passwella.
Menu

WAEC Financial Accounting 2023 Question 29

Question 29

Company Accounts

Use the following information to answer questions 29 and 30.
Tauras Ltd. was incorporated with the legal right to issue five million ordinary shares. The company has issued three million of the shares at GH¢0.60 per share. To date, the company has made calls of GH¢0.40 per share. All calls have been paid by shareholders except for GH¢100,000 owing from one shareholder.
The paid-up share capital is

  1. A.GH¢3,000,000.
  2. B.GH¢2,000,000.
  3. C.GH¢1,200,000.
  4. D.GH¢1,100,000.
Show the answer and explanation

Answer: D (GH¢1,100,000.)

Explanation

Called up = 3,000,000 × 0.40 = 1,200,000; less calls in arrears 100,000 = GH¢1,100,000.