(a) Briefly explain TWO (2) methods of payment for the issuance of share. (b) MOLLY Berhad...

 

Transcribed Image Text:

(a) Briefly explain TWO (2) methods of payment for the issuance of share. (b) MOLLY Berhad decided to issue 1,000,000 units of ordinary shares. The terms of payment were as follows: On application On allotment On 1" call On 2nd call RMO.70 1.00 0.60 0.40 Applications were received for 1,250,000 units of ordinary shares and the directors resolved to refund applications for 250,000 units of ordinary shares and give full allotment for 1,000,000 units of ordinary shares. All monies were duly collected when due, except for one shareholder who held 10.000 units of shares who also paid the 2nd call money together with the 1 cal money. Required: Prepare journal entries for the above transactions. Based on Question 1(b), prepare an extracted statement of financial position for MOLLY Berhad. (c) (a) Briefly explain TWO (2) methods of payment for the issuance of share. (b) MOLLY Berhad decided to issue 1,000,000 units of ordinary shares. The terms of payment were as follows: On application On allotment On 1" call On 2nd call RMO.70 1.00 0.60 0.40 Applications were received for 1,250,000 units of ordinary shares and the directors resolved to refund applications for 250,000 units of ordinary shares and give full allotment for 1,000,000 units of ordinary shares. All monies were duly collected when due, except for one shareholder who held 10.000 units of shares who also paid the 2nd call money together with the 1 cal money. Required: Prepare journal entries for the above transactions. Based on Question 1(b), prepare an extracted statement of financial position for MOLLY Berhad. (c)

Answer rating: 100% (QA)

The two methods for payment of shares are Payment by installments in this case payment is made by in... View the full answer