WAEC Accounting 2016 Paper

Concept:Subscribed share capital means the amount of money received from shares that applicants have actually applied for and taken up.It is not based on the total shares offered, but only on the shares successfully applied for.Explanation:Oruma Ltd offered $300{,}000$ ordinary shares for sale.However, applications were received for only $200{,}000$ shares.Since all applicants paid in full, the subscribed shares remain $200{,}000$ shares.At the issue price of $\mathrm{N}1$ per share, the subscribed share capital is calculated as:$$\text{Subscribed capital} = \text{Number of subscribed shares} \times \text{Issue price}$$$$= 200{,}000 \times \mathrm{N}1 = \mathrm{N}200{,}000$$Thus, the subscribed share capital is $\mathrm{N}200{,}000$.Answer:C. $\mathrm{N}200{,}000$