Illustration 6 Chandra Limited issued 15000 Preference share of rupees hundred each at a premium of 5%. payment were to be made as - rupees 25 on application, rupees 45 on allotment and rupees 35 on first and final call. the applications for 14000 shares received And all were accepted. all the money was duly received except the first and final call on 200 share. give the necessary journal entry and prepare cash book of the company. also give the opening balance sheet of the company. |
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- Z Ltd allotted one million shares of 50 cents each, as 35 cents called up per share, requiring an immediate payment of 45 cents per share. Accounting entries to record the allotment are______. Select one: a. Dr Share allotment R500 000; Cr Share Capital R400 000 and Cr Share Premium R100 000 b. Dr Share allotment R450 000; Cr Share Capital R350 000 & Cr Share Premium R100 000 c. Dr Share Capital R350 000; Dr Share Premium R100 000 and Cr Cash R450 000 d. Dr Share allotment R350 000; Cr Share Capital R250 000 and Cr Share Premium R100 000MMF Berhad offered for sales to the public 30,000,000 ordinary shares at RM2 per share on the following terms: On application 80 sen On allotment 40 sen On 1st call 40 sen On 2nd and final call 40 sen Applications were received for 40,000,000 ordinary shares and the directors resolved that the shares be allotted on a pro-rata basis of three shares for every four shares applied for. Any surplus application monies were transferred to allotment account to reduce the money due on allotment. All monies were duly collected when due except for a shareholder with 3,000,000 shares who did not pay up on the first call but subsequently paid the amount due and the second call money when the second call was made. Required (a) Prepare journal entries…XYZ SAOG has in issue 5 million, RO 1 equity share. The company decided to make a bonus issue in the ratio of 2 for 5 shares held. Prior to issue of bonus the company had Share premium of OMR 2,500,000. Which of the following journal entry is Correct in respect of issuing bonus shares? a. Debit Share premium OMR 2,000,000 Credit Share Capital OMR 2,000,000 b. Debit Share capital OMR 7,000,000 Credit Share premium OMR 7,000,000 c. Debit Share capital OMR 2,500,000 Credit Share premium OMR 2,500,000 d. Debit Share premium OMR 500,000 Credit Share Capital OMR 500,000
- 20.Corridor Company issued 6,000 share of its P100 par ordinary share to Max Las compensation for 1,000 hours of legal services performed, Max L usually bills P500 per hour for legal services. On this date of issuance, the share was selling at a public trading at P150 per share. By what amount should the share premium account of Corridor Company increase as a result of the issuance of those shares? A. P3,000,000 B. P600,000 C. P300.000 D. P900,000 The Magic Lamp Corporation was incorporated on January 1, 2021, with the following authorized capitalization: 40,000 ordinary shares, no par value, stated value P40 per share 10,000 shares of 5% cumulative preference share, par value P10 per share During 2021, Magic Lamp issued 24,000 ordinary share for a total of P1,200,000 and 6,000 preference share at P16 per share, In addition, on December 31, 2021, subscriptions for 2,000 preference shares were taken at a purchase price of P17. These subscribed share were paid for on January 2. 2022.…17 Point Company issued 25,000 shares of its P50 par ordinary and 40,000 shares of its P25 redeemable preference for a total amount of P3,000,000. The redeemable preference shares has a mandatory redemption date 2 years after their issuance. At the date of issue, the ordinary shares had a market value of P65 per share and the preference shares are selling at P30 per share. What is the amount credited to share premium from ordinary shares? NOTE FOR YOUR FINAL ANSWER: Do not use peso sign Do not use comma Do not use decimal point Round off your final answer to the nearest whole number Example: If your answer is Php 123,456.78, WRITE 1234571. Point Company issued 25,000 shares of its P50 par ordinary and 40,000 shares of its P25 redeemable preference for a total amount of P3,000,000. The redeemable preference shares has a mandatory redemption date 2 years after their issuance. At the date of issue, the ordinary shares had a market value of P65 per share and the preference shares are selling at P30 per share. What is the amount credited to share premium from ordinary shares?
