BKAF1023: Tutorial 7- TOPIC 9- ACCOUNTING FOR COMPANIES DUE DATE: 16 May, 2019 QUESTION 1 Better Enterprises Ltd was formed with the legal right to issue1 milion shares of S1 each The company has actually issued 800,000 shares. None of the shares has yet been fully paid up. So far, the company has made calls of 80 cents per share. All the calls have been paid by shareholders except for $400 owing from one shareholder. REQUIRED: Calculate a) Authorised or nominal share capital b) Issued share capital c) Called-up share capital d) Calls in arrears e Paid-up share capital QUESTION 2 Explain three (3) reasons why companies may issue preferred shares QUESTION 3 Explain two (2) advantages and two (2) disadvantages of forming a company/corporation