Question

10. Ade Company Limited has an authorized capital of 80,000 of ₦20 each, out of which #30,000 shares have been fully subscribed by the public and allotted as at 31st March 2006. Other assets and liabilities were:
Creditors #35,000
Motor van #90,000
Buildings #65,000
Stock #60,000
Debtors #15,000
Cash #5,000
You are required to calculate: (a) Issued capital; (b) Unissued capital; (c) Total Assets; (d) Working capital

Accepted Answer

(a) Issued capital = #20×30,000 = #600,000.

(b) Unissued capital = #20×(80,000−30,000) = #20×50,000 = #1,000,000.

(c) Total assets = #(90,000+65,000+60,000+15,000+5,000) = #235,000.

(d) Working capital = current assets − current liabilities = #(60,000+15,000+5,000)−35,000 = #45,000.

WAEC Commerce 2012 Theory — Question 10

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