Worked example on Share Capital Example

Oprimo Ltd was incorporated with a capital of N300,000 comprising 600,000 ordinary shares of
50k each. On January 1st, 1994, the company issued prospectus for
the issue of 300,000 shares under the following payment conditions.
            On application
(February 1994) 10k
            On allotment (March
1994) 171/2
            On 1st call (July 1994)
15k
            On final call (October
1994) 71/2

The public applied for 300,000 shares paying duly the application money
and the shares were consequently allocated to them. As at August 31st 1994,
Felix who was allotted 10,000 shares failed to pay the call money.
(i)        The authorized share
capital
(ii)        The issued share
capital
(iii)       The called up capital
(iv)      The calls in arrears
(v)       The paid up capital
(vi)      The uncalled capital
SOLUTION
(i)        Authorized share capital
            600,000 shares x 50k = N300,000
(ii)        Issued share capital
            300,000 shares at 50k
each =
N150,000
(iii)       Called up capital
            Amount so far called up
= 10k + 171/2k + 15k (up to 31/08/94)
                                    =
         421/2k
                                    =
         30,000 shares x 421/2k
                                    =          N127,500
(iv)      The calls in
arrears/unpaid capital
 10,000
shares at 15k =
N1,500
(v)       Paid up capital
            =          Called up less calls in arrears
            =          N127,500 – N1,500
            =          N126,000
(vi)      Uncalled up capital
            =          300,000 shares x 2nd   called money
            =          300,000 shares x 71/2k
            =          N22,500

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