JAMB Commerce 2010 Paper

Concept:Issued capital is the value of the shares actually sold to the public.It is found by multiplying the number of issued shares by the issue price per share.Authorized capital is only the maximum the company may issue.Explanation:The company issued 36,000 shares at $\mathrm{N}1.50$ each.Therefore, issued capital is:$$36{,}000 \times \mathrm{N}1.50 = \mathrm{N}54{,}000$$This issued capital does not exceed the authorized capital of $\mathrm{N}60{,}000$.Hence, the company's capital (value of shares issued) is $\mathrm{N}54{,}000$.Answer:C. $\mathrm{N}54{,}000$