Accounting theory - Assignment Example

Only on StudentShare

Extract of sample
Accounting theory

October: At the directors’ meeting it was decided to allot shares in full to the applicants who had paid the full amount and proportionally to all the remaining applicants. According to the company’s constitution, all surplus money from application can be transferred to Allotment and Call accounts.
February 15: As provided for in the constitution, the directors decided to forfeit these “C” ordinary shares. The constitution further provided for any surplus on resale, after satisfaction of unpaid calls, accrued interest and costs, to be returned to the former shareholders. This is in line with the notice usually given by the board of directors lasting fourteen days after which the defaulting members will lose their shares through forfeiture (Leo, Hoggett, & Sweeting 2012).
February 20: The Company offered ordinary shareholders 1 option (at a price of $1 per option), for every 3 shares held. Each option entitled the holder to buy 1 “D” ordinary share at a price of $1.50 per share, exercisable on 1 ...
Download paper

Summary

This is in accordance with the constitution. The company is also entitled to keep any balance from forfeiture of “B” ordinary shares.
October 1 Applications had been received for 170,000 shares, of which…
Author : chesleyrodrigue

Related Essays

Positive Accounting Theory
5 pages (1255 words) Research Paper
Financial Accounting Theory
6 pages (1506 words) Essay
Financial Accounting Theory
12 pages (3012 words) Essay
ACCOUNTING THEORY
8 pages (2008 words) Essay
Accounting Theory
6 pages (1506 words) Essay
Accounting Theory
2 pages (502 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!