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WAEC Commerce 1999 Question 14

Question 14

Business Calculations

A Public Limited Company whose nominal capital is made up of 400,000 ordinary shares of 50k each, decided to issue 50% of it to the public and realised only 50% of the amount due.
What is the called up-capital?

  1. A.N50,000.00
  2. B.N100,000.00
  3. C.N200,000.00
  4. D.N400,000.00
Show the answer and explanation

Answer: B (N100,000.00)

Explanation

The amount demanded on the 200,000 issued shares is 200,000 × 50k = N100,000.