Page 41 - Ebook Financial Accounting 3
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EXERCISE
QUESTION 2.1
After having fulfilled the listing requirement, Lautan Luas Berhad offered to the public 500,000
ordinary shares at a price of RM1.30 each and payable as follows:
On application RM0.40
On allotment RM0.40
On first call RM0.40
On final call RM0.10
On the closing date, applications were received for 650,000 shares and the directors decided to
refund 100,000 unit of applications. The balance of application monies was transferred to the
allotment account and allotting the shares on a pro-rata basis.
All shareholders have paid the money on due date except for one shareholder of 35,000
ordinary shares who paid the final call money at the same time as first call money.
i. You are required to record journal entries for the related transaction.
ii. By using the situation in question (i), illustrate the Statement of Financial Position
(extract) after the final call.
Question 2.2
Selalu Untung Berhad has authorized share capital of 700,000 Ordinary Shares at RM2 each.
Board of directors decided to offer and issue to the public 450,000 ordinary shares at a price of
RM2 each and payable as follows:
On application RM0.80
On allotment RM0.70
On first call RM0.30
On final call RM0.20
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