Waec Model Questions Vol1 2021 Financial Accounting Question 24

Practice objective / multiple choice question 24 from the 2021 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 24 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

XYZ Ltd reported the following equity items at 31 December 2021: Share capital (ordinary) ₦10,000,000; Share premium ₦2,500,000; Retained earnings ₦3,200,000; Treasury shares (cost) ₦800,000 (1,000 shares at ₦800 each). During 2022 the company: - Issued 500 new ordinary shares at ₦12 each (par value ₦10). - Purchased additional treasury shares costing ₦500,000. - Declared and paid a dividend of ₦1 per share on all ordinary shares outstanding at the beginning of the year (excluding treasury shares). - Reported profit after tax of ₦1,800,000. Prepare the statement of changes in equity for 2022 and state the total equity at 31 December 2022.

Answer Options

Correct Answer A. Total equity at 31 December 2022 = ₦15,207,000
B. Total equity at 31 December 2022 = ₦14,707,000
C. Total equity at 31 December 2022 = ₦15,207,500
D. Total equity at 31 December 2022 = ₦15,307,000
Correct Answer
A
Correct Option:
Total equity at 31 December 2022 = ₦15,207,000

About This Question

This is Waec Model Questions Vol1 2021 Financial Accounting Question 24. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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