Success Berhad, with a registered capital of 50,000,000 ordinary shares of RM1 each, is open for applications for its first issue of 30,000,000 ordinary shares of RM1 each at RM1.20 on the following terms: On application On allotment 20 sen 40 sen (including premium) 30 sen On 1st call On 2nd and final call 30 sen The application was received for 40,000,000 ordinary shares. The directors rejected applications for 5,000,000 shares and allotted the shares on a pro-rata basis among the remaining applicants. Any surplus money on the application was used to pay upon allotment. All monies due on the allotment and calls on the ordinary shares were duly received, Required: Prepare journal entries to record the above transactions.

Success Berhad, with a registered capital of 50,000,000 ordinary shares of RM1 each, is open for applications for its first issue of 30,000,000 ordinary shares of RM1 each at RM1.20 on the following terms: On application On allotment 20 sen 40 sen (including premium) 30 sen On 1st call On 2nd and final call 30 sen The application was received for 40,000,000 ordinary shares. The directors rejected applications for 5,000,000 shares and allotted the shares on a pro-rata basis among the remaining applicants. Any surplus money on the application was used to pay upon allotment. All monies due on the allotment and calls on the ordinary shares were duly received, Required: Prepare journal entries to record the above transactions.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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