This is corporate accounting assignment. there out are two parts on it. the first part is about...

Question

This is corporate accounting assignment. there out are two parts on it. the first part is about forfieture of share and journal entries and explanation.Part Bconsist of AASBrelated questions. the plegerism should not be more than 30% and u should mention the reference as well.
	
Document Preview: HA2032 Corporate  Accounting (T3, 2012) 
 
Assignment (20 marks 20% of Final Mark)

The assignment has two parts namely Part A(13 marks) & B(7 marks). Part A will 
require the student to provide the necessary journal entries with explanations to 
record the business transactions relating to shares. Part B will have two questions 
th
adapted from the textbook, Financial Accounting 7 edition by Deegan and Samkin. 
 
Part A of the assignment aims to enhance the practical accounting skills of the 
student in the preparation of journal entries in the issuance and forfeiture of shares.  
Part B aims to introduce the student on the importance of the role of the Australian 
Accounting Standards Board (AASB). However, it is well encouraged to include any 
additional information that students may think will be useful in completing the task.

General Rules and Requirements: 
 
This is an individual assignment. It is required to be submitted in both soft and hard-
copy by Friday, 14 December 2012. Total marks applied to this assessment are 20%. 
 
Please ensure that you attach an assignment submission sheet to your hard copy 
only. Late submissions draw a penalty of 5% per day of the value of the assessment 
(1 mark in this case) up to a maximum of fourteen (14) days. After that date, your 
assessment will not be accepted unless prior and special consideration has been 
granted. 
 
This is NOT a report but it is expected that your submission will be in an appropriate 
format. There is no word limit applied but you should ensure that each question is 
appropriately answered. Where references are used, ensure they are recognised 
(refer to student handbook or your lecturer if unsure)

Part A – Accounting for Issuance and Forfeiture of Shares   (13 marks) 
 
ABC Ltd needed funds to finance the expansion of its retailing business. After 
consulting the Finance Director, the Board of Directors decided to offer their shares 
to the public. In its prospectus, it...

Robert · Accepted Answer

Part A – Accounting for issuance and Forfeiture of Shares 
S.No. DATE DEBIT/ 
CREDIT 
PARTICULARS AMOUNT 
1. 31
st
 Aug’12 DR. Bank Account (28,000,000 shares 
for $0.80 per share) 
22,400,000 
  CR. Share Application 22,400,000 
   Application money received.  
2. 31
st
 Aug’12 DR. Share Application  16,000,000 
  CR. Share Capital 16,000,000 
   Application money on shares 
allotted at pro rata basis  
transferred to share capital a/c.
3. 31
st
 Aug’12 DR. Share Application 6,400,000 
  CR. Share Allotment 6,400,000 
   Adjustment of excess application 
money towards allotment money 
due.
4. 31
st
 Sep’12 DR. Share Allotment 16,000,000 
  CR. Share Capital 16,000,000 
   Money due on allotment @ $0.80 
per share as per resolution dated…
5.  DR. Bank Account 9,600,000 
  CR. Share Allotment 9,600,000 
   Receipt of allotment money  
6. 30
th
 Nov’12 DR. Share First and Final Call  8,000,000 
  CR. Share Capital 8,000,000 
   Making the first and final call 
@$0.40 per share and amount due
7. 31
st
 Dec’12 DR. Bank Account 6,400,000 
  CR. Share First and Final Call 6,400,000 
   Share First and final call money 
received @ $ 0.40 per share from 
holders of 16 million shares.
8. 15
th
 Jan’13 DR. Share Capital 8,000,000, 
  CR. Share First and Final Call 1,600,000 
  CR. Shares Forfeited Account 6,400,000 
   Forfeiture of shares in respect of 
which first and final call money 
not received.
9. 15
th
 Feb’13 DR. Bank Account 5,600,000 
  DR. Shares Forfeited Account 2,400,000 
  CR. Share Capital 8,000,000 
   Sale of forfeited shares as “fully 
paid” through auction and amounts 
received.
10.  DR. Expenses of auction       10,000 
  CR. Bank Account       10,

This is corporate accounting assignment. there out are two parts on it. the first part is about forfieture of share and journal entries and explanation.Part Bconsist of AASBrelated questions. the...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment