700 000

A. 13 000000
B. 12 000 000Correct
C. 9 000 000
D. 15 700 000

Explanation

Authorised share capital = 6,000,000 x N0.50 (preference shares) + 6,000,000 x N1 (ordinary shares) = N3,000,000 + N6,000,000; using the stated figures, the authorised share value totals N12,000,000.

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