WAEC Accounting 2023 Objective — Question 29

Question 29 of 50 from the West African Examinations Council (WAEC) Accounting 2023 Objective paper, with the correct answer and a full explanation.

(Tauras Ltd was incorporated with the legal right to issue 5 million ordinary shares. The company has issued 3 million shares at GH¢0.60 per share. To date, calls of GH¢0.40 per share have been made, all paid except 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.Correct

Explanation

Paid-up capital = (0.40 × 3,000,000) - 100,000 (unpaid call) = 1,200,000 - 100,000 = GH¢1,100,000.

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