Hawk Moth Limited (HML) was registered with the capital of Rs.5,000,000 divided into ordinary shares of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Hawk Moth Limited (HML) was registered with the capital of Rs.5,000,000 divided into ordinary shares of Rs.10 each. HML offered to public 15,000 shares payable in full on application. Rose Lavillant Bank informs that 20,000 shares applications were received. HML allotted the required shares and refunded the excess. During the year ended 31 December 2019, company completed the following transactions; • Issued 5,000 shares @ Rs. 18 each for cash. • Issued 7,000 shares to the promoters at par. • Purchased computers for Rs.40,000 and issued 3,000 shares against it. • Purchased a piece of land and issued 50,000 shares at Rs.15 each Paid preliminary expenses of Rs.20,000 Fasquired: (i) Pass necessary journal entries for the above transactions in the books of HML. (narrations required) (ii) Prepare statement of share capital of HML after the above transactions. (iii) Let suppose if requisite numbers of shares had not been subscribed by the public, what course of action would be available to HML for raising required finance? Hawk Moth Limited (HML) was registered with the capital of Rs.5,000,000 divided into ordinary shares of Rs.10 each. HML offered to public 15,000 shares payable in full on application. Rose Lavillant Bank informs that 20,000 shares applications were received. HML allotted the required shares and refunded the excess. During the year ended 31 December 2019, company completed the following transactions; • Issued 5,000 shares @ Rs. 18 each for cash. • Issued 7,000 shares to the promoters at par. • Purchased computers for Rs.40,000 and issued 3,000 shares against it. • Purchased a piece of land and issued 50,000 shares at Rs.15 each Paid preliminary expenses of Rs.20,000 Fasquired: (i) Pass necessary journal entries for the above transactions in the books of HML. (narrations required) (ii) Prepare statement of share capital of HML after the above transactions. (iii) Let suppose if requisite numbers of shares had not been subscribed by the public, what course of action would be available to HML for raising required finance?
Expert Answer:
Answer rating: 100% (QA)
Answer Solution Preliminary expenses accountdr 20000 Tobank 20000 Being preliminary expenses paid PI accountdr 20000 To ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
The summarized statements for the year ended 31 December 2007 for Mat, Rug and P entities are as follows: Statements of comprehensive income for the year ended 31 December 2007 The following...
-
On January 1, 2014, Shannon Company completed the following transactions (assume a 10 percent annual interest rate): a. Bought a delivery truck and agreed to pay $60,000 at the end of three years. b....
-
During the year ended 31 December 2018 Pakyi Ltd invested in a convertible bond on its issue date. The bond matures four years after the issue date and at that date the bond can be converted into...
-
An abc-sequence set of voltages feeds a balanced three-phase wye-wye system. The line and load impedances are and , respectively. If the load voltage on the a phase is , determine the voltages at the...
-
Now, suppose Benjamins utility function is given by UB = MB2 in Problem 2. And suppose Abdul signs a contract saying that he will donate 20 to a cause he opposes in the event that he receives less...
-
At the consulting agency, water/wastewater customers fall under two categories: commercial and residential customers. The commercial customers have a demand curve of d1 = 2,750 - 85p1. While...
-
In the following examples, indicate whether you would perform a \(t\)-test of independent means or dependent means. a. Two groups were exposed to different levels of treatment for ankle sprains....
-
Birkenstock is considering an investment in a nylon-knitting machine. The machine requires an initial investment of $25,000, has a 5-year life, and has no residual value at the end of the 5 years....
-
Students will analyze modern trends in law. For this assignment, students shall research the concept of modern trends in the legal practice. This can be a more theoretical analysis such as the...
-
The demand for subassembly S is 100 units in week 7. Each unit of S requires 1 unit of T and 2 units of U. Each unit of T requires 1 unit of V, 2 units of W, and 1 unit of X. Finally each unit of U...
-
Below is unit cost data from Joe Company for the previous month for the production of Baby Yoda dolls. Convert the unit cost to total cost and classify the cost into the relevant categories. Average...
-
What are the most common project management risks?
-
What are some of the examples of pictorial charts?
-
List the steps in the traditional approach to change management with a brief description of each step.
-
Briefly describe the importance of people change management in BPM activities.
-
Name some of the challenges with this traditional approach.
-
The table below contains the list of system calls you will make as well as related header files that contain the declarations. In addition, there are some notes on how the output needs to be...
-
In the circuit shown in Figure 4, a battery supplies a constant voltage of 40 V, the inductance is 2 H, the resistance is 10, and l(0) = 0. (a) Find l(t). (b) Find the current after 0.1s.
-
The following is taken from the Sinjh ASA statement of financial position. Interest is payable annually on January 1. The bonds are callable on any annual interest date. Sinjh uses straight-line...
-
On January 1, 2017, the ledger of Khan plc contains the following liability accounts. Accounts Payable........................52,000 Sales Taxes Payable........................7,700 Unearned Service...
-
On January 1, 2017, Richard Industries Ltd. had retained earnings of 550,000. During the year, Richard had the following selected transactions. 1. Declared cash dividends 96,000. 2. Corrected...
-
Northern Communications Specialists Ltd manufactures and sells satellite phones and communication equipment. The company maintains a cash receipts, cash payments, sales, purchases and general journal...
-
All transactions below relate to Alpha Ltds uncollectable accounts for the financial year ended 30 June 2023. Ignore GST The Accounts Receivable account, prior to the transactions listed above, had a...
-
The accountant for Metro Motorcycles Ltd prepared an aged analysis of accounts receivable balances at 30 June 2023. The percentages of each age group are based on historical analysis and are...
Study smarter with the SolutionInn App