Neco Model Questions Vol1 2021 Financial Accounting Question 11
Practice objective / multiple choice question 11 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Alpha Ltd. had opening retained earnings of \(₦1,200,000\) on 1 January 2021. During the year the following events occurred: (i) Net profit before tax of \(₦480,000\); tax expense is \(30\%\) of profit before tax. (ii) An interim dividend of \(10\%\) of the ordinary share capital of \(₦2,000,000\) was declared and paid. (iii) The company issued 5,000 new ordinary shares with a par value of \(₦100\) each at a premium of \(₦150\) per share. (iv) It bought back 2,000 of its own shares at \(₦180\) per share. (v) The company revalued its property, increasing the revaluation surplus by \(₦250,000\). Assuming the opening share capital was \(₦2,000,000\), compute the closing balance of shareholders' equity on 31 December 2021.
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About This Question
This is Neco Model Questions Vol1 2021 Financial Accounting Question 11. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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