Jo and Tom subscribed for shares in a new company. The issued share capital of this company

was 100,000 with a nominal value of 1 each. Jo subscribed for 20,000 shares and paid

5,000, the remainder being unpaid. Tom subscribed for 30,000 shares and paid 10,000, the

remainder being unpaid. This capital was spent on purchasing machinery and paying advance

rent for premises. After a period of 12 months the company went into liquidation owing 40,000

to a variety of creditors.

What is the liability of Jo and Tom?