WAEC Accounting 2016 Paper

Concept:Only the shares that investors actually subscribe and pay for are counted as the capital taken up from the public.Explanation:Oruma Ltd issued $300{,}000$ shares. Applications were received for only $200{,}000$ shares.This means the public subscribed to $200{,}000$ shares, and all these applicants paid in full.The remaining portion was not taken up by applicants in this offer.At the share price implied by the options, each share is $\mathrm{N}1$.So the subscription capital is calculated as:$$200{,}000 \times \mathrm{N}1 = \mathrm{N}200{,}000$$Therefore, the share capital represented by the fully paid applications is $\mathrm{N}200{,}000$.Answer:C. $\mathrm{N}200{,}000$