JAMB Accounting 2010 Objective — Question 47

Question 47 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2010 Objective paper, with the correct answer and a full explanation.

47. An ordinary share of 80 was issued at 96. The share was A. issued at a premium B. par C. discount D. loss

A. issued at a premiumCorrect
B. par
C. discount
D. loss

Explanation

When a share is issued above its par value, then it is said to be issued at a premium; if below, it is said to be issued at a discount.

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