On 30 September 2016, Jacaranda Ltd issued a prospectus calling for applications
ID: 2474582 • Letter: O
Question
On 30 September 2016, Jacaranda Ltd issued a prospectus calling for applications for 600 000 ordinary shares at an issue price of $3, payable $1.50 on application and $1.50 on allotment. By the closing date of 31 October 2016, the company had received the following application money:
From applicants for 500 000 shares
From applicants for 120 000 shares
$
750 000
360 000
On 15 November, it was decided to allot to applicants who paid more than the application money the number of shares applied for, and to applicants who paid only the application money 480 000 shares. Application money was refunded to 20 000 unsuccessful applicants.
The constitution gives the directors the power to apply excess application money to allotment. All other allotment money was received by 31 December 2016.
Required
Prepare the necessary ledger accounts to record the above transactions.
From applicants for 500 000 shares
From applicants for 120 000 shares
$
750 000
360 000
Explanation / Answer
General Ledger
Cash Trust
31/10/16
Application
1 110 000
15/11/16
Application
30 000
15/11/16
Cash
1 080 000
1 110 000
1 110 000
Application
15/11/16
Share Capital
900 000
31/10/16
Cash – Trust
1 110 000
15/11/16
Allotment
180 000
15/11/16
Cash Trust
30 000
1 110 000
1 110 000
Share Capital
15/11/16
Appl’n & Allot.
1 800 000
Allotment
15/11/16
Share Capital
900 000
15/11/16
Application
180 000
31/12/16
Cash
720 000
900 000
900 000
Cash
15/11/16
Cash Trust
1 080 000
31/12/16
Balance c/d
1 800 000
31/12/16
Allotment
720 000
1 800 000
1 800 000
31/12/16
Balance b/d
1 800 000
31/10/16
Application
1 110 000
15/11/16
Application
30 000
15/11/16
Cash
1 080 000
1 110 000
1 110 000
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