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  3. abc ltd issued 700000 ordinary shares of $1 each a

ABC Ltd issued 700000 ordinary shares of $1 each at a premium of 80 cents....

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Question

Accounting

ABC Ltd issued 700000 ordinary shares of $1 each at a premium of 80 cents. The terms of issue
were that 45 cents on application and $1.10 on allotment including the premium and the balance
was payable on the first and final called. Application was received for 850000 shares. The
directors allotted 700000 shares to successful applicants and returned application money to the
unsuccessful applicants. The money due on the first and final call was received from allottees of
697000 shares; the remaining shares were forfeited and later reissued to another application as
fully paid on payment of $1.20 per share.
Required:
A. Prepare the following ledger accounts:
i. Ordinary Share Capital (3 marks)
ii. Application & Allotment (10 marks)
iii. Share Premium (3 marks)
iv. First and Final call (3 marks)
v. Investments: own shares

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