$)$

Instruction: Complete TWO$(2)$ questions from this section.

Question $1$

ABC Ltd issued $700000$ ordinary shares of $$1$ each at a premium of $80$ cents. The terms of issue

were that $45$ cents on application and $$1\mathrm{.}10$ on allotment including the premium and the balance

was payable on the first and final called. Application was received for $850000$ shares. The

directors allotted $700000$ shares to successful applicants and returned application money to the

unsuccessful applicants. The money due on the first and final call was received from allottees of

$697000$ shares; the remaining shares were forfeited and later reissued to another application as

fully paid on payment of $$1\mathrm{.}20$ per share.

Required:

A$.$ Prepare the following ledger accounts:

i$.$ Ordinary Share Capital

ii$.$ Application & Allotment

iii. Share Premium

iv$.$ First and Final call

v$.$ Investments: own shares

$(3$ marks$)$

$(10$ marks$)$

$(3$ marks$)$

$(3$ marks$)$

$(3$ marks$)$

$(8$ marks$)$

$($Total $30$ marks$)$