Page 35 - Ebook Financial Accounting 3
P. 35
Application 20,000
Bank 20,000
(Being refund of unsuccessful application money
50,000 shares x 40 cent)
Allotment 200,000
Ordinary Share Capital 200,000
(Being increase in capital on allotment date 500,000 x
40 cent)
Bank 100,000
Application 100,000
Allotment 200,000
(Being money received on allotment date)
Calculation:
Money accepted during application (50 million shares
x 80 cent)
Money for application (40 million shares x 80 cent) 320,000
Refund to unsuccessful application (200,000)
*Surplus application money transfer to allotment (20,000)
100,000
Therefore: 200,000
Money on allotment (500,000 shares x 40 cent) (100,000)
**Money from application 100,000
Money should be paid on allotment
Bank 2,000
Call in advance 2,000
(Being money received in advance
5,000 shares x 40 cent)
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