Accounting JAMB

Didi Ltd offered 10000 ordinary shares of N1.50 each at a discount of 2% which were fully subscribed. With regard to the offer above?

A. shares are never offered at a discount; the offer is invalid
B. the value of shares in the capital account will be lowered by 2%
C. the company incurs a loss to the tune of 2% of the offer
D. each of the subscribers loses 2% of investment

Correct Answer:

Option C – the company incurs a loss to the tune of 2% of the offer

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