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JAMB Accounting 2011 Objective — Question 46

Question 46 of 49 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2011 Objective paper, with the correct answer and a full explanation.

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If Aboki Holdings Limited issued 120,000 ordinary shares of #2.00 each at market value of #5.50 each, the share premium would be

  • A. A. #500,000
  • B. B. #450,000
  • C. C. #550,000
  • D. D. #420,000Correct

Explanation

Share premium = (#5.50 - #2.00) x 120,000 = #3.50 x 120,000 = #420,000.

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