Use the Following Information to Answer Questions

Use the following information to answer questions
A company’s capital consists of 50 000 ordinary shares issued at £2 and paid to £1 per share.
On 1 September, a first call of 50c was made on the ordinary shares. By 30 September, the call money received amounted to £22 500. No further payments were received, and on 31 October, the shares on which calls were outstanding were forfeited. On 15 November, the forfeited shares were reissued as paid to £1.50 for a payment of £1 per share. The appropriate cash amount from the reissue was received on 19 November. Costs of reissue amounted to £2 000. The company’s constitution provided for any surplus on resale, after satisfaction of unpaid calls, accrued interest and costs, to be returned to the shareholders whose shares were forfeited.

-The amount of the surplus payable to the shareholders whose shares were forfeited is:

A) £5000;
B) £500;
C) £2500;
D) £3000.

Correct Answer:

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