The Details Below Were Extracted from the Accounting Records of Capricorn

question 26

Multiple Choice

The details below were extracted from the accounting records of Capricorn Ltd (a company in the process of liquidation) . $\begin{array}{ll}\text {\( 100000 \$ 1 \) preference shares fully paid }&\$ 100,000\\\text {\( 200000 \$ 1 \) ordinary shares paid to 50 cents }&100,000\\&\$200,000\\\text { Cash available (after payment of all creditors) }&\$20,000\end{array}$
Assume that the constitution of Capricorn Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency.
For ordinary shareholders, the amount of the actual refund or call is:

• A) A call of $220 000.
• B) A call of $100 000.
• C) A refund of $20 000.
• D) A refund of $100 000.

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Definitions:

Unemployment

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Interest Rates

The percentage charged on the total amount of borrowed money, reflecting the cost of debt for the borrower and the return on investment for the lender.

Unintended Inventory Changes

Variations in stock levels that occur when actual sales differ from anticipated sales, not resulting from planned actions by businesses.

Keynesian Models

Economic theories that emphasize the total spending in the economy and its effects on output and inflation, developed by John Maynard Keynes.