Company Accounts

Kalu Nigeria Limited forfeited $500$ ordinary shares of $₦1.00$ each held by a shareholder for non-payment of the final call of $��0.30$ per share. What is the maximum discount per share the company can legally grant upon re-issuing these forfeited shares?

Apex Ventures Plc issued $60,000$ ordinary shares of nominal value $\text{₦}2.00$ each at an issue price of $\text{₦}2.50$ per share. All issued shares were fully subscribed and paid for. How should the total cash proceeds of $\text{₦}150,000$ be credited in the company's ledger accounts?

On 1st April 2025, Horizon Ltd issued $\text{₦}800,000$, $12\%$ debentures at a discount of $5\%$. Interest is payable semi-annually on 30th September and 31st March. What is the total amount of debenture interest (in $\text{₦}$) to be charged to the Profit and Loss Account for the financial year ended 31st December 2025?

Zenith Trading Plc has an issued ordinary share capital of $\text{₦}1,500,000$ made up of shares with a nominal value of $\text{₦}0.50$ each. The directors decide to issue rights to existing shareholders on the basis of $1$ new share for every $3$ shares held at an issue price of $\text{₦}0.80$ per share. If all shareholders fully subscribe to the rights issue, what is the total amount of cash proceeds received by the company?

When preparing a company's Statement of Profit or Loss, financial accountants present line items and key profit figures in a standardized vertical structure. How should the following financial deductions and intermediate totals be ordered from the top of the statement down to the final profit for the year?

Kano Allied Products Plc extracted the following balances from its trial balance for the year ended 31 December 2025:

- Gross Profit: ₦500,000
- Rent paid: ₦60,000
- Salaries paid: ₦90,000
- Existing Provision for Doubtful Debts: ₦12,000
- Trade Receivables: ₦160,000

Additional information at year-end:
1. Rent paid includes ₦10,000 prepaid for the next accounting year.
2. Salaries of ₦10,000 are accrued and unpaid.
3. Provision for doubtful debts is to be adjusted to 5% of Trade Receivables.

What is the net profit before taxation to be reported in the Statement of Profit or Loss?

The following balances were extracted from the books of Zenith Nigeria Plc as at 31st December 2025:

What is the balance of the Retained Earnings (Profit and Loss Account) as at 31st December 2025?

Apex Zenith Ltd has an authorized share capital of $1,000,000$ ordinary shares of $₦1$ each, out of which $600,000$ shares are fully issued and paid up. The company also has $200,000$, $5\%$ preference shares of $₦1$ each. For the year ended 31st December 2025, the net profit before appropriations was $₦150,000$.

The directors resolved to:
- Transfer $₦30,000$ to General Reserve
- Pay preference share dividends in full
- Pay a $10\%$ dividend on ordinary shares

What is the balance of retained profit carried forward to the Statement of Financial Position?

Match each company reserve in Column A with its correct definition and statutory characteristic in Column B.

Chidubem Ventures PLC has an authorized capital of ₦500,000 divided into 1,000,000 ordinary shares of 50k each. Out of these, 600,000 shares have been issued and fully paid-up. If the directors declare a dividend of 8% on ordinary share capital, what is the total dividend amount to be debited to the Profit and Loss Appropriation Account?

Kolawole Nigeria Ltd has an authorized share capital of $500,000$ ordinary shares of ₦1 each, of which $300,000$ shares are fully issued and paid-up. If the directors declare a dividend of $10\%$ on ordinary shares, what is the total amount of dividend payable?

Apex Plc has an issued share capital of $800,000$ ordinary shares of $\text{₦}0.50$ each. The company announces a bonus issue of $1$ new ordinary share for every $4$ shares held. Following the completion of the bonus issue, the company makes a rights issue of $1$ new ordinary share for every $5$ existing shares held at an issue price of $\text{₦}1.20$ per share. What is the total value of the company's issued ordinary share capital in Naira ($\text{₦}$) after both the bonus issue and rights issue are fully executed?

Match each accounting transaction event during the forfeiture and re-issue of shares to its corresponding journal entry debit or credit treatment.

In what chronological order should the following steps and figures be derived when preparing a company's Statement of Profit or Loss (Income Statement) in accordance with standard accounting principles?

When forfeited shares are re-issued at a price that leaves a net profit after covering all defaulted calls, to which of the following accounts is this profit transferred?

Bello Plc has an authorized share capital of 800,000 ordinary shares of ₦1 each, out of which 400,000 ordinary shares are fully issued and paid up. If the directors propose a final dividend of 12% on the paid-up capital, what is the total amount payable as dividends to the ordinary shareholders?

Match each company type or corporate document on the left with its correct legal characteristic or purpose on the right.

Apex Nigeria Plc issued ordinary shares of ₦1.00 each at a premium of ₦0.20 per share, payable as follows:
- On Application: ₦0.30
- On Allotment: ₦0.40 (including the premium of ₦0.20)
- On First Call: ₦0.30
- On Final Call: ₦0.20

A shareholder holding 1,000 shares paid the application and allotment monies but defaulted on both the first call and final call. The company forfeited these 1,000 shares and subsequently re-issued them to another investor as fully paid up at ₦0.70 per share. What is the net amount to be transferred to the Capital Reserve Account?

Koko Plc offered $100,000$ ordinary shares of $\text{₦}1.00$ each at a premium of $20\%$. Payment terms per share were as follows:
- On application: $\text{₦}0.30$
- On allotment: $\text{₦}0.40$ (including the full premium)
- On first and final call: $\text{₦}0.50$

Applications were received for $120,000$ shares. The company allotted shares on a pro-rata basis to all applicants, with surplus application money applied towards the amount due on allotment. If all monies due on allotment were paid, what is the net cash amount (in Naira) received on allotment?

Vanguard Enterprise Plc had an issued share capital of $1,000,000$ ordinary shares of $\text{₦}0.50$ each and a Share Premium account balance of $\text{₦}120,000$. The company declared a bonus issue of $1$ new ordinary share for every $5$ shares held, utilizing the Share Premium account to fund the bonus shares. Immediately following the bonus issue, the company made a rights issue of $1$ new ordinary share for every $4$ shares held at an issue price of $\text{₦}0.80$ per share. What is the final balance of the Share Premium account (in $\text{₦}$) after both transactions are completed?