4.5 M Limited has an authorised share capital of £1,500,000 divided into 1,500,000 ordinaryshares of £1 each. The issued share capital at 31 March 20X7 was f500,000 which was fully paid,and had been issued at par. On 1 April 20X7, the directors, in accordance with the company'sArticles, decided to increase the share capital of the company by offering a further 500,000ordinary shares of £1 each at a price of £1.60 per share, payable as follows:On application, including the premiumOn allotmentOn first and final call on 3 August 20x7£0.85 per share£0.25 per share£0.50 per shareOn 13 April 20X7, applications had been received for 750,000 shares and it was decided to allot theshares to applicants for 625,000 shares, on the basis of four shares for every five shares for whichapplications had been received. The balance of the money received on application was to beapplied to the amounts due on allotment. The shares were allotted on 1 May 20X7, the unsuccess-ful applicants being repaid their cash on this date. The balance of the allotment money wasreceived in full by 15 May 20X7.With the exception of one member who failed to pay the call on the 5,000 shares allotted tohim, the remainder of the call was paid in full within two weeks of the call being made.The directors resolved to forfeit these shares on 1 September 20X7, after giving the requirednotice. The forfeited shares were reissued on 30 September 20X7 to another member at £0.90 pershare.You are required to write up the ledger accounts necessary to record these transactions in thebooks of M Limited.(Chartered Institute of Management Accountants)4.6A Applications were invited by the directors of Grobigg Ltd for 150,000 of its £1 ordinaryshares at f1.15 per share payable as follows:Per shareOn application on 1 April 20X8On allotment on 30 April 20x8 (including the premium of £0.15 per share)On first and final call on 31 May 20X8£0.75£0.20£0.20Applications were received for 180,000 shares and it was decided to deal with these as follows:1 To refuse allotment to applicants for 8,000 shares.2 To give full allotment to applicants for 22,000 shares.3 To allot the remainder of the available shares pro rata among the other applicants.4 To utilise the surplus received on applications in part payment of amounts due on allotment.An applicant, to whom 400 shares had been allotted, failed to pay the amount due on the firstand final call and his shares were declared forfeit on 31 July 20x8. These shares were reissued on3 September 20X8 as fully paid at £0.90 per share.

Comment: The Question is Multiple type, so SME will answer only one question as per Bartleby…

Answered: You are required to write up the ledger…

Business

Accounting

You are required to write up the ledger accounts necessary to record these transactions in the books of M Limited.

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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