Question

Give a brief description from your local newspaper of a recent (2019-2021)example of how this problem has displayed itself in community/town

Answer 1

Answer:

ssue of Shares

A company made an issue of 30,000 shares of 10 each, payable 33 on application,

5 on allotment and 2 on call. A total of 93,200 shares were applied for and owing

to this heavy over-subscription allotments were made as follows:

Applicants for 21,500 in respect of applications for 2,000 or more) received

10,200 shares. Applicants for 50,000 (in respect of application for 1,000 or more

but less than 2,000) received 12,600 shares. Applicants for 21,100 (in respect of

applications for less than 1,000) received 7,200 shares. Cash then received after

satisfying amount due on application was applied towards allotment and call money

and

any balance was returned. All money due on allotment and call were realised.

Give journal entries including that of cash and write up the cash account and ledger

accounts relating to this issue of shares in the books of the company.