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The application was closed and 600,000 application were received. Applications for 50,000

shares were unsuccessful and the cash paid in respect of such shares was returned. The balance
of application money was transferred to allotment account to reduce the money due on

allotment.

All shareholders have paid the money on due date except for call money of 15,000 ordinary

shares paid the final call at the same time as final call.

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 2.3

Senyum Selalu Bhd has an authorised share capital of 400,000 5% preference shares of RM2.00
each and 700,000 ordinary shares @RM1.00 each. On 1 January 2020, Board of Directors

decided to offer and issue 350,000 units of ordinary shares @RM1 each at the price of RM1.60
per share according to the following terms:

On application : RM0.40

On allotment : RM0.70
On first call : RM0.20

On final call : RM0.30
On closing day, applications for 500,000 ordinary shares were received. All shares were

allotted except for applications of 100,000 units were refunded. The balance of application
monies were transferred to the allotment account.

All monies duly collected when due except for a shareholder name Mamat with 15,000 shares

paid the final call at the same time as first call, and another shareholder, Aiman with 2,800
shares failed to pay the final call money.

You are required to:

a) Record the journal entries for the above transactions.

b) Illustrate the extract of Statement of Financial Position as at 31 December 2020.

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