Question

8. Manka Ltd. had an authorized capital of 100,000 shares of D40 each, out of which 50,000 shares were fully subscribed and allotted as at December 31, 2024. Other assets and liabilities were: Creditors D40,000; Motor van D100,000; Buildings D500,000; Stock D40,000; Debtors D15,000; Cash D10,000.
You are required to calculate:
(a) issued capital; (b) unissued capital; (c) total assets; (d) working capital.

Accepted Answer

(a) Issued capital = Price per share × Number of shares issued = D40 × 50,000 = D2,000,000
(b) Unissued capital = Price per share × Number of unissued shares = D40 × 50,000 = D2,000,000
(c) Total assets = D(100,000 + 500,000 + 40,000 + 15,000 + 10,000) = D665,000
(d) Working capital = Current assets − Current liabilities = D(40,000 + 15,000 + 10,000) − D40,000 = D25,000

WAEC Commerce 2025 Theory — Question 24

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