To determine the amount received on the final call for Badge Plc's shares, we need to break down the information provided and calculate the amount received during the final call step by step.
Step-by-Step Explanation
- Understanding the Share Issue:
- Badge Plc issued 450,000 ordinary shares with a nominal value of 50k each.
-
The shares were issued at a price of #1.50 per share.
-
Calculating Total Amount Received on Share Issue:
-
The total amount received from the share issue can be calculated as follows:
[
\text{Total Amount Received} = \text{Number of Shares} \times \text{Issue Price}
]
[
\text{Total Amount Received} = 450,000 \times 1.50 = #675,000
]
-
Understanding the Calls:
-
The share capital is collected in stages through calls:
- Application and Allotment: #0.45 per share (45k)
- 1st Call: #0.50 per share (50k)
- 2nd Call: #0.55 per share (55k)
-
Calculating Amount Received from Each Call:
- Application and Allotment:
[
\text{Amount from Application and Allotment} = 450,000 \times 0.45 = #202,500
]
- 1st Call:
[
\text{Amount from 1st Call} = 450,000 \times 0.50 = #225,000
]
-
2nd Call:
[
\text{Amount from 2nd Call} = 450,000 \times 0.55 = #247,500
]
-
Determining the Amount Received on Final Call:
- The final call is the 2nd Call, which is #0.55 per share.
- Therefore, the total amount received on the final call is:
[
\text{Amount Received on Final Call} = 450,000 \times 0.55 = #247,500
]
Conclusion
The correct answer is
C. #247,500.
Explanation of Other Options
- Option A: #225,000: This amount corresponds to the total received from the 1st Call, not the final call.
- Option B: #236,250: This amount does not correspond to any of the calls and seems to be a miscalculation.
- Option D: #202,500: This amount corresponds to the total received from the Application and Allotment, not the final call.
Revision Summary
- Badge Plc issued 450,000 shares at #1.50 each, totaling #675,000.
- The final call (2nd Call) is #0.55 per share, leading to #247,500 received.
- The amounts from the Application and Allotment and 1st Call are distinct and should not be confused with the final call amount.
- Always ensure to calculate each stage of share calls separately to avoid errors.