During the year to 30 September 20X9, Popham plc issued 100,000 1 ordinary shares. The terms of the offer were
During the year to 30 September 20X9, Popham plc issued 100,000 £1 ordinary shares. The terms of the offer were as follows:
Applications were received for 200,000 shares. The directors decided to allot the shares on the basis of 1 for every 2 shares applied for and apply the excess application money received against the amount due on allotment.
All amounts due on application and allotment were received on the due dates, with the exception of one shareholder who had been allotted 10,000 shares, and who defaulted on the first and final call. These shares were forfeited on 31 July 20X9, and reissued on 31 August 20X9 at a price of £1.10 per share.
Write up the above details in the books of account of Popham plc using the following ledger accounts:
(i) Application and allotment
(ii) First and final call
(iii) Investment – own shares.
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