Share capital of a company, Cost Accounting

A company has an authorized share capital of 250 million divided into 1,500,000 ordinary shares of sh.100 each and 1,000,000 preference shares of sh.100 each. 1,000,000 ordinary shares were offered for subscription at sh.150 each payable as follows: on application sh.40, on allotment sh.70 (including premium), on first call sh.30, on final call sh.10.

 Applications were received for 1,500,000 shares. The management rejected application for 100,000 shares for which they returned the money.

The successful applicants were issued with 5 shares for every 7 applied for and the balance of the application money was transferred to allotment.

The first call was made in November and the amounts received except for 50,000 shares.

The amount due to final call was also received except for 100,000 shares.

It was resolved that the shares be forfeited and be re-issued to Mr. Rich for sh. 60.

Required: Journal entries to record the above

Posted Date: 4/1/2013 2:47:38 AM | Location : United States







Related Discussions:- Share capital of a company, Assignment Help, Ask Question on Share capital of a company, Get Answer, Expert's Help, Share capital of a company Discussions

Write discussion on Share capital of a company
Your posts are moderated
Related Questions
XYZ Co. manufactures automation machinery according to customer specifications.  The company is relatively new and has grown each year.  XYZ Co. operated at about 75% of practical

A firm's fixed costs for 0 units of output and its average total cost of producing different output levels are summarized in the table below. Complete the table to find the fixed c

HOW APPLICABLE IS THE MARGINAL COSTING CONCEPT IN ACCOUNTING

Your client has asked you to provide guidance on the following potential accounting changes: (1) Change from straight-line method of depreciation to sum-of-the-years'-digits (2) Ch


When firms enter into loan agreements with their bank it is very common for the agreement to have a restriction on the minimum current ratio the firm has to maintain. So, it is imp

A company is evaluating the following lease or buy option. A four year lease with annual payments of $25,000 payable at the beginning of the year.The tax shield is available at

The state legislature has voted to develop a grant-in-aid policy to try and induce local communities to devote more resources to improving their infrastructure. Town O = Has a

Ordering cost is incurred whenever the inventory is replenished. It includes costs associated with the processing and chasing of the purchase order transportation, inspec

Cost Account Ledger System A cost account ledger system is essential to analyze accounting information in order such costs may be accumulated for individual cost centers and c