On 1 January 2016, Shoalhaven Ltd was registered and, on the same day, the company purchased the net assets (excluding cash) of a partnership for a consideration of 240 000 ordinary shares (fully paid) at a price of $2.40 per share. 1 000 000 ordinary shares were offered to the public at

$2.40 per share on the following terms: 

$1 on application (due 15 January)

70c on allotment (due 15 February)

balance on final call (due 15 May).

By 15 January, applications had been received for 1 200 000 ordinary shares of which applicants for 200 000 shares forwarded the full $2.40 per share.

 At a directors’ meeting on 16 January, 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 4 for every 5 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 were $5600 and were paid on 15 February.

By 31 May, all money was received except for the holder of 2000 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 Shoalhaven Ltd as at 31 May 2016.