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Prepare the following ledger accounts to record the transaction in the books of Rose Bhd: (i) Application (ii) Allotment. (iii) First and final call. (iv) Forfeited shares. (v) Reissued shares. (vi) Ordinary share capital.

Prepare the following ledger accounts to record the transaction in the books of Rose Bhd: (i) Application (ii) Allotment. (iii) First and final call. (iv) Forfeited shares. (v) Reissued shares. (vi) Ordinary share capital.

FINANCIAL ACCOUNTING
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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Prepare the following ledger accounts to record the transaction in the books of Rose Bhd:

(i) Application

(ii) Allotment.

(iii) First and final call.

(iv) Forfeited shares.

(v) Reissued shares.

(vi) Ordinary share capital.

 

During the year ended 31 July 2020, Rose Bhd has issued 400,000 units of ordinary shares of no par value at RM3.00 each. Rose Bhd received an application of 500,000 units and decided to accept in full application of 200,000 units of shares and reject and refund the application of 50,000 units of shares. The balance of application was allotted on a basis of 4 shares for every 5 shares applied for. The excess money received for the application were set off against the allotment money owed by the subscribers. The subscribers were allowed to pay in instalment based on the following schedule of payment: Per Share Application RM1.40 Allotment RM1.00 First call and final call Total RM0.60 RM3.00 All the instalments were paid successfully by the subscribers except for one shareholder who was allotted with 10,000 units of shares who failed to pay the amount due on the first and final call. His shares were declared forfeited and reissued to Hibiscus Bhd at RM1.50 per share fully paid.
Transcribed Image Text:During the year ended 31 July 2020, Rose Bhd has issued 400,000 units of ordinary shares of no par value at RM3.00 each. Rose Bhd received an application of 500,000 units and decided to accept in full application of 200,000 units of shares and reject and refund the application of 50,000 units of shares. The balance of application was allotted on a basis of 4 shares for every 5 shares applied for. The excess money received for the application were set off against the allotment money owed by the subscribers. The subscribers were allowed to pay in instalment based on the following schedule of payment: Per Share Application RM1.40 Allotment RM1.00 First call and final call Total RM0.60 RM3.00 All the instalments were paid successfully by the subscribers except for one shareholder who was allotted with 10,000 units of shares who failed to pay the amount due on the first and final call. His shares were declared forfeited and reissued to Hibiscus Bhd at RM1.50 per share fully paid.
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