Question
Early July 2016, ABC Limited announced to issue 120000 shares at $8 each: $4.8 payable upon application; $2.4 on allotment of shares; and the rest
Early July 2016, ABC Limited announced to issue 120000 shares at $8 each: $4.8 payable upon application; $2.4 on allotment of shares; and the rest to be reserved for a call sometime in the future.
By the end of July, the company has received applications for 160000 shares.
The board of directors met on 1 August to decide on the allotment of shares. They decided to allot shares proportional to the number of shares each application applied for. All remaining allotment money was to be received by the end of month.
On the 15 May 2017, the company made a call for the rest of the money, payable in the next 14 days.
Call money for all but shareholders with 6000 shares failed to pay, leading to the forfeiture of their shares.
According to the company constitutions, shareholders with their shares forfeited were entitled to a full refund. The company paid this amount the next day after the forfeiture of shares.
Required:
Journalise the above transactions. Clearly show the dates. Narrations are not required.
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