Tale LTd. has 100,000 ordinary shares of ₦1 each and 60,000 5% preference shares of ₦1 each. Both were fully paid as shown below, \(\begin{array}{c|c} & ₦\\...
Question 1 Report
Tale LTd. has 100,000 ordinary shares of ₦1 each and 60,000 5% preference shares of ₦1 each. Both were fully paid as shown below,
\(\begin{array}{c|c} & ₦\\ \text{Profit and loss appropriation b/f} & 10,000\\ \text{Net profit for the year} & 6,000\\ \text{Proposed dividend on ordinary shares} & 4,000\\ \text{Interim dividend} & 6,000\\ \text{Goodwill written off} \\ 600\end{array}\)
The authorized capital of Tale Ltd is
\(\begin{array}{c|c} & ₦\\ \text{Profit and loss appropriation b/f} & 10,000\\ \text{Net profit for the year} & 6,000\\ \text{Proposed dividend on ordinary shares} & 4,000\\ \text{Interim dividend} & 6,000\\ \text{Goodwill written off} \\ 600\end{array}\)
The authorized capital of Tale Ltd is
Answer Details
The authorized capital is the maximum amount of share capital that a company can issue to the public. The information provided in the question does not directly reveal the authorized capital of Tale Ltd, so we cannot determine the answer with certainty. We only know that the company has issued 100,000 ordinary shares of ₦1 each and 60,000 5% preference shares of ₦1 each, which were fully paid. However, we can calculate the total issued share capital by adding the values of the ordinary and preference shares, which gives a total of ₦160,000. Therefore, the closest answer to this question is ₦160,000.
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