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Use the information below to answer questions 43 and 44.A company advertised and...


Question

Use the information below to answer questions 43 and 44.

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 om 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 were allotment shares on pro-rata basis.

The share premium account would be?

Options

A)
credited with application and allotment ₦187, 500
B)
debited with appllication and allotment ₦375,000
C)
credited with application and allotment ₦375, 000
D)
debited with application and allotment ₦187, 500

The correct answer is C.


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