[EXAMPLES] Companies accounts questions (with solutions) issuing shares

Companies account question EXAMPLES

Example 1:

Absolute Ltd Issued 1,000,000 ordinary shares of TAS 1,000, for public subscription on January, 2011. Payments for the share were:

•    On application TAS. 200
•    On allotment TAS. 400
•    On first calls TAS. 300
•    On second call TAS, 100

The exact number of applications was received for the shares and get full allotment The money due from allotment to second call was received in full.

REQUIRED: Show the Journal entries {FIGURES “000” for monetary values}:

           for SOLUTION click here

Example 2:

Blue Crew Co Ltd issued 100,000 ordinary shares of TAS 1,000 at a premium of shs. 200 each payable as follows: -    On application shs. 300

•    An allotment shs 500 (including premium)
•    On first call shs 250
•    On final call shs. 150

Applications were received for 150,000 shares. Out these applications for 50.000 shares were rejected and refunded immediately. The other applicants were allotted shares in full and paid all money due from allotment to final call. 

REQUIRED: Journal entries to record the above.

         

          for SOLUTION click here       

Example 3:

Abrigado co Ltd issued 100,000 ordinary shares for public subscription of TAS 1000 par at discount of 10% payable as follows:

-    An application    shs.    200

-    An allotment    shs    400

-    On first and final call    shs.    300

Application were received for 120,000 shares, out of these, applications for 20.000 shares were rejected and refunded immediately. Money due from allotment and final call was received in full from all allottees. REQUIRED: Show journal entries to record the above

Example 4:

D &D Co Ltd Issued 100,000 ordinary shares of TAS 1,000at a premium of shs. 200 payable as follows

-    On    application shs 400

-    On    allotment shs 500

-    On    first call shs 200

-    On    final call shs 100

Applications were received for 120,000 shares, out of these; applications for 20,000 were rejected and got refunded immediately. The remaining applicants were allotted shares in full. Payments for allotment and first call (when the balance was made) were received in full except for

(a)    All holder of 2,000 shares failed to pay for both allotment and first call

(b)    Bakari holder of 3,000shares failed to pay for first call However, Chale. a holder of

5,000shares paid his first call money plus final call The Balance sheet of D&D Co Ltd Was made up before the final call was made

REQUIRED:

(i) Journal entries to record the above

(II) The statement of Financial Position of D &D Co Ltd

Example 6:

A&B Ltd invited applications for 1,000 ordinary shares of shs. 100 each payable as follows

-    On application                           shs.    30

-       On allotment                              shs.    40

-    On first call May    1                  shs.    30

-       On final call 1^st October           shs.    20

Applications were received for 1,500 ordinary shares: Directors resolved to

(i).   Reject applications for 300 shares and refund application money thereon and

(ii). Allot shares to remaining applicants on a pro rata basis retaining excess application money against amounts due on allotment By 31^s’ December the payment position in respect of these shares were as follows 30 shares we^re in arrears for allotment money, 40 were in arrears for the first call and 45 shares were in arrears for the final call.

REQUIRED: Prepare the ledger accounts for the above transaction.