Use the following to answer this question. Industry ltd, issued 100,000 shares at #1 each
FINANCIAL
JAMB 2019
Use the following to answer this question.
Industry ltd, issued 100,000 shares at #1 each out of its Authorized share capital of #200,000 at #1 each. At the of the first call, all shareholders paid in full, except for two shareholder who owes #20,000.
The company's paid-up capital is
- A. #70,000
- B. #80,000
- C. #220,000
- D. #120,000
Correct Answer: B. #80,000
Explanation
Paid up capital is the total amount paid up or credited as paid up, on the issued share capital. From the question above, the issued share capital is #100,000 and two of the shareholder owes #20,000. Therefore, the paid up is 100,000 - 20,000 = #80,000.
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