- Sakshi Ltd. Issued a prospectus ,inviting application for 100000 shares of Rs.10 each at a.premium of Rs.5 per share , payable as follows:On application Rs.4.50; on allotment Rs.7.50(including premium); on first call Rs.2 and on final call Re.1.00. Application were received for 125000 shares and allotment was made pro-rated to the pplicantss of 120000 shares, remaining application being refused. Money received in excesson the application was adjusted towards the amount due to allotment. D, to whom 2000 shares were allotted, failed to pay allotment money and on his failure to ayy the first call, is shares were forfeited. M, the holder of 3000 shares, failed to pay the calls, and so is shares were also forfeited. All hesee shares were sold to R, credited as fully paid for Rs.8 per share. Pass necessary journalentries to record the above issue of shares by the company.QUESTION 1 Aalwyn Ltd was incorporated with authorized share capital consisting of 800 000 10% preference shares of $ 2 each and 2 000 000 ordinary shares of N$1.50c each.01 October 2019: The subscribers to the memorandum took and paid for 100 000 ordinary shares at par.During the year, 80% of the remaining ordinary shares and 500 000 preference shares were offered to the public as follows: - The ordinary shares were offered at a premium of 95c per share; and-The preference shares were offered at N$ 5.-01 March 2020: The offer for the subscription of shares opened to the public.-25 March 2020: The offer to the public was closed.-15 April 2020: Allotment of shares offered to public took place and all transactions with the underwriter were also concluded on this date. The issue is being underwritten for a commission of 8%. A total of 400 000 preference shares and 1 700 000 ordinary shares were applied for and the available shares were allotted and the necessary refunds made. The terms of…QUESTION 1 Aalwyn Ltd was incorporated with authorized share capital consisting of 800 000 10% preference shares of $ 2 each and 2 000 000 ordinary shares of N$1.50c each.01 October 2019: The subscribers to the memorandum took and paid for 100 000 ordinary shares at par.During the year, 80% of the remaining ordinary shares and 500 000 preference shares were offered to the public as follows: - The ordinary shares were offered at a premium of 95c per share; and-The preference shares were offered at N$ 5.-01 March 2020: The offer for the subscription of shares opened to the public.-25 March 2020: The offer to the public was closed.-15 April 2020: Allotment of shares offered to public took place and all transactions with the underwriter were also concluded on this date. The issue is being underwritten for a commission of 8%. A total of 400 000 preference shares and 1 700 000 ordinary shares were applied for and the available shares were allotted and the necessary refunds made. The terms of…
- QUESTION 1 Aalwyn Ltd was incorporated with authorized share capital consisting of 800 000 10% preference shares of $ 2 each and 2 000 000 ordinary shares of N$1.50c each.01 October 2019: The subscribers to the memorandum took and paid for 100 000 ordinary shares at par.During the year, 80% of the remaining ordinary shares and 500 000 preference shares were offered to the public as follows: - The ordinary shares were offered at a premium of 95c per share; and-The preference shares were offered at N$ 5.-01 March 2020: The offer for the subscription of shares opened to the public.-25 March 2020: The offer to the public was closed.-15 April 2020: Allotment of shares offered to public took place and all transactions with the underwriter were also concluded on this date. The issue is being underwritten for a commission of 8%. A total of 400 000 preference shares and 1 700 000 ordinary shares were applied for and the available shares were allotted and the necessary refunds made. The terms of…ABC Ltd., has part of its share capital as 10,000 Redeemable Preference Shares of Rs. 100 each. When the shares became due for redemption, the company decided that the whole amount will be redeemed out of a fresh issue of equal amount of equity shares of Rs. 10 each. Show the journal entries in the books of the company.Aalwyn Ltd was incorporated with authorized share capital consisting of 800 000 10% preference shares of $ 2 each and 2 000 000 ordinary shares of N$1.50c each. 01 October 2019: The subscribers to the memorandum took and paid for 100 000 ordinary shares at par. During the year, 80% of the remaining ordinary shares and 500 000 preference shares were offered to the public as follows: The ordinary shares were offered at a premium of 95c per share; and The preference shares were offered at N$ 5. 01 March 2020: The offer for the subscription of shares opened to the public. 25 March 2020: The offer to the public was closed. 15 April 2020: Allotment of shares offered to public took place and all transactions with the underwriter were also concluded on this date. The issue is being underwritten for a commission of 8%. A total of 400 000 preference shares and 1 700 000 ordinary shares were applied for and the available shares were allotted and the necessary refunds made. The terms of…