A joint stock company issued ten thousand $2, six percent shares at a premium of 12.5 percent, all of which were fully subscribed and duly paid up
How much money would be recorded as the share capital?
a. $10.000
b. $20.000
c. $21200.00
d. $21500.00
d
d
a
To calculate the share capital, we need to multiply the number of shares issued by the face value of the shares.
In this case, the joint stock company issued 10,000 shares with a face value of $2. So, the face value of the shares is 10,000 shares multiplied by $2, which equals $20,000.
However, since the shares were issued at a premium of 12.5%, we need to add the premium to the face value. The premium is calculated as a percentage of the face value, so it is 12.5% of $20,000, which is (0.125 x $20,000) = $2,500.
Therefore, the total share capital is the face value plus the premium:
$20,000 (face value) + $2,500 (premium) = $22,500.
None of the options provided matches the calculated share capital. It seems there might be an error in the options provided or in the calculation. Please double-check the available options or verify the given information to determine the correct answer.