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Tutorial Questions
Tutorial Questions
Question 1:
XYZ Limited was registered with an authorized capital of 50 000 ordinary shares of P 5 each. The
company decided to issue 30 000 ordinary shares to the public at par and collect the instalments
as follows: On application P1 per share; on allotment P3 per share and P1 on first and final call.
The company received applications for 35 000 shares and the company decided to return the
excess application money for 5 000 shares. All allotment and first and final call monies were
received in full.
Required to prepare the following ledger accounts:
Question 2:
ABC Ltd was registered with an authorised capital of 50 000 ordinary shares of P10 each. The
company decided to issue 20 000 shares at par. Instalments were collected as follows: on
application P4 per share; on allotment P2 per share and on first call P 2 per share and final call
P2 per share. Applications were received for 35 000 shares. The company decided to return
excess application money on 5 000 shares and then allot the remaining on pro rata basis (2 shares
for every 3 applied). The excess application money on partly allotted applications were retained
for adjustments against allotment money. All allotment, first and final call monies were received
except one shareholder holding 1 000 shares did not pay the final call money.
Question 3:
GHS Ltd was registered with an authorised capital of 70 000 5% preference shares of P 10 each.
The company decided to offer 40 000 shares to the public at a premium of P2 per share.
Instalments were collected as follows: P2 on application; P4 on allotment (including premium);
P6 on first and final call. Applications were received for 50 000 shares and the company decided
to allot shares pro rata (4 shares for every 5 applied). All allotment, first and final call monies
were received except one shareholder holding 500 shares did not pay the first and final call
money.
Question 4:
MIM Ltd was registered with an authorized capital of 80 000 ordinary shares of P5 each. The
company decided to offer 50 000 shares to the public at a premium of P2 per share. Instalments
were collected as follows: On application P2 per share; on allotment P4 per share (including
premium); first and final call P1 per share. Applications were received for 70 000 shares and the
company decided to return application money for 10 000 shares. The remaining were allotted
pro rata. All allotment was received in full. One shareholder holding 1000 shares paid the first
and final call money in advance along with allotment money. Calls were made and one
shareholder holding 500 shares did not pay the first and final call money.
Question 5:
PSG Company Ltd., was registered with an authorised capital of 20 000 Ordinary shares of P10
each. The directors of the company decided to offer to public 10 000 Ordinary shares at a
premium of P5 per share. Instalments were collected as follows: Application money: P2 per share;
Allotment money P 8 per share (including premium); First call P3 per share, Final call P2 per share.
Applications for 15 000 ordinary shares were received and the directors decided to return
application money for 3 000 shares. The balance shares were allotted pro rata. The excess
application money on partly allotted applications were retained for adjustments against
allotment money. All allotment monies and call monies (First call and Final call) were received in
full except one share holder holding 500 shares did not pay both first call and final call monies.
These 500 shares were forfeited and later reissued to Sam at P9 per share.
Required: Prepare the following Ledger Accounts in the books of PSG Limited: