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WAEC Commerce 2015 Question 13

Question 13

Business Calculations

Use the following information: Bamidele Co. Ltd has authorized capital of 40,000,000 ordinary shares of ₦4 each. Shares issued and fully paid are 25,000,000.
The unissued capital amounts to

  1. A.₦160,000,000.
  2. B.₦60,000,000.
  3. C.₦40,000,000.
  4. D.₦15,000,000.
Show the answer and explanation

Answer: B (₦60,000,000.)

Explanation

Unissued shares = 40,000,000 − 25,000,000 = 15,000,000 × ₦4 = ₦60,000,000.