To determine the issued capital of the limited liability company based on the information provided, let's break down the components step-by-step. Step 1: Understanding Authorized Share Capital

• 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.

Step 2: Understanding Issued Share Capital

• Issued Share 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 sold to investors.

Step 3: Analyzing the Information Given

• The company has an authorized share capital of N50 million, which is divided into 100 million shares.
• Out of these, 80 million shares were offered for subscription at a price of 60k (N0.60) per share.
• The problem states that these shares have been fully subscribed and issued.

Step 4: Calculating the Issued Capital To find the issued capital, we need to calculate the total value of the shares that have been issued:

1. Number of Shares Issued: 80 million shares
2. Price per Share: N0.60 (60k)

Now, we can calculate the issued capital using the formula: [ \text{Issued Capital} = \text{Number of Shares Issued} \times \text{Price per Share} ] Substituting the values: [ \text{Issued Capital} = 80,000,000 \text{ shares} \times 0.60 \text{ Naira/share} = 48,000,000 \text{ Naira} ] Conclusion The issued capital of the company is N48 million. Answer The correct option is B. N48. Explanation of Other Options

• A. N40: This option is incorrect because it does not reflect the total value of the shares issued. It seems to be a miscalculation or misunderstanding of the share price and number of shares.
• C. N50: This option represents the total authorized share capital, not the issued capital. The issued capital is only the amount that has been sold to shareholders, which is less than the authorized amount.
• D. N80: This option is incorrect as it suggests that the company has issued more shares than it has available for subscription. The company only issued 80 million shares, not 80 million Naira worth.

Common Pitfalls

• Confusing authorized share capital with issued share capital.
• Miscalculating the total issued capital by not multiplying the number of shares by the price per share.
• Not recognizing that the shares offered for subscription may not equal the total authorized shares.

Revision Summary

• Authorized share capital is the maximum amount a company can issue; issued capital is what has actually been sold.
• Issued capital is calculated by multiplying the number of shares issued by the price per share.
• In this case, 80 million shares at N0.60 each results in an issued capital of N48 million.
• Always differentiate between authorized and issued capital to avoid confusion in calculations.