Last year the issued share capital of M Bhd was RM 75,000 divided into 60,000 shares of RM 1.25 each, fully paid. On 2 January 2021,40,000 ordinary shares of RM 1.25 each were offered to the public payable as to RM 0.60 on application, RM 0.35 on allotment and RM 0.30 on final call on 6 April 2021. The lists were closed on 10 January 2021, and by that date applications for 65,000 shares had been received. Applications for 5,000 shares received no allotment and the cash paid in respect of such shares was returned. All shares were then allocated to the remaining applicants pro rata to their original applications, the balance of the monies received on applications being applied to the amounts due on allotment. The balances due on allotment were received on 31 January 2021, with the exception of one allottee of 500 shares and these were declared forfeited on 4 April 2021. These shares were reissued to Mr. A as fully paid on 2 May 2021, at RM 1.10 per share. The call due on 6 April 2021 was duly paid by the other shareholders. You are required to record the above-mentioned transactions in the appropriate ledger accounts below: i. Application ii. Allotment Share Capital 111. iv. Forfeited Share V. Final Call vi. Mr. A vii. Bank
Last year the issued share capital of M Bhd was RM 75,000 divided into 60,000 shares of RM 1.25 each, fully paid. On 2 January 2021,40,000 ordinary shares of RM 1.25 each were offered to the public payable as to RM 0.60 on application, RM 0.35 on allotment and RM 0.30 on final call on 6 April 2021. The lists were closed on 10 January 2021, and by that date applications for 65,000 shares had been received. Applications for 5,000 shares received no allotment and the cash paid in respect of such shares was returned. All shares were then allocated to the remaining applicants pro rata to their original applications, the balance of the monies received on applications being applied to the amounts due on allotment. The balances due on allotment were received on 31 January 2021, with the exception of one allottee of 500 shares and these were declared forfeited on 4 April 2021. These shares were reissued to Mr. A as fully paid on 2 May 2021, at RM 1.10 per share. The call due on 6 April 2021 was duly paid by the other shareholders. You are required to record the above-mentioned transactions in the appropriate ledger accounts below: i. Application ii. Allotment Share Capital 111. iv. Forfeited Share V. Final Call vi. Mr. A vii. Bank
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer i, ii ,iii. Thanks
Transcribed Image Text:Last year the issued share capital of M Bhd was RM 75,000 divided into 60,000 shares of
RM 1.25 each, fully paid. On 2 January 2021,40,000 ordinary shares of RM 1.25 each were
offered to the public payable as to RM 0.60 on application, RM 0.35 on allotment and RM
0.30 on final call on 6 April 2021.
The lists were closed on 10 January 2021, and by that date applications for 65,000 shares had
been received. Applications for 5,000 shares received no allotment and the cash paid in
respect of such shares was returned.
All shares were then allocated to the remaining applicants pro rata to their original
applications, the balance of the monies received on applications being applied to the amounts
due on allotment. The balances due on allotment were received on 31 January 2021, with the
exception of one allottee of 500 shares and these were declared forfeited on 4 April 2021.
These shares were reissued to Mr. A as fully paid on 2 May 2021, at RM 1.10 per share. The
call due on 6 April 2021 was duly paid by the other shareholders.
You are required to record the above-mentioned transactions in the appropriate ledger
accounts below:
i.
Application
ii.
Allotment
111.
Share Capital
iv. Forfeited Share
V.
Final Call
vi.
Mr. A
vii. Bank
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education