silway co ltd registered on 3rd march 1995 with capital of $1.5 millon, consisting of 1.2 millon $1 ordinary shares and 300,000 $1 preference shares. On 5th march the directors decided to issue 500,000 ordinary shares and 100,000 preference shares on the following terms.
ORIDINARY
.50 cents on application
.25 cents on allotment
.25 cents on call
PREFERENCE
.50 cents on application
.50 cents on allotment
Applications were received by 31st march on 590,000 ordinary shares, 3000 of which were paid in full, and 100,000 preference shares. on 1st april the directors decided to allot the shares in the following manner:
ORDINARY:
Allot the fully paid shares, the full number applied for.
Refund applications to 10,000 applicants
apply excess application to allotment
PREFERNCE:
Allot the shares applied for.
All allotment money due was received by 30th april. On 1st june the directors made the call on the oridinary shares. On 30th june all call money had been received except for 500 shares.
A) Journalise these transactions
B) Prepare the shareholders equity section of the balance sheet as at 30th june 1995.