Use the following information to answer the question
Taurus Ltd was incorporated with the legal right to issue five million ordinary shares. The company has issued three million of the shares at GH⊄ 0.60 per share. To date, the company has made calls of GH⊄ 0.40 per share. All calls have been paid by shareholders except for GH⊄ 100,000 owing from one shareholder.
The paid up share capital is
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.
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