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.
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
(February 1994) 10k
On allotment (March
1994) 171/2
1994) 171/2
On 1st call (July 1994)
15k
15k
On final call (October
1994) 71/2
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.
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
capital
(ii) The issued share
capital
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
each =
(iii) Called up capital
Amount so far called up
= 10k + 171/2k + 15k (up to 31/08/94)
= 10k + 171/2k + 15k (up to 31/08/94)
=
421/2k
421/2k
=
30,000 shares x 421/2k
30,000 shares x 421/2k
= N127,500
(iv) The calls in
arrears/unpaid capital
arrears/unpaid capital
10,000
shares at 15k =N1,500
shares at 15k =
(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