Company Accounts

Kofar Ltd has an issued share capital of $500,000$ ordinary shares of $\text{₦}1.00$ each and a Share Premium balance of $\text{₦}150,000$. The company first makes a rights issue of $1$ new ordinary share for every $5$ existing shares held at an issue price of $\text{���}1.50$ per share, which is fully subscribed. Subsequently, the company makes a bonus issue of $1$ new ordinary share for every $4$ shares held, utilizing the Share Premium account to fund the issue as far as possible. What is the remaining balance in the Share Premium account after the capitalization for the bonus issue?

Match each category of share capital with its correct description in financial accounting.

Danford Oil Plc has an issued share capital of $1,200,000$ ordinary shares of $\text{₦}0.50$ each and a Share Premium balance of $\text{₦}180,000$. The company executes a rights issue of $1$ new ordinary share for every $4$ shares held at an issue price of $\text{₦}0.80$ per share, which is fully subscribed. Immediately thereafter, the company declares a bonus issue of $1$ new share for every $6$ ordinary shares held, utilizing the Share Premium account. What is the remaining balance in the Share Premium account after both transactions?

During the formation of a limited liability company, the promoters are required to prepare official documents for registration. Which document specifies the internal rules and regulations governing the duties of directors, voting rights of members, and the conduct of meetings?

Koko Nigeria Limited was registered with an authorized share capital of 1,000,000 ordinary shares of ₦1.00 each. The directors issued 600,000 ordinary shares to the public at par, all of which were fully subscribed and allotted. A call of ₦0.80 per share was subsequently made. All shareholders paid the call in full except for a holder of 25,000 shares who failed to pay. What is the paid-up share capital of Koko Nigeria Limited?

Zenith Logistics Plc offered for public subscription $50,000$ ordinary shares of $\text{₦}2.00$ each at a premium of $15\%$. If all the shares were fully subscribed and paid for, what total amount (in $\text{₦}$) will be credited to the Share Premium Account?

Match each accounting stage or balance associated with share forfeiture and re-issue with its appropriate ledger accounting treatment.

Apex Limited issued 2,000, 10% debentures of ₦100 each at a discount of 5% on 1st April 2024. If the company closes its accounting books on 31st December 2024, what is the amount of debenture interest to be charged to the Profit and Loss Account for the year?

Meridian Logistics Plc was registered with an authorized share capital of $5,000,000$ ordinary shares of $\text{₦}1.50$ each. The directors issued $3,000,000$ shares to the public and called up $\text{₦}1.00$ per share. If all called-up funds were received except a call of $\text{₦}0.20$ per share on $150,000$ shares, calculate the total paid-up share capital of the company in Naira.

During the formation of a enterprise, three promoters entered into pre-incorporation contracts to acquire operational machinery and paid preliminary legal fees. Following the issuance of the Certificate of Incorporation, the directors prepared to begin operations as a Public Limited Company. Which of the following correctly describes the legal standing of the pre-incorporation contracts and the statutory requirement the company must fulfill before it can lawfully commence business?

Apex Nigeria Limited was registered with an authorized share capital of $800,000$ ordinary shares of $\text{₦}1.00$ each. The directors offered $500,000$ shares to the public, which were fully subscribed and called up. If calls in arrears on $10,000$ shares at $\text{₦}0.20$ per share remain unpaid, what is the value of the company's paid-up share capital in Naira ($\text{₦}$)?

Match each category of share capital on the left with its correct definition on the right.

A business entity registered as a private limited company wants to raise additional capital by inviting the general public to subscribe for its shares. Which statutory step must the enterprise execute before issuing a prospectus to the public?

Apex Nigeria PLC was registered with an authorized capital of $2,000,000$ ordinary shares of $\text{₦}0.50$ each. The company issued $1,200,000$ of these shares to the public. To date, the directors have called up $\text{₦}0.40$ per share on all issued shares. Shareholders have paid all amounts due except for calls in arrears totaling $\text{₦}24,000$. What is the value of the company's paid-up share capital in Naira ($\text{₦}$)?

Match each statutory document or company structure on the left with its defining legal characteristic or statutory requirement on the right under corporate law.

Bamburu Plc issued $40,000$ ordinary shares with a nominal value of $\text{₦}1.00$ each at an issue price of $\text{₦}1.30$ per share. All shares were fully subscribed and paid for. What total amount should be credited to the Share Premium Account?

Merit Global Limited issued $80,000$ ordinary shares of nominal value $\text{���}5.00$ each at a discount of $10\%$. If all the shares were fully subscribed and paid for, what is the total amount to be credited to the Ordinary Share Capital account?

Match each scenario or rule regarding the forfeiture and re-issue of shares on the left with its appropriate accounting treatment on the right.

Orion Holdings Plc offered for public subscription $80,000$ ordinary shares of $\text{₦}2.00$ nominal value each at a discount of $5\%$. Payments were structured as follows: $\text{₦}0.70$ on application, $\text{₦}0.80$ on allotment (reflecting the full discount), and the remaining balance on final call. All shares were fully subscribed and all monies were received in full. Which of the following statements correctly states the total amount credited to the Share Capital Account and the accounting treatment of the Discount on Shares Account?

Goldline Enterprises Plc was registered with an authorized share capital of $1,500,000$ ordinary shares of $\text{₦}2.00$ each. The directors issued $900,000$ ordinary shares to the public, all of which were fully called up to $\text{₦}2.00$ per share. At the end of the financial year, all call payments were received except for a final call of $\text{₦}0.50$ per share on $50,000$ shares. What is the value of the paid-up share capital of the company in Naira?