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JAMB Principles of Accounts 1994 Question 39

Question 39

Company Accounts

A limited liability company has an authorized share capital of ₦50 million split into 100 million shares. 80 million shares were offered for subscription at 60k per share payable in full on application. These have been fully subscribed and issued.
What is the nominal value of each share?

  1. A.₦2
  2. B.₦0.80
  3. C.₦0.60
  4. D.₦0.50.
Show the answer and explanation

Answer: D (₦0.50.)

Explanation

Nominal value = authorised capital ÷ number of shares = ₦50 million ÷ 100 million = ₦0.50.