JAMB Accounting 2014 Objective — Question 44

Question 44 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2014 Objective paper, with the correct answer and a full explanation.

Payment for shares in excess of the amount offered gives rise to

A. subscription in advance
B. revenue reserves
C. capital reserves
D. calls-in-advanceCorrect

Explanation

When shares money are paid in excess, the payer has made an advance call payment. Thus, whenever there is a call, the payer has already made his/her payment.

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