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JAMB Commerce 2008 Question 15

Question 15

Business Calculations

Maimani Plc, whose nominal capital is made up of 5000 000 ordinary shares of 50k each, decided to offer 80% of it to the public and realised only 50% of the amount due.
Determine the company's reserve share capital

  1. A.N 2500 000
  2. B.N1000 000
  3. C.N1500 000
  4. D.N2000 000.
Show the answer and explanation

Answer: B (N1000 000)

Explanation

Shares offered = 80% × ₦2 500 000 = ₦2 000 000. Only 50% (₦1 000 000) was realised, so ₦1 000 000 is still to be received.