Jo and Tom subscribed for shares in a new company. The issued share capital of this company
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Question:
Jo and Tom subscribed for shares in a new company. The issued share capital of this company
was 100,000 with a nominal value of 1 each. Jo subscribed for 20,000 shares and paid
5,000, the remainder being unpaid. Tom subscribed for 30,000 shares and paid 10,000, the
remainder being unpaid. This capital was spent on purchasing machinery and paying advance
rent for premises. After a period of 12 months the company went into liquidation owing 40,000
to a variety of creditors.
What is the liability of Jo and Tom?
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