To determine the issued capital of the limited liability company, we need to understand the definitions and calculations involved in share capital. Definitions:

1. Authorized Share Capital: This is the maximum amount of share capital that a company is allowed to issue to shareholders as stated in its memorandum of association. In this case, the authorized share capital is N50 million.
2. Issued Capital: This refers to the portion of the authorized share capital that has actually been issued to shareholders. It represents the total value of shares that have been allocated to shareholders.
3. Subscription: This is the process by which investors agree to purchase shares in the company. In this scenario, 80 million shares were offered for subscription.

Given Information:

• Authorized Share Capital: N50 million
• Total Shares: 100 million shares
• Shares Offered for Subscription: 80 million shares
• Price per Share: 60k (or N0.60)
• Subscription Status: Fully subscribed and issued

Step-by-Step Calculation:

1. Calculate the Total Value of Issued Shares:
2. Since 80 million shares were offered for subscription and they were fully subscribed, we need to calculate the total value of these shares.
3. Total Value of Issued Shares = Number of Shares Issued × Price per Share
4. Total Value of Issued Shares = 80,000,000 shares × N0.60 = N48,000,000
5. Determine the Issued Capital:
6. The issued capital is equal to the total value of the shares that have been issued to shareholders.
7. Therefore, the issued capital is N48 million.

Conclusion: The issued capital of the company is N48 million, which corresponds to option B. Explanation of Other Options:

• Option A (N40 million): This is incorrect because it does not reflect the total value of the shares that were issued. The calculation shows that the issued capital is N48 million, not N40 million.
• Option C (N50 million): This option represents the authorized share capital, not the issued capital. The issued capital is only the amount that has been subscribed and issued, which is N48 million.
• Option D (N80 million): This option is incorrect as it suggests that the company has issued shares worth N80 million. However, only 80 million shares were offered at N0.60 each, leading to an issued capital of N48 million.

Common Pitfalls:

• Confusing authorized share capital with issued capital. Remember, authorized capital is the maximum limit, while issued capital is what has actually been sold to shareholders.
• Miscalculating the total value of shares by not multiplying the number of shares by the price per share correctly.

Revision Summary:

• Authorized share capital is the maximum amount a company can issue; in this case, it is N50 million.
• Issued capital is the actual value of shares issued to shareholders; here, it is N48 million.
• The calculation for issued capital is based on the number of shares issued multiplied by the price per share.
• Always differentiate between authorized and issued capital to avoid confusion in calculations.