Koko Nigeria Limited was registered with an authorized share capital of 1,000,000 ordinary shares of ₦1.00 each. The directors issued 600,000 ordinary shares to the public at par, all of which were fully subscribed and allotted. A call of ₦0.80 per share was subsequently made. All shareholders paid the call in full except for a holder of 25,000 shares who failed to pay. What is the paid-up share capital of Koko Nigeria Limited?
- ₦460,000Answer
- B₦480,000
- C₦500,000
- D₦580,000
Answer
₦460,000
The paid-up capital is the total money received from shareholders for shares called up. Subtracting calls in arrears of ₦20,000 (25,000 shares × ₦0.80) from called-up capital of ₦480,000 (600,000 shares × ₦0.80) yields ₦460,000.
Step-by-Step Solution
Key Concept
Classification and calculation of paid-up share capital from called-up capital and calls in arrears.