What is the share capital of Bezique?

• A. £150,000
• B. £300,000
• C. £200,000
• D. £250,000

Answer: (C)

Share capital is the total nominal value of the shares a company has issued to its owners. It sits on the balance sheet as the owners’ equity and is found by multiplying the number of issued shares by the par (nominal) value of each share. It’s not necessarily the same as the cash actually paid to the company—that amount can differ if some shares were not fully paid up.

For Bezique, the issued share capital is £200,000, which is why that figure is the correct one. The other amounts would imply different numbers of shares or a different par value, and thus wouldn’t match the recorded share capital.