"Lucky Ltd. invited applications for 50,000 equity shares of Rs. 10 each, payable as Rs 2 on application, Rs. 3 on allotment and the balance on first and final call Applications were received for 1,50,000 shares and the share were allotted on a pro-rata basis, The excess application money was to be adjusted against allotment only. Maya, a holder who had applied for 1,500 shares, failed to pay the call money and her share were forfeited and were reissued a 8 per share as fully paid" Ol. What amount of bank received by the Lucy Ltd. 02: What amount of Share capital will be shown in the balance sheet of Lucky Ltd Q3: What amount will be transfer to capital reserve account

"Lucky Ltd. invited applications for 50,000 equity shares of Rs. 10 each, payable as Rs 2 on application, Rs. 3 on allotment and the balance on first and final call Applications were received for 1,50,000 shares and the share were allotted on a pro-rata basis, The excess application money was to be adjusted against allotment only. Maya, a holder who had applied for 1,500 shares, failed to pay the call money and her share were forfeited and were reissued a 8 per share as fully paid" Ol. What amount of bank received by the Lucy Ltd. 02: What amount of Share capital will be shown in the balance sheet of Lucky Ltd Q3: What amount will be transfer to capital reserve account

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 54P

See similar textbooks

Similar questions

Sun Corporation issues 500 shares of 8 par common stock for a patent. The stock is currently selling for 37 per share on the open market, and no significant impact on the market price is expected by the issuance of the additional shares. Prepare the journal entry to record this transaction.
Prepare general journal entries for the following transactions of GOTE Company: (a) Received subscriptions for 10,000 shares of 2 par common stock for 80,000. (b) Received payment of 30,000 on the stock subscription in transaction (a). (c) Received the balance in full for the stock subscription in transaction (a) and issued the stock. (d) Purchased 1,000 shares of its own 2 par common stock for 7.50 a share. (e) Sold 500 shares of the stock on transaction (d) for 8.50 a share.
Prepare general journal entries for the following transactions, identifying each transaction by letter: (a) Gnu Company issued 5,000 shares of 1 par common stock to the Prendergas law firm as partial payment of fees incurred to incorporate the business. Gnu was short of cash, so Prendergas agreed to accept 10,000 cash and the shares of common stock in full settlement of its bill for 55,000. (b) Gnu issued 50,000 shares of 1 par common stock in exchange for a parcel of land for building a shopping plaza. (The list price for the land was 400,000; a similar parcel in the same area sold last week for 380,000. During the past month, the price at which Gnus common stock has traded on the open market has ranged from 5 to 12 per share. Two trades occurred yesterday at 7 and 10 per share.) (c) Gnu purchased 10,000 shares of 1 par value common treasury stock for 70,000. (This is the only treasury stock that Gnu holds.) (d) Gnu sold 4,000 shares of common treasury stock for 32,000. (e) Gnu sold 5,000 shares of common treasury stock for 30,000.
A company invited applications for 1,00,000 shares of 10 each payable 23 on application, *3 on allotment, *2 on first call and 2 on final call. Applications were received for 1,25,000 shares and all were allotted on pro-rata basis. Anandi holding 6.000 shares failed to pay allotment money and her shares were forfeited immediately and half of these shares were re-issued immediately at 36 paid up. Kusum holding 10,000 shares failed to pay the first call money and her shares were immediately forfeited and 5,000 of these shares were re-issued as fully paid up. Final call will be called on how many shares?
On June 1 Apos Ltd invited application for 50,000 ordinary shares. Ghc200 is payable on application and Ghc300 is payable on allotment. All application monies were received and accepted and the shares duly allotted on June 5.Payments were received on allotment on June 8.Required; Show the ledger entries in the books of Apos?
ABC Ltd, issued a prospectus for inviting application from the public for 10,000 equityshares of " $ 10 each. The amounts were payable as follows: $3 on Application, $2 onAllotment & the balance as and when called.Applications were received for 12,000 shares & the allotment was made as follows:Full applications for 8,000 shares2,000 shares shares to remaining applicants and the excess application money isto be adjusted towards allotment.totally reject applications for 2,000 sharesPass Journal entries in the books of the company assuming that all allotment money wasreceived and the call was not made.
