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WAEC Financial Accounting 1999 Question 44

Question 44

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 unissued capital of the company is

  1. A.N310,000
  2. B.N300,000
  3. C.N210,000
  4. D.N100,000
Show the answer and explanation

Answer: D (N100,000)

Explanation

Authorised 300,000 − issued 200,000 = N100,000.