Lacan Products Ltd. invited applications for 500,000 ordinary shares of $1 each at $1.30, payable as 40c on application. 70c (including 30c premium) on allotment, and 20c on first and final call, 4 months after allotment. Applications for all the shares were received and the shares duly allotted. All the allotment money was received but the holder of 1000 shares failed to meet the call and forfeited his shares in accordance with the articles of the company. All the forfeited shares were subsequently reissued as fully paid shares at 80c each. Required: Prepare the following accounts to record the issue of the shares. Application and allotment account Bank account Share Capital and Call accounts Share premium account and investment own shares account
Lacan Products Ltd. invited applications for 500,000 ordinary shares of $1 each at $1.30, payable
as 40c on application. 70c (including 30c premium) on allotment, and 20c on first and final call, 4
months after allotment. Applications for all the shares were received and the shares duly allotted.
All the allotment money was received but the holder of 1000 shares failed to meet the call and
forfeited his shares in accordance with the articles of the company.
All the forfeited shares were subsequently reissued as fully paid shares at 80c each.
Required:
Prepare the following accounts to record the issue of the shares.
Application and allotment account
Bank account
Share Capital and Call accounts
Share premium account and investment own shares account
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