(5mks) b) XYZ Itd has an authorized share capital of sh. 10,000 on to be divided Into 1,000,000 shares. The par value of led share is expected to sh. 10 to be issued to the market at sh. 12.50. the share payment is expected to be in installments as follows. Shs 3 on applicative Shs 4.50 on installment including the share premium Sh. 2 on 1st call Sh 3 on 2nd call On 2nd July 15,000,000 application were received upon which 300,000 excess applications were rejected and the movies refunded. On 3rd August interest was made and the excess application money was used to settle the inotchment. All monies on auotment was received on 10th August. All call were made after two subsequent weeks, however on holder of 15,000 failed to pay and his shares were forfeited. I End of document