The following transactions were completed by Al-Mustafa Company Limited: i) Offered 100,000 ordinary shares of Rs.10 each of Rs.12 per share to the public payable in full on application. The Company received applications for 120,000 shares. The Company allotted the shares offered and refunded excess amount received. ii) The Company offered to the public 40,000 ordinary shares of Rs.10 each payable in full on application. The entire issue was under-written. The Company received applications for 30,000 shares. These shares were allotted to the public and as per agreement underwriters subscribed the balance of shares. iii) The Company purchased a piece of land and in consideration issued 45,000 ordinary shares of Rs.10 each to the vendors. The value of land was determined to be Rs.500, 000. iv) The Company allotted 10,000 ordinary shares to promoters for service rendered. Q # 7 Mehmood Ltd. was registered with the authorized capital of Rs.2, 000,000 divided into 200,000 shares of Rs.10 each. The Company offered to the public 170,000 shares of subscription at par. The applications for 150,000 shares were received. The underwriters under the agreement subscribed for the remaining 20,000 shares. The Company paid 2% underwriting commission. The Company also completed the following transactions. i) Issued 4,200 shares at par to the promoters in consideration of their services for the promotion of The Company. ii) Purchased equipment for Rs.80, 000 and issued 7,600 shares of Rs.10 each. iii) Purchased office building for Rs.130, 000 and issued 12,000 shares of Rs.10 each as purchase consideration.