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Practice Question
Imo State University Nigeria
DPC PLC has an authorised share capital of 600,000 ordinary shares value at 50 kobo each and
300,000 9% preference shares valued at N1 each. The company issued 500,000 ordinary shares and
300,000 preference shares to the public on the following terms:
Ordinary shares: 15 kobo per share payable on application, on allotment 25 kobo per share including
the premium. On 1
st
call 20 kobo per share, the first and final call was due on 1
st
October, 2012.
The preference share is issued payable on the following terms: On application 50 kobo per share, on
allotment of 20 kobo per share, on first call 25 kobo per share and on second and final call10 kobo
per share. There is a premium included in the application fee.
Application were received for 600,000 ordinary shares and 250,000 preference shares on 20
th
July,
2012. The shares were allotted on 20
th
August 2012, on which date, excess application on the
ordinary shares were returned to the unsuccessful applicants.
All instalments were received on due dates except those on 10,000 ordinary shares, whose holder
failed to pay for the first and final call.
You are required to:
Prepare the ledger accounts recording the above transactions in the books of DPC PLC. Extract a
Balance Sheet as at 30/10/2012 on the assumption that no other transactions took place until that
date.
(Accounting)
Solution
Workings on DPC PLC
Working 1
N. K
Face value .50
Application money per shares . 15k
Allotment . 25k
First call . 20k
60
Premium 10k
Working 2
Preference share
N. K

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Face value 1.00
Application on shares .50k
Allotment shares .20k
First call .25k
Second & final call 10k
.95
Premium .05
Bank Account
Dr Cr
Date
Particular
N
Particular
N
Application
Returned
20july
2012
For ord.
share
600,000
shares 15k
90,000
Ord shares
100,000shares
at 15k
15,000
For
preference
shares
250,000
shares
125,000
20 Aug
2012
Allotment
For ord.
shares
500,000
shares at
25k
125,000
For Pref.
shares
250,000 at
20k
50,000
First call
For ord.
shares
500,000
shares at
20k
N100,000
less
10,000 at
20k =
N2000
98,000
For Pref.
shares

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Practice Question Imo State University Nigeria DPC PLC has an authorised share capital of 600,000 ordinary shares value at 50 kobo each and 300,000 9% preference shares valued at N1 each. The company issued 500,000 ordinary shares and 300,000 preference shares to the public on the following terms: Ordinary shares: 15 kobo per share payable on application, on allotment 25 kobo per share including the premium. On 1st call 20 kobo per share, the first and final call was due on 1st October, 2012. The preference share is issued payable on the following terms: On application 50 kobo per share, on allotment of 20 kobo per share, on first call 25 kobo per share and on second and final call10 kobo per share. There is a premium included in the application fee. Application were received for 600,000 ordinary shares and 250,000 preference shares on 20th July, 2012. The shares were allotted on 20th August 2012, on which date, excess application on the ordinary shares were returned to the unsuccessful applicants. All instalments were received on due dates except those on 10,000 ordinary shares, whose holder failed to pay for the first and final call. You are required to: Prepare the ledger accounts recording the above transactions in the books of DPC PLC. Extract a Balance Sheet as at 30/10/2012 on the assumption that no other transactions took place until that date. (Accounting) Solution Workings on DPC PLC Working 1 N. K Face value .50 Application money per shares . 15k Allotment . ...
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