Question
During the year to 30 September 2032, Mu plc issued 100,000 3 ordinary shares. The terms of the offer were as follows: Date Payment Amount
During the year to 30 September 2032, Mu plc issued 100,000 £3 ordinary shares. The terms of the offer were as follows:
Date | Payment | Amount (£) |
31 March | on application (including the premium) | 0.60 |
30 April | on allotment | 1.20 |
30 June | first and final call | 0.40 |
Applications were received for 200,000 shares. The directors decided to allot the shares on the basis of 1 for every 2 shares applied for and apply the excess application money received against the amount due on allotment.
All amounts due on application and allotment were received on the due dates, with the exception of one shareholder who had been allotted 20,000 shares and defaulted on the first and final call. These shares were forfeited on 31 July 2032, and reissued on 31 August 2032 at a price of £3.30 per share.
Required: Write up the above details in the books of account of Mu plc using the following ledger accounts: (i) application and allotment; (ii) first and final call; and (iii) investment – own shares.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started