Answer Happy

(a) Briefly explain TWO (2) methods of payment for the issuance of share. (b) MOLLY Berhad decided to issue 1,000,000 units of ordinary shares. The terms of payment were as follows: On application RMO.70 On allotment 1.00 On 19 call 0.60 On 2nd call 0.40 Applications were received for 1,250,000 units of ordinary shares and the directors resolved to refund applications for 250,000 units of ordinary shares and give full allotment for 1,000,000 units of ordinary shares. All monies were duly collected when due, except for one shareholder who held 10,000 units of shares who also paid the 2nd call money together with the 1st call money Required: Prepare journal entries for the above transactions. (c) Based on Question 1(b), prepare an extracted statement of financial position for MOLLY Berhad