The Ohio Chemical Works Ltd. Issued for public subscription 1,00,000, Equity Shares of 100 each at a premium of $ 20 per share, payable as under : On application, $ 20 per share ; On allotment, $ 50 per share (including premium); On first call $ 20 per share ; and on final call, $ 30 per share. Applications were received for 1,50,000 shares. The shares were allotted pro rata to the applicants for 1,20,000 shares, the remaining applications being rejected. Money over-paid on application was utilised towards sums due on allotment. Dave to whom 4,000 shares were allotted, failed to pay allotment and call money and Mak, to whom 5,000 shares were allotted failed to pay the two calls. These were subsequently forfeited after the second call was made. Prepare the Balance Sheet, after the transactions are complete.

The Ohio Chemical Works Ltd. Issued for public subscription 1,00,000, Equity Shares of 100 each at a premium of $ 20 per share, payable as under : On application, $ 20 per share ; On allotment, $ 50 per share (including premium); On first call $ 20 per share ; and on final call, $ 30 per share. Applications were received for 1,50,000 shares. The shares were allotted pro rata to the applicants for 1,20,000 shares, the remaining applications being rejected. Money over-paid on application was utilised towards sums due on allotment. Dave to whom 4,000 shares were allotted, failed to pay allotment and call money and Mak, to whom 5,000 shares were allotted failed to pay the two calls. These were subsequently forfeited after the second call was made. Prepare the Balance Sheet, after the transactions are complete.

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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