NECO Accounting 2023 Objective — Question 29
Question 29 of 50 from the National Examinations Council (NECO) Accounting 2023 Objective paper, with the correct answer and a full explanation.
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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.
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