What would be the total amount received on the second call?

Use the information below to answer the question.

A company’s authorized share capital was one million ordinary shares at N1 each. Issued 80% of its shares at N1.10 per share. 70k was payable on application, 25k on the allotment, 10k due on the first call and the balance on the second call.

A. N240 000
B. N280 000
C. N40 000
D. N56 000

Correct Answer:

Option C – N40 000