Olengo lewe telecoms ltd Olengo Lewe Telcoms Ltd has an authorized share capital of Shs 20 million shares divided into 1
Posted: Sat Mar 19, 2022 5:44 pm
Olengo lewe telecoms ltd
Olengo Lewe Telcoms Ltd has an authorized share capital of Shs
20 million shares divided into 1.5 million shares of 10 each. An
extract of the balance sheet as at 30th June 2010 was as
follows:
Shs' 000
Shs' 000
Fixed Assets
10560
Current Assets
Stock
3450
Debtors
1470
Bank Balance
795
Total assets
5715
Creditors
(825)
4890
Total net assets
15450
Financed by:
500000 ordinary shares Shs 10 par value
7500
250000 8% preference shares of Shs 30 par value
7500
Share premium
450
15450
On July 2010, the company offered 500,000 ordinary shares for
sale to the public at Shs 20 each, payable as follows:
Applications were received on 15th July and allotment
made on 31st July and allotment made on 31 July 2010.
The allotment money was received on 15th August.
The first and final call was made on 15 September 2010 and the
money was received on 30 September 2011.
The company received applications for 650,000 shares.
Applications for 50,000 shares were rejected and the application
money was refunded. The shares were then allocated on a prorate
basis, the excess of the application money being carried forward in
part satisfaction of the amounts due on allotment.
Required:
A revised balance sheet to include the new issue of
shares.
(5
marks)
Olengo Lewe Telcoms Ltd has an authorized share capital of Shs
20 million shares divided into 1.5 million shares of 10 each. An
extract of the balance sheet as at 30th June 2010 was as
follows:
Shs' 000
Shs' 000
Fixed Assets
10560
Current Assets
Stock
3450
Debtors
1470
Bank Balance
795
Total assets
5715
Creditors
(825)
4890
Total net assets
15450
Financed by:
500000 ordinary shares Shs 10 par value
7500
250000 8% preference shares of Shs 30 par value
7500
Share premium
450
15450
On July 2010, the company offered 500,000 ordinary shares for
sale to the public at Shs 20 each, payable as follows:
Applications were received on 15th July and allotment
made on 31st July and allotment made on 31 July 2010.
The allotment money was received on 15th August.
The first and final call was made on 15 September 2010 and the
money was received on 30 September 2011.
The company received applications for 650,000 shares.
Applications for 50,000 shares were rejected and the application
money was refunded. The shares were then allocated on a prorate
basis, the excess of the application money being carried forward in
part satisfaction of the amounts due on allotment.
Required:
A revised balance sheet to include the new issue of
shares.
(5
marks)