Chapter 29: Company Accounts (2) - Issue of Shares and Loan Notes

Practice 2

Royal CFC Bhd. has an authorized capital of 300,000 Ordinary Shares of RM 1 each.
200,000 Ordinary Shares had been issued at par and fully paid up on 31 December 2018.

On 1 January 2019, the directors decided to issue the “REMAINING” ordinary shares of
RM 1 each at a premium of RM 0.60 per share, in accordance with the Company’s Articles
which payable as follows:

2019 RM
Jan 15 Application 0.50
Mar 1 Allotment , including premium 0.80
Jun 1 First and Final Call ?

The response from the public was very encouraging. Application for 190,000 shares had been
received. The company decided to deal with them as follows:
(i) 30 applicants applying 1,000 shares each were being rejected and refunded.
(ii) To accept in full applications for 40,000 shares.
(iii) To allot the remaining shares on the basis of one share for every two shares applied
for.
(iv) The excess application monies from the successful applicants were applied to the
allotment.

The balance of the allotment monies were fully received on 15 March 2019.

All the payments due on first and final call were paid in full except for an applicant who was
allotted 5,000 shares failed to pay the amount due.

You are required to:

(a) explain what is the aforesaid term “REMAINING” refer to;
(b) calculate the “Excess Application Monies”;
(c) calculate the “Total Monies Refunded” to the 30 unsuccessful applicants;
(d) record the above issuance of shares in General Journal in the books of Royal CFC
Bhd., without narration.