Our-Ghana Company Ltd, a merchandise business dealing in foot wares, was incorporated on 1st March 2018 with
Question:
Our-Ghana Company Ltd, a merchandise business dealing in foot wares, was incorporated on 1st March 2018 with an authorized share capital of 100,000,000 ordinary shares of no par value, out of which 20,000,000 shares were issued for GHC160,000,000. On 1st August, 2018 the directors resolved to issue a further 50,000,000 ordinary shares at GH¢15 each. The terms of issue were as follows:
Applications were received for 65,000,000 ordinary shares of which 3,500,000 were rejected.
The rest were allocated on the due dates on pro rata basis. Unsuccessful applicants were repaid on the same day. The calls were duly paid except Techiman, a holder of 750,000 shares, paid her final call with the first call. In addition, Nalerigu failed to pay his 900,000 shares on the final call. His shares were forfeited on 15th December, 2018 and re-issued to Savannah at GHc25 per share on 20th December, 2018
You are required to:
a) prepare the relevant accounts to record the above transactions
b) Draw up the statement of financial position as at 31st December, 2018 on the assumption that 60% of the proceeds from all issues was expended on factory premises and 30% on the acquisition of stocks.
Expert Answer:
