Waec Model Questions Vol1 2020 Financial Accounting Question 49

Alpha Ltd had the following equity items at the beginning of the year: - Share capital (ordinary) N500,000 (par value N100 per share) - Share premium N150,000 - Retained earnings N200,000 During the year the following transactions occurred: 1. The company issued 5,000 new ordinary shares at N150 each. 2. It declared and paid a dividend of N20 per share on all ordinary shares outstanding at the time of payment (including the newly issued shares). 3. It repurchased (bought back) 2,000 of its own shares at N180 each. The repurchase is accounted for by first reducing share capital (at par value) and then reducing share premium for the balance. At year‑end the retained earnings were N210,000. What is the amount of share premium remaining at year‑end?