Zing Fin Garden View Limited was registered with a capital of 300 000 ordinary shares at $2. The directors
of the Company decided on 1st January, 2016 to issue a 150 000 shares at $2 with the following terms:
$1.00 on Application
80 cents on Allotment
20 cents on first and final Call
On 1st February, 2016, applications for 200 000 shares were received. One applicant paid 15 000 shares in
full.
On 28th February, 2016, the directors decided to allot the shares as follows:
The applicant of 15 000 fully paid shares was allotted 15 000 shares.
Excess application to be transferred to allotment and calls in advance.
Refund 12 000 shares received on applications.
Apply the remaining excess application money towards allotment.
All allotment money due was received by 30th March, 2016. The directors made the first and final call on 1st
April, 2016. All call money due was received by 15th April, 2016 except for 300 shares.
REQUIRED:
A. Prepare relevant general journal entries to record the issue of shares by Zing Fin Garden View
Limited. Show all workings were applicable.