JAMB Accounts Principles of Accounts 2019 Paper

Concept:Paid-up capital is the actual amount received from shareholders on issued shares.Explanation:The company issued $100{,}000$ shares at $\text{₦}1$ each.So, the total issued share capital is $\text{₦}100{,}000$.The unpaid amount owed by the two shareholders is $\text{₦}20{,}$? No. Wait, let's rewrite in final clean way maybe.We need final correct output. Let's construct:Concept:Paid-up capital means the portion of issued share capital that has actually been paid for by shareholders.Explanation:Issued shares are $100{,}000$ shares at $\text{₦}1$ each.Therefore, the total issued capital is $\text{₦}100{,}000$.The shareholders still owe $\text{₦}20{,}000$; this is unpaid capital.Subtract the unpaid amount from the issued capital.Paid-up capital $= \text{₦}100{,}000 - \text{₦}20{,}000 = \text{₦}80{,}000$.The authorized share capital of $\text{₦}200{,}000$ is not relevant to this calculation.Answer:$\text{₦}80{,}000$ (Option B).