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
Describe briefly the possible causes of: (i)   the material usage variance, (ii)  the labour rate variance, (iii)  the sales volume profit variance.

on june 2005 20 units of the product in stock the following is extracted from the companys books direct material-200 per unit,direct labour 150 per unit, variable production overhe


#ques Case Study Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for

question and answer: XYZ trading purchased 6,850 killos of material at a total cost of 21,920.00. The material price variance was 1,370.00 favorable. The standard price per killo w

Example of Over and under absorption of production overhead costs By employing data from diagram assume such the production overhead absorption rate was computed where an acti

Calculate Cost or Equivalent Units The given work in progress account concerns to the blending department of a company, a soft-drinks company for the month of January in 1999

. Alice Company has received a special order from John. John wishes to buy 100 units of Alice's product at a price of $48. The regular price is $65. The unit cost informati