Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help 1. SMART bank LTD has recently been incorporated in Uganda with an authorised capital of shs 40,000,000 divided into 10,000 ordinary shares. On

please help

image text in transcribed

1. SMART bank LTD has recently been incorporated in Uganda with an authorised capital of shs 40,000,000 divided into 10,000 ordinary shares. On 10 January 2021, the directors of the company approved the issue of 50% of the authorised capital and that this be paid in installments as shown below; On application (7) January 2021) 1,000/= per share On allotment (20 January 2022). 2,000/= per share On 19 Call (24" February 2021). 500/= per share On 2 and Final call (28" February 201) 1,000/= per share The following information relates to the above share issue; 1. The shares were issued at a premium of shs 500 each and this was to be recognised at allotment stage but to be paid on 24" February 2021 together with the payment of 1 call money. 2. On 7th January, 6.200 applications were received and management advised that 1,200 applications be refunded their monies immediately. 3. Allotment and the two calls were successfully made and all monies received on their due dates, Required: 1. Prepare the necessary ledger accounts to reflect all the above transactions (17 marks) 2. Prepares a balance sheet extract after the whole process (4 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services A Systematic Approach

Authors: William Messier, Steven Glover, Douglas Prawitt

9th edition

1308361491, 77862333, 978-1259248290, 9780077862336, 1259162346, 978-1259162343

More Books

Students also viewed these Accounting questions

Question

Analytics in performing the test plan.

Answered: 1 week ago