Prepare the following ledger accounts to record the transaction in the books of Rose Bhd:(i) Application(ii) Allotment.(iii) First and final call.(iv) Forfeited shares.(v) Reissued shares.(vi) Ordinary share capital. During the year ended 31 July 2020, Rose Bhd has issued 400,000 units of ordinaryshares of no par value at RM3.00 each. Rose Bhd received an application of 500,000units and decided to accept in full application of 200,000 units of shares and rejectand refund the application of 50,000 units of shares. The balance of application wasallotted on a basis of 4 shares for every 5 shares applied for. The excess moneyreceived for the application were set off against the allotment money owed by thesubscribers.The subscribers were allowed to pay in instalment based on the following scheduleof payment:Per ShareApplicationRM1.40AllotmentRM1.00First call and final callTotalRM0.60RM3.00All the instalments were paid successfully by the subscribers except for oneshareholder who was allotted with 10,000 units of shares who failed to pay theamount due on the first and final call. His shares were declared forfeited and reissuedto Hibiscus Bhd at RM1.50 per share fully paid.

The ledger accounts are prepared as transactions posted from journal.

Prepare the following ledger accounts to record the transaction in the books of Rose Bhd: (i) Application (ii) Allotment. (iii) First and final call. (iv) Forfeited shares. (v) Reissued shares. (vi) Ordinary share capital.

Prepare the following ledger accounts to record the transaction in the books of Rose Bhd: (i) Application (ii) Allotment. (iii) First and final call. (iv) Forfeited shares. (v) Reissued shares. (vi) Ordinary share capital.

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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Question

Prepare the following ledger accounts to record the transaction in the books of Rose Bhd:

(i) Application

(ii) Allotment.

(iii) First and final call.

(iv) Forfeited shares.

(v) Reissued shares.

(vi) Ordinary share capital.

During the year ended 31 July 2020, Rose Bhd has issued 400,000 units of ordinary
shares of no par value at RM3.00 each. Rose Bhd received an application of 500,000
units and decided to accept in full application of 200,000 units of shares and reject
and refund the application of 50,000 units of shares. The balance of application was
allotted on a basis of 4 shares for every 5 shares applied for. The excess money
received for the application were set off against the allotment money owed by the
subscribers.
The subscribers were allowed to pay in instalment based on the following schedule
of payment:
Per Share
Application
RM1.40
Allotment
RM1.00
First call and final call
Total
RM0.60
RM3.00
All the instalments were paid successfully by the subscribers except for one
shareholder who was allotted with 10,000 units of shares who failed to pay the
amount due on the first and final call. His shares were declared forfeited and reissued
to Hibiscus Bhd at RM1.50 per share fully paid.

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