JAMB Principles of Accounts 2009 Question 43

A company advertised and issued 750,000, 12% preference shares of ₦1 each to be issued at ₦1.50 per share. Applications for 1,370,000 were received at 30k per share. 70k per share (including premium) was due on allotment while 25k per share was due on each of the remaining two calls. All amounts due were received. Application money for 120,000 shares was refunded to unsuccessful applicants and the remaining applicants were allotted shares on pro-rata basis.
The share premium account would be

1. A.credited with application and allotment ₦187,500
2. B.debited with application and allotment ₦375,000
3. C.credited with application and allotment ₦375,000
4. D.debited with application and allotment ₦187,500