A company had an authorized share capital of 30,000. It offered applicants N20,000 share capital out of which the company collected N15,000. What was the pa...

A company had an authorized share capital of 30,000. It offered applicants N20,000 share capital out of which the company collected N15,000.
What was the paid-up capital?

Answer Details

Authorized share capital is the maximum amount of shares that a company can issue to its shareholders. In this case, the authorized share capital of the company is N30,000. The company offered N20,000 worth of shares to interested applicants. However, it only collected N15,000 from the applicants. This means that the total value of the shares that were actually issued and paid for is N15,000. Paid-up capital refers to the actual amount of money that a company has received from its shareholders in exchange for the shares issued. In this case, since the company only collected N15,000 for the shares it issued, the paid-up capital of the company is also N15,000. Therefore, the answer to the question is N15,000.