Question

Question 9. Prepare the Share Application, Allotment, First and Final Call, Bank and Ordinary Share accounts of a company that issued 300,000 ordinary shares at D6 each, applied for by 450,000 shares, with amounts refunded/allotted/called as shown in the workings.

Accepted Answer

Application = 450,000 x D6 = D2,700,000; Refund = 50,000 x D6 = D300,000; Excess application (used for allotment) = D600,000; Ordinary shares = 300,000 x D6 = D1,800,000; Allotment (D3 x 300,000) = D900,000, offset by excess application D600,000, leaving D300,000 due; First and final call (D1 x 300,000) = D300,000.
Share Application Account, Allotment Account, First and Final Call Account, Bank Account and Ordinary Share Account are prepared and balance to D3,000,000 in total, i.e. 300,000 shares x D10 (application D6 + allotment D3 + call D1) received in full.

NECO Accounting 2024 Theory — Question 17

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