Lacan Products Ltd. invited applications for 500,000 ordinary shares of $1 each at $1.30, payable as 40c on application. 70c (including 30c premium) on allotment, and 20c on first and final call, 4 months after allotment. Applications for all the shares were received and the shares duly allotted. All the allotment money was received but the holder of 1000 shares failed to meet the call and forfeited his shares in accordance with the articles of the company. All the forfeited shares were subsequently reissued as fully paid shares at 80c each. Required: Prepare the following accounts to record the issue of the shares. Application and allotment account Bank account Share Capital and Call accounts Share premium account and investment own shares account
The business becomes a publicly listed company -RMJ KidsRUs Ldwith 1,500 outstanding shares.The company decides to undertake another share issue.RMJ KidsRUs Ltd released a prospectus seeking 3,000 shares valued at $9 each. The prospectus required investors to pay $4 on application, S3 on allotment and $2 on callThe deadline for applications was 24 January. By this date, applications were received for 3,300 shares. In dealing with this over-subscription, the company decided to refund the excess application money back to the unsuccessful applicants.The shares were allotted on 20 February with payment received on 17 March. A call was made on 3 April and the call money was received on23 April.On 1 May, RMJ KidsRUs Ltd announces a cash dividend of $0.90 per share to be distributed on 22 May to shareholders on record at 19 May Journalise all the transactions represented by the events described above, including all relevant dates
MUSCAT SAOG has registered its capital as 5,000,000 divided into 5,000,000 shares of OMR 1 each. The company offered 3,000,000 shares of OMR 1 each to the public for subscription. The Initial Public offer by the company was oversubscribed by 3 times and the company rejected 1/3rd of the applications and the remaining shares were made on a pro-rata allotment of 2: 1 and refunded the excess amount. The company called up OMR 0.700 baisa per share. The company received the entire call amount except on 50,000 shares who did not pay the call amount The number of shares were rejected by the company was: a. OMR 1,000,000 b. OMR 2,000,000 c. OMR 3,000,000 d. OMR 4,000,00
MUSCAT SAOG has registered its capital as 5,000,000 divided into 5,000,000 shares of OMR 1 each. The company offered 3,000,000 shares of OMR 1 each to the public for subscription. The Initial Public offer by the company was oversubscribed by 3 times and the company rejected 1/3rd of the applications and the remaining shares were made on a pro-rata allotment of 2: 1 and refunded the excess amount. The company called up OMR 0.700 baisa per share. The company received the entire call amount except on 50,000 shares who did not pay the call amount What will be the Paid up capital of the Company to be shown in the statement of financial position is a. OMR 2,065,000 b. OMR 4,200,000 c. OMR 2,100,000 d. OMR 2,800,000
MUSCAT SAOG has registered its capital as 5,000,000 divided into 5,000,000 shares of OMR 1 each. The company offered 3,000,000 shares of OMR 1 each to the public for subscription. The Initial Public offer by the company was oversubscribed by 3 times and the company rejected 1/3rd of the applications and the remaining shares were made on a pro-rata allotment of 2: 1 and refunded the excess amount. The company called up OMR 0.700 baisa per share. The company received the entire call amount except on 50,000 shares who did not pay the call amount The amount of calls in arrears was: a. OMR 35,000 b. OMR 15,000 c. OMR 2,065,000 d. OMR 3,000,000
ABC Ltd. issued a prospectus for inviting application from the public for 10,000 equity shares of" $ 10 each. The amounts were payable as follows: $3 on Application, $2 on Allotment & the balance as and when called. Applications were received for 12,000 shares & the allotment was made as follows: Full applications for 8,000 shares 2,000 shares shares to remaining applicants and the excess application money is to be adjusted towards allotment. totally reject applications for 2,000 shares Pass Journal entries in the books of the company assuming that all allotment money was received and the call was not made.