Company Accounts

An organization is being established primarily to promote sports, education, and charitable activities rather than for private monetary profit. Under corporate regulatory provisions, what key financial feature distinguishes this company limited by guarantee from a standard company limited by shares?

Zenith Ventures Plc forfeited $3,000$ ordinary shares of $₦1.00$ each for non-payment of the final call of $₦0.35$ per share. The company subsequently reissued $2,000$ of these forfeited shares to Mrs. Okafor at $₦0.80$ per share as fully paid up. What amount should be transferred to the Capital Reserve account?

Sterling Logistics Plc forfeited $1,000$ ordinary shares of $₦1.00$ nominal value each for non-payment of a call of $���0.30$ per share, after $₦0.75$ per share had been called up. The shareholder had paid $₦0.45$ per share prior to forfeiture. The shares were subsequently re-issued as fully paid for $₦0.80$ per share. What amount should be credited to the Capital Reserve Account upon re-issue?

Zenith Ventures Plc forfeited $800$ ordinary shares of $₦1.00$ nominal value each, called up to $₦0.80$ per share, due to non-payment of the first call of $₦0.30$ per share. Prior to forfeiture, the shareholder had paid $₦0.50$ per share. All $800$ forfeited shares were subsequently re-issued to a new investor as fully paid up for $��0.60$ per share. What is the net amount, in Naira ($₦$), to be credited to the Capital Reserve Account?

Match each share forfeiture and re-issue transaction on the left with its corresponding double-entry accounting treatment on the right.

Highland Beverages Plc offered for public subscription $70,000$ ordinary shares of nominal value $\text{₦}3.00$ each at an issue price of $\text{₦}3.50$ per share. If all the shares were fully subscribed and paid for, what is the total amount, in Naira ($\text{₦}$), credited to the Share Premium Account?

Match each type of company listed on the left with its defining statutory characteristic or legal restriction on the right.

Kresta Marine Services Plc issued $120,000$ ordinary shares of $\text{₦}1.50$ nominal value each at a premium of $10\%$. What is the total amount, in naira ($\text{₦}$), to be credited to the Share Premium Account?

Koko Industrial Plc offered $100,000$ ordinary shares of $\text{₦}2.00$ nominal value each at a premium of $20\%$. Payments were structured as follows:
- On application: $\text{₦}0.80$
- On allotment: $\text{₦}1.00$ (including the full share premium)
- On final call: $\text{₦}0.60$

If all shares were fully subscribed and allotted, what amount should be credited to the Ordinary Share Capital Account in respect of the allotment stage?

BlueWave Ltd issued $2,500$, $12\%$ debentures of $\text{₦}200$ each at par on 1st July 2024. Interest is payable semi-annually on 31st December and 30th June. What is the amount of debenture interest payable for the period ending 31st December 2024, in Naira ($\text{₦}$)?

Zenith Apex Logistics Plc issued $150,000$ ordinary shares of $\text{₦}2.00$ nominal value each at a premium of $15\%$. Payments were payable as follows:
- On Application: $\text{₦}0.50$ per share
- On Allotment: $\text{₦}1.00$ per share (including the full premium)
- On First and Final Call: $\text{₦}0.80$ per share

Applications were received for $200,000$ shares. Applications for $20,000$ shares were rejected and money refunded immediately. The surplus application money from the remaining applicants was transferred to offset the amount due on allotment. Calculate the net cash amount (in $\text{₦}$) received by the company on allotment.

When a limited liability company issues bonus shares to its existing ordinary shareholders by capitalizing reserves, what is the effect of this transaction on the company's total cash flow?

Vanguard Nigeria Plc issued $\text{₦}400,000$, $10\%$ debentures at a discount of $5\%$. Which of the following journal entries correctly records this transaction?

Zenith Engineering Ltd issued $5,000$, $10\%$ debentures of $\text{₦}100$ each at a discount of $4\%$. The terms of issue specify that the debentures are redeemable after five years at a premium of $5\%$. What is the total loss on issue of debentures to be written off over the tenure of the debentures?

Meridian Engineering Plc offered for public subscription $250,000$ ordinary shares of $\text{₦}2.50$ nominal value each at an issue price of $\text{₦}3.00$ per share. All the shares were fully subscribed and paid for in full. What is the total amount, in Naira ($\text{₦}$), to be credited to the Share Premium Account?

Match each transaction event relating to the forfeiture and re-issue of shares on the left with its correct double-entry accounting treatment on the right.

Danube Maritime Plc issued $50,000$ ordinary shares of $\text{₦}2.00$ nominal value each at an issue price of $\text{₦}2.50$ per share. All shares were fully subscribed and the money was received in full. What is the correct accounting treatment for the total excess proceeds of $\text{₦}25,000$ received above the nominal value?

Sterling Heights Plc has an issued share capital of $2,000,000$ ordinary shares of $\text{₦}0.50$ each. The company makes a rights issue of $1$ new share for every $4$ ordinary shares held at an issue price of $\text{₦}0.75$ per share. If all rights are fully subscribed and paid for, what is the total cash proceeds raised from the rights issue in Naira?

Kano Logistics Plc issued $\text{₦}100,000$, $8\%$ debentures at par on 1st January 2025. What is the total annual debenture interest payable by the company for the year ended 31st December 2025?

Meridian Marine Plc has an issued share capital of $1,600,000$ ordinary shares of $\text{₦}0.50$ each. The board of directors resolves to make a rights issue of $1$ new ordinary share for every $4$ shares held at an issue price of $\text{₦}0.80$ per share. If all shareholders exercise their rights in full, what is the total amount that will be credited to the Share Premium account from this transaction?