Archar ltd invited applications from the public for the issue of 55000 equity share of 10 each payable 3 on applications 5 on allotment Balance on call The public applied for 50000 shares which were duly alloted by the company 249000 were received by the company on allotment and 99400 on call The company forfeited those shares on which both allotment and call money was not received 70% of the forfeited shares were reissued at 7 per share fully called up The company had 15000 in its securities premium account You are required to pass journal entries

Archar ltd invited applications from the public for the issue of 55000 equity share of 10 each payable 3 on applications 5 on allotment Balance on call The public applied for 50000 shares which were duly alloted by the company 249000 were received by the company on allotment and 99400 on call The company forfeited those shares on which both allotment and call money was not received 70% of the forfeited shares were reissued at 7 per share fully called up The company had 15000 in its securities premium account You are required to pass journal entries

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q3 Zamani Ltd had 700 000 Authorized Ordinary Shares with a par value of R1.80. 500 000 of these shares were already issued out to the public at par. On 1 January 2010, a decision was made to buy back some of the shares which had been issued out. Discuss the conditions under which Zamani Ltd can be allowed to buy back its shares.
Q8. A Co. invited applications for 20,000 equity shares of 10 each payable as follows: On application 5 On allotment ₹3 On call ₹2 Applications were received for 80,000 shares. It was decided (i) to refuse allotment to the applicants for 25,000 shares. (ii) to allot 50% to Mr. M who had applied for 20,000 shares. (iii) to allot in full to Mr. N who had applied for 5,000 shares. (iv) to allot the balance of the available shares on pro rata basis among the other applicants. Excess application money to be adjusted towards allotment only. Prepare Cash Book and Journal. Prepare a Balance Sheet showing share capital. Prepare Notes to Accounts.
PLease answer only B3, B4, B5
ABC Company issued 1,000,000 equity shares of OMR 1 each. The company called up OMR 0.500baisa and the company received the entire amount except on 50,000 shares on which call money has not been received. The called-up capital of the company is a. OMR 975,000 b. OMR 950,000 c. OMR 475,000 d. OMR 500,000
Y Ltd issued 800 000 ordinary shares of 20 cents each at 25 cents each. At the point of issue all shares were fully called up. However, by the year-end R15 000 due on the share issue was yet to be received. What will be the amount reported as balance in the company’s Share Capital account? R185000 or R145000 or R200 000 or R160 000
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17. 4-6 A. BBB Company authorized to issue 37,500 share capital with par value of P100 B. 40% of the authorized share capital was subscribed at par C. Collected 45% of the of the subscription D. Full collection was received on 10,500 shares originally subscribed E. Cash subscription of 4,500 shares at par F. Building with the fair value of P700,000 was acquired upon issuance of 6,750 shares. The market value of the shares at that time was P110. G. Purchased 3,750 treasury shares at P95. H. Reissued 2,250 treasury shares at P98. I. Net income for the year is P1,350,000 J. Issued 20,250 warrants to shareholders, 1 right for each share, permitting the holders to acquire one shar capital of P100 at P105 with every 10 rights submitted. Share are selling at P99 per share at this time. K. Declared property dividend. The property has the fair value of P200,000 at the date of declaration and P185,000 carrying amount L. Received 500 shares donated by a shareholder. The fair value of shares at…
0.5 On May 1, 2017 Sajid Lu offered 20,000 ordinitzes Rs. 10 at Rs.10 cach to public. On June 25, the banker of company infelnied that apphenion for 18,000 sharcs hage been received with application money. On July 31 , the company issued 18,000 shares to public and as per agreement the underwriter subscribed the balance shares. Required: Regord the above transactiops in general journal. 0.6 On March 18, 2017 Haslim Ltd offered 80,000 ordimary shares of Rs.10 at Rs.10 cach to public. On April 26, the banker of company informed that applicatioh for 3,000 shares have been received with application money. On December 28, the companyssued 73,000 shares to public and as per agreement the underwriter subscribed the balance shares. Required: Record the above transactions in general journal.
PLease answer only B6 and B7
Green Ltd invited applications for 10,000 shares of Rs.100 each at a discount of 6% payable as follows; on application - Rs.25 On allotment - Rs.34 and on first and final call Rs.35. The applications received were for 9,000 shares and all of these were accepted. All money due were received except the first and final call on 100 shares which were forfeited. 50 shares were reissued @ Rs.90 as fully paid. Pass journal entries in the books of Green Ltd.
Jan 1 A prospectus was issued inviting applications for 200, 000 ordinary shares at an issue price of $10, with $6 payable on application, $2 Payable on the allotment and the balance payable on future call as determined by the directors. Jan 31 Applications closed with the ordinary share issue oversubscribed by 50,000. Feb 1 All shares were allotted on a pro- rata basis, and application money was refunded to unsuccessful applicants. Feb 15 Share issue costs of $15000 were paid. All outstanding Allotment money was received. May 25 The final call was made with money received by 10th June. June 10 The call money was received from holders of 180,000 ordinary shares. June 15 The shares on which call money was not received were forfeited. June 25 The forfeited shares were placed with a financial Institution and paid to $10 on a payment of $8.60. The cash was received from the financial institution, and any balance in the forfeited shares account was returned to the former shareholders.…