Shares that are offered to existing shareholders at a price is called
Par
Premium
Right issue
Bonus issue
Correct answer is C
Right issue are offered to existing shareholders in a company.
An ordinary share of ₦100 was issued at ₦80. The share was issued at
Premium
Par
Discount
Loss
Correct answer is C
Share issued at discount is a situation whereby shares are quoted below the nominal value.
Opening stock Purchases Sales Closing Stocks |
₦ 20,000 70,000 100,000 15,000 |
What was the gross profit?
₦35,000
₦75,000
₦50,000
₦25,000
Correct answer is D
Gross profit = sales - cost of goods sold
100,000 - 75,000
⇒ ₦25,000
| Opening stock | ₦ |
| Department A B |
100 800 |
| Purchases: A B Wages of workers Salaries |
1500 2000 50 100 |
| Sales A B |
3000 5000 |
Expenses are to be shared in the ratio of sales.
What was the cost of goods sold?
₦25,000
₦35,000
₦50,000
₦75,000
Correct answer is D
Cost of goods sold = Opening stock + Purchases - closing stocks
20,000 + 70,000 - 15,000
⇒ ₦75,000
Discount received is charge to
Current account
Profit and loss
Trading account
Balance sheet
Correct answer is B
Discount received is treated as income to the business hence it is credited to the profit and loss.