Neco 2021 Financial Accounting Question 32
Practice objective / multiple choice question 32 from the 2021 Neco Financial Accounting examination.
A company has an authorized share capital of 10,000 shares with a nominal value of ₦500 each. Six thousand shares are fully paid and four thousand shares are partly paid at ₦200 each. The company now calls up the remaining unpaid amount on the partly paid shares, offering a 5% discount on the call price (the call price is the nominal value).\n(a) How much cash will the company receive from this call?\n(b) The company also declares a bonus issue of one share for every five fully paid shares, using retained earnings of ₦2,000,000. Is the retained earnings sufficient and, if so, what is the total number of issued shares after the bonus issue?
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About This Question
This is Neco 2021 Financial Accounting Question 32. It is one of the objective questions from the 2021 Neco Financial Accounting examination.
Difficulty level: Hard .
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