Use the following to answer this question.
Industry ltd, issued 100,000 shares at ₦1 each out of its Authorized share capital of ₦200,000 at ₦1 each. At the of the first call, all shareholders paid in full, except for two shareholder who owes ₦20,000.
The company’s paid-up capital is
-
A.
#70,000 -
B.
₦80,000 -
C.
₦220,000 -
D.
₦120,000
Correct Answer: Option B
Explanation
Paid up capital is the total amount paid up or credited as paid up, on the issued share capital.
From the question above, the issued share capital is ₦100,000 and two of the shareholder owes ₦20,000. Therefore, the paid up is 100,000 – 20,000 = ₦80,000.