Question 1
AKONFEM Ltd. is issuing 10,000 shares on the following
terms:
On Application Allotment
First Call
GHC400 GHC300 GHC200 GHC100
Final Call
Applications have been received for 18,000 shares, which they
decided to deal with them as follows:
On 5th March 2014 they decided to reject applications for
3,000 shares and the monies so received are refunded
Applications for 6,000 shares were accepted in full and
Applications for 9,000 shares were accepted pro-rata. Any
excess application monies so received were transferred to allotment
and call accounts. Any excess application money still remaining is
to be repaid.
The allotment monies were due on March 30th 2014. The first
call was made on 5th May 2014. The final call was made on 1st June
2014, and on that date an applicant to whom 500 shares have been
allotted defaulted. The shares were subsequently forfeited and
re-issued to Opele at GHC 600 each payable on application.
Prepare the necessary ledger accounts and show the extract of
the Statement of Financial Position.
Question 2
ONE LUV CO. LTD. was incorporated with 20,000 authorized
ordinary shares of no par value; 10,000 of which were issued and
fully paid for as at 1st January. The stated capital of the company
at that date was GHC 17,250,000
The company subsequently invited application for 7,500
ordinary shares at GHC 3,000 per share, payable as follows;
On Application Allotment
Calls
August 1st 2014
August 31st 2014 October 11th
GHC 2,000 per share GHC 500 per share GHC 500 per share
2014
Applications were received for 9,000 shares and on August 8th
it was decided to deal with
them as follows:
a. To reject applications of 500 shares and monies relating to
these shares immediately
refunded
b. To give full allotment to applicants of 1,000 shares
c. To allot the remainder on pro-rata and
d. To utilize excess application monies in part payment of
amounts due on allotment
An applicant to whom 100 shares had been allotted failed to
pay the calls monies and these shares were forfeited on October
31st 2014. Half of these shares were re-issued and fully paid at
GHC 2,100 per share.
a. Show the necessary ledger accounts
b. Show the extract of the Statement of Financial
Position