The maximum amount a company can raise through the issue of shares is
Paid-up capital
Authorized capital
Reserve capital
Loan capital
Correct answer is B
Authorized capital is also known as Nominal or Registered capital. It is the capital set out in the capital clause of the company's memorandum of association.
#15,000
#25,000
#10,000
#75,000
Correct answer is A
Teteh's share of interest on capital = 5% x 300,000 = 15,000
#50,000
#70,000
#90,000
#60,000
Correct answer is B
Kukuma's current capital = 10,000 ( interest on capital) + 60,000( share of of profit i.e 2/5 x 125,000)
= 70,000
Use the following information to answer questions below
#60,000
#90,000
#75,000
#50,000
Correct answer is C
Ratio in their capital = 300,000/200,000 = 3/2 = 3: 2
Total ratio = 3+ 2 = 5
Interest on capital = 5%
Teteh = 5% x 300,000 = 15,000
Kukuma = 5% x 200,000 = 10,000
= 150,000 - ( 15,000 + 10,000)
= 150,000 - 25,000
= 125,000
Teteh's share of profit = 3/5 x 125,000
= 75,000
The document prepared by the buyer and sent to the seller listing the items to be supplied is
Purchase order
Credit note
Proforma invoice
Sales order
Correct answer is A
The purchase order is a document generated by the buyer and serves the purpose of ordering goods from the supplier. The document indicates the details on the items that are to be purchased, such as the types of goods, quantity and price.