Page 31 - Ebook Financial Accounting 3
P. 31
Required:
Prepare journal entries to record the above transaction and extracts of the statement of
financial position of the company after the (i) First call and (ii) Second and final call.
ANSWER:
Item Dr Cr
(RM,000) (RM,000)
Bank 40,000
Application 40,000
(Amount received on application) (50m x
80cent)
Application 32,000
Ordinary Share Capital 32,000
(Application money transferred to share capital)
(40m x 80cent)
Bank 8,000
Application 8,000
Allotment 16,000
(Amount received on allotment)
Calculation:
Money accepted during application (50 million
shares x 80 cent)
Money for application (40 million shares x 80
cent) 40,000
** Surplus application money transfer to 32,000
allotment 8,000
Therefore:
Money due on allotment (40 million x 40 cent) 16,000
**Money from application 8,000
Money should be paid on allotment 8,000
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