NABTEB Accounting 2023 Objective — Question 29
Question 29 of 50 from the National Business and Technical Examinations Board (NABTEB) Accounting 2023 Objective paper, with the correct answer and a full explanation.
Advertisement
Taurus Ltd was incorporated with the legal right to issue five million ordinary shares at GH¢0.60 per share. The company has issued three million of the shares. 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 (a) GH¢3,000,000 (b) GH¢2,000,000 (c) GH¢1,200,000 (d) GH¢1,100,000
- A. GH¢3,000,000
- B. GH¢2,000,000
- C. GH¢1,200,000
- D. GH¢1,100,000Correct
Explanation
Called-up capital = 3,000,000 shares x GH¢0.40 = GH¢1,200,000. Paid-up capital = Called-up capital - Amount owing = 1,200,000 - 100,000 = GH¢1,100,000.
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.