Question on: JAMB Accounting - 2022
Mamsa Nigeria Limited issued 20 000 ordinary shares of N1.50 per share on 2nd July 2002.
1500 ordinary shares were fully subscribed for and their monies received as below:
On application .........................N0.40
On allotment ...........................N0.20
First call (including premium ofN0.50)..N0.70
What is the balance of the ordinary share capital account after the first call was received?
A
N300
B
N1050
C
N2400
D
1950
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Correct Option: C
Here's how to calculate the balance of the ordinary share capital account:
1. **Calculate the total value of shares issued:** The question states 20,000 ordinary shares of N1.50 were issued. However, the question provides the information regarding the 1,500 shares only. The amount to be recorded is the amount received for the 1,500 shares.
2. **Calculate the amount received on application:**
* Number of shares = 1,500
* Application money per share = N0.40
* Total application money received = 1,500 shares \* N0.40 = N600
3. **Calculate the amount received on allotment:**
*
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