Hi all, I am going through the revision book questions and I am unsure as to how the answer to this question is 23p. Any help would be appreciated. Jamie
Hi Jamie, The shares have a par value of 25p and they've been issued at a premium of 20p, ie they've been sold at 45p per share. If the shareholders have only paid 22p per share then there's 45p - 22p = 23p per share outstanding. The shares have been issued partly-paid. The liability of a company’s shareholders is limited to the fully-paid value of the share, so if the company can't pay its liabilities, the shareholders could be asked to pay the outstanding 23p per share. I hope that helps! Thanks Lucy
