Waec Model Questions Vol1 2024 Commerce Question 38

Practice objective / multiple choice question 38 from the 2024 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2024 Commerce Objective / Multiple Choice Medium Difficulty
Question 38 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • COMMERCE • objective

A private limited company has an authorized share capital of 1,000,000 shares of ₦10 each. It initially issues 400,000 shares at ₦12 per share (including premium). The company now wishes to issue bonus shares at a ratio of 1 bonus share for every 4 existing shares, using the share‑premium account. Determine (i) the total number of shares after the bonus issue, (ii) the amount transferred from the share‑premium account to share capital, and (iii) whether any share‑premium remains after the issue.

Answer Options

A. Total shares: 500,000; Amount transferred: ₦800,000; Share‑premium remaining: ₦0
B. Total shares: 480,000; Amount transferred: ₦800,000; Share‑premium remaining: ₦100,000
Correct Answer C. Total shares: 480,000; Amount transferred: ₦800,000; Share‑premium remaining: ₦0
D. Total shares: 480,000; Amount transferred: ₦600,000; Share‑premium remaining: ₦200,000
Correct Answer
C
Correct Option:
Total shares: 480,000; Amount transferred: ₦800,000; Share‑premium remaining: ₦0

About This Question

This is Waec Model Questions Vol1 2024 Commerce Question 38. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

View More Waec Model Questions Vol1 2024 Commerce Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support