Baldacchino Ltd was registered on 1 July 2025; that day the company purchased the net assets (excluding cash) of a partnership for a consideration of 380 000 ordinary shares (fully paid) at a price of \($3.90\) per share; 1 700 000 ordinary shares were offered to the public at \($3.90\) per share on the following terms:

• \($2\) on application (due 15 July)

• \($1\) on allotment (due 15 August)

• balance on final call (due 15 November).

By 15 July, applications had been received for 2 100 000 ordinary shares of which applicants for 900 000 shares forwarded the full \($3.90\) per share.

At a directors’ meeting on 16 July, it was decided:

1. to allot ordinary shares in full to applicants who had paid in full on application 2. to allot the remaining ordinary shares from this issue in proportion of 2 for every 3 applied for.

According to the prospectus, all surplus money from applications was to be transferred to allotment and/or call accounts. The share issue costs of \($95\) 000 and were paid on 15 August.

By 30 November, all money was received except for the holder of 4000 shares who did not pay the final call.

Required

(a) Prepare ledger accounts (running balance format) to record all the transactions.

(b) Prepare a balance sheet of Baldacchino Ltd as at 31 May 2025.