Use the following information to answer the question
GH⊄ 300,000
GH⊄ 250,000
GH⊄ 500,000
GH⊄ 600,000
Correct answer is D
The paid-up share capital is the portion of the share capital that has been paid by the shareholders.
In this case, Taurus Ltd has issued three million ordinary shares at GH⊄ 0.60 per share. This means that the total value of the issued shares is:
3,000,000 shares * GH⊄ 0.60 per share = GH⊄ 1,800,000
The company has made calls of GH⊄ 0.40 per share, and all calls have been paid by shareholders except for GH⊄ 100,000 owing from one shareholder.
So the total amount of calls that have been paid is:
3,000,000 shares * GH⊄ 0.40 per share = GH⊄ 1,200,000
Therefore, the paid-up share capital is the total value of the issued shares minus the total amount of calls paid, which is:
GH⊄ 1,800,000 - GH⊄ 1,200,000 = GH⊄ 600,000
Therefore, the correct answer is GH⊄ 600,000.
Discount allowed is shown in financial statements as
An asset
An income
A liability
An expenses
Correct answer is D
Expenses are total amount paid or to be paid for resources used in the accounting period e.g wages, electricity, discount allowed, carriage outward etc.
₦5,000
₦8,000
₦2,000
₦3,000
Correct answer is B
No explanation has been provided for this answer.
₦3,000
₦4,000
₦1,000
₦2,000
Correct answer is B
No explanation has been provided for this answer.
Lighting and cooling expenses
Carriage outwards
Carriage inwards
Selling and distribution expenses
Correct answer is C
Carriage inwards, discounts received are suggested basis of allocation for purchases.