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P 1 8 - 2 Tabby Limited was incorporated on 1 5 February 2 0 X 6 with an authorised capital of C 1 5
P
Tabby Limited was incorporated on February X with an authorised capital of
C consisting of ordinary shares and nonredeemable
preference shares
In March X the directors issued:
ordinary shares to the incorporators for C each
ordinary shares to the public for each
preference shares for C each
The closing date for all applications was April X
The entire issue was underwritten by Felix Bank Limited for a commission of of the
issue price. The incorporators paid for their shares on April X Applications were
received from the public as follows:
Ordinary shares shares
Preference shares shares
All the required application amounts were received by April X
On April X the directors decided:
To allot the preference shares in accordance with the applications.
In the case of ordinary shares:
To allot all applications in the ratio of two shares for every five shares applied for
To refund all excess application amounts on May X
Settlement with the underwriters took place on May X
The company's accounting policy is to set off share transaction costs against share capital.
Profits for the period ended September X amounted to C Total dividends of
C were declared on September X None of the shareholders were exempt
from the dividends tax.
You are required to:
a Record all the above transactions in the journal of Tabby Limited.
b Prepare the equity section of the statement of financial position of Tabby Limited at
September X
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