An issue of 50 000 shares at $3 required $2.20 per share to be paid at the time of application. On allotment, another $0.30 was due and a further $0.50 when determined by the board of directors. The application money in respect of the 50 000 shares was received on 8 July. On 26 July, the shares were issued with the amount due on allotment received on 15 August. The remaining $0.50 was called up on 20 September and received on 10 October. What was the balance of share capital at 11 October?
A) $25 000
B) $125 000
C) $150 000
D) $110 000

Question

Quizplus · Accepted Answer

- Application money received on 8 July = 50,000 shares x $2.20 = $110,000
- Amount due on allotment = 50,000 shares x $0.30 = $15,000
- Total amount received on allotment = $15,000
- Amount due on call = 50,000 shares x $0.50 = $25,000
- Total amount received on call = $25,000
- Total share capital = (50,000 shares x $3) = $150,000

Therefore, the balance of share capital at 11 October is the total share capital of $150,000.

An Issue of 50 000 Shares at $3 Required $2