a. On 1st June 2021, Iroko Plc issued 300,000 ordinary shares of D 10 at par payables as follows:
D 6 on Application
D 3 on Allotment
D 1 on the First and Final call
450,000 applicants were received with application monies. The directors decided to:
(i) reject 50,000 applications and return the monies received
(ii) issue the shares to the remaining applicants on the basis of three (3) shares for every four (4) share applied
(iii) credit the excess application monies to allotment
All the calls were made and monies received accordingly.
You are required to prepare the following Ledger Accounts:
Share Application Account
b. On 1st June 2021, Iroko Plc issued 300,000 ordinary shares of D 10 at par payables as follows:
D 6 on Application
D 3 on Allotment
D 1 on the First and Final call
450,000 applicants were received with application monies. The directors decided to:
(i) reject 50,000 applications and return the monies received
(ii) issue the shares to the remaining applicants on the basis of three (3) shares for every four (4) share applied
(iii) credit the excess application monies to allotment
All the calls were made and monies received accordingly.
You are required to prepare the following Ledger Accounts:
Allotment Account
c. On 1st June 2021, Iroko Plc issued 300,000 ordinary shares of D 10 at par payables as follows:
D 6 on Application
D 3 on Allotment
D 1 on the First and Final call
450,000 applicants were received with application monies. The directors decided to:
(i) reject 50,000 applications and return the monies received
(ii) issue the shares to the remaining applicants on the basis of three (3) shares for every four (4) share applied
(iii) credit the excess application monies to allotment
All the calls were made and monies received accordingly.
You are required to prepare the following Ledger Accounts:
First and Final call Account
d. On 1st June 2021, Iroko Plc issued 300,000 ordinary shares of D 10 at par payables as follows:
D 6 on Application
D 3 on Allotment
D 1 on the First and Final call
450,000 applicants were received with application monies. The directors decided to:
(i) reject 50,000 applications and return the monies received
(ii) issue the shares to the remaining applicants on the basis of three (3) shares for every four (4) share applied
(iii) credit the excess application monies to allotment
All the calls were made and monies received accordingly.
You are required to prepare the following Ledger Accounts:
Bank Account
e. On 1st June 2021, Iroko Plc issued 300,000 ordinary shares of D 10 at par payables as follows:
D 6 on Application
D 3 on Allotment
D 1 on the First and Final call
450,000 applicants were received with application monies. The directors decided to:
(i) reject 50,000 applications and return the monies received
(ii) issue the shares to the remaining applicants on the basis of three (3) shares for every four (4) share applied
(iii) credit the excess application monies to allotment
All the calls were made and monies received accordingly.
You are required to prepare the following Ledger Accounts:
Ordinary Share Capital Account
Explanation
a. Working note
Application = 450,000 x D6
= D2,700,000
Refund = 50,000 x D6
= D300,000
Excess Application = 450,000 - 50,000
= 400,000
= 400,000 - 300,000
= 100,000
= 100,000 x D6
= D600,000
Ordinary share =300,000 x D6
= 1,800,000
Allotment = D3 x 300,000
= D900,000
D900,000 - D600,000
= D300,000
Ordinary Allotment = D3 x 300,000
= 900,000
First & Final call = D1 x 300,000
= D300,000
| Dr | SHAREAPPLICATION ACCOOUNT | Cr | |
| D | D | ||
| Ordinary share | 1800000 | Bank | 2700000 |
| Refund | 300000 | ||
| Excess (Allotment) | 600000 | ||
| 2700000 | 2700000 |
b.
Dr ALLOTMENT ACCOUNT Cr
| D | D | ||
| Ordinary share | 900000 | Bank | 300000 |
| Excess (Appication) | 600000 |
c.
FIRST AND FINAL CALL ACCOUNT
| D | D | ||
| Ordinary share | 300000 | Bank | 300000 |
d.
BANK ACCOUNT
| Dr | Cr | ||
| Application | 2700000 | Refund | 300000 |
| Allotment | 300000 | Bal c/d | 3000000 |
| First & Final | 300000 | ||
| 3300000 | 3300000 |
e. ORDINARY SHARE CAPITAL ACCOUNT
| Dr | Cr | ||
| Bal c/d | 3000000 | Application | 1800000 |
| Allotment | 900000 | ||
| First & Final | 300000 | ||
| 3000000 | 3000000 |