Question 7
The public was invited to subscribe 320 000 of ordinary shares of Stone Ltd on 10th January 2014. The shares were valued at $15 per share.
The following amounts were payable:
On application: $8.00 per share
On allotment: $4.00 per share
By 10th February 2014, applications were closed.
There was an oversubscription of the shares on offer. The shares were allotted on a first come, first serve basis.
Application money for 20 000 shares were returned to unsuccessful applicants.
On 5th March 2014 : Allotment amount owed by the shareholders were paid.
On 10th June 2014 : The company made a call for the remainder of the share amount.
On 15th June 2013 : The call amount owing was paid by shareholders.
However, 10,000 shares remained unpaid in call amounts.