Question 18
Business CalculationsUse the information below to answer questions 17 and 18.
Maimani Plc, whose nominal capital is made up of 5,000,000 ordinary shares of 50k each, decided to offer 80% of it to the public and realized only 50% of the amount due.
Determine the company's reserve share capital
- A.₦2,000,000
- B.₦2,500,000
- C.₦1,500,000
- D.₦1,000,000
Show the answer and explanation
Answer: D (₦1,000,000)
Explanation
Shares offered = 80% × 2,500,000 = ₦2,000,000. Only 50% (₦1,000,000) was received, so ₦1,000,000 remains uncalled as reserve capital.