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JAMB Principles of Accounts 2001 Question 42

Question 42

Company Accounts

Use the information below to answer questions 41 and 42.
Given: (₦)
Authorized Capital: 100,000 ordinary shares of ₦1 each
Issued and fully paid: 50,000 ordinary shares of ₦1 each 50,000
10,000 8% preference shares of ₦1 each 10,000
Reserves 25,000
Creditors 15,000
Debtors 13,000
Cash in hand 5,000
Calculate the shareholders' fund

  1. A.₦60,000
  2. B.₦75,000
  3. C.₦85,000
  4. D.₦185,000.
Show the answer and explanation

Answer: C (₦85,000)

Explanation

Shareholders' fund = ordinary 50,000 + preference 10,000 + reserves 25,000 = ₦85,000.