If you are preparing for an accounting aptitude test or even a job interview, these accounting questions and answers will help you master the principles of accounting. This test covers accounting past questions from WAEC, JAMB, Post UTME exams and many more.
Use the following information and answer the question below.
Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The authorized share capital is
N300,000
N250,000
N200,000
N150,000
Correct answer is A
The authorized capital of a company is the maximum amount of share capital that the company is authorized by its constitutional documents to issue to shareholders.
Use the following information and answer the question below.
Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The unsubscribed share capital is
N300,000
N250,000
N200,000
N150,000
Correct answer is D
No explanation has been provided for this answer.
Use the following information and answer the question below.
Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The subscribed share capital is
N300,000
N250,000
N200,000
N150,000
Correct answer is C
No explanation has been provided for this answer.
When allotments have been fully paid, subscribers are referred to as
Allotters
Applicants
Non-members
Shareholders
Correct answer is B
No explanation has been provided for this answer.
Capital account
Appropriation account
Drawings account
Profit and loss account
Correct answer is B
Interest on drawings is an income to the firm, and hence it is credited to the profit and loss appropriation account. On the other hand, interest on drawings is an expense to the partners, and hence it is debited to their capital accounts and credited to appropriation.