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WAEC Financial Accounting 1999 Question 43

Question 43

Company Accounts

Umana Ltd., issued 200,000 shares at N1 each out of its Authorised Share capital of N300,000 at N1 each. At the end of the first call, all shareholders paid in full, except for one Shareholder who owes N10,000.
The company's paid-up capital is

  1. A.N310,000
  2. B.N290,000
  3. C.N210,000
  4. D.N190,000.
Show the answer and explanation

Answer: D (N190,000.)

Explanation

Called up 200,000 − calls in arrears 10,000 = N190,000 paid up.