Use the information below to answer this question A company advertised and issued 750,000, 12%...

JAMB 2021

Use the information below to answer this question

A company advertised and issued 750,000, 12% preference shares of N1 each to be issued ₦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 prorata basis.

The second final call account was debited with

A. ordinary share capital account ₦187,500
B. 12% preference share capital account ₦187,500
C. 12% preference share capital ₦375,000
D. bank account ₦187,500

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Correct Answer: Option B

Explanation

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