Yaa Papabi Ltd has an authorized capital of 7,800,000 ordinary shares of no-par value, of which 6,000,000 have been issued and fully paid. In order to finance an expansion program, Yaa Papabi Ltd issued the remainder of its share capital at a price of GHS 4 per share payable as follows: GHS On application 0.50 On allotment 2.50 On First call 0.60 On final Call 0.40 Applications were received for 2,700,000 shares. Of these, 600,000 were rejected and the monies refunded to the applicants. The remainder were allotted pro rata on a 6 for 7 basis and the surplus application money was carried forward to allotment account. The calls were duly made and the sums received except that a holder of 12,000 shares could not pay both calls. After the formalities have been concluded, these shares were declared forfeited but were subsequently reissued to another applicant at GHS 1.5 per share. Required: a) Show relevant LEDGER and JOURNAL entry to record the above transactions b) Show the balance sheet extract.
Yaa Papabi Ltd has an authorized capital of 7,800,000 ordinary shares of no-par value, of
which 6,000,000 have been issued and fully paid. In order to finance an expansion program,
Yaa Papabi Ltd issued the remainder of its share capital at a price of GHS 4 per share
payable as follows:
GHS
On application 0.50
On allotment 2.50
On First call 0.60
On final Call 0.40
Applications were received for 2,700,000 shares. Of these, 600,000 were rejected and the
monies refunded to the applicants. The remainder were allotted pro rata on a 6 for 7 basis
and the surplus application money was carried forward to allotment account. The calls were
duly made and the sums received except that a holder of 12,000 shares could not pay both
calls. After the formalities have been concluded, these shares were declared forfeited but
were subsequently reissued to another applicant at GHS 1.5 per share.
Required:
a) Show relevant LEDGER and
b) Show the balance sheet extract.
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