Sources of Finance
Helford Global plc - Answers
Helford Global (8600) plc was formed with an authorised share capital of 139,818 ordinary shares of £1 each. These shares were offered to the public on the following terms:
| Total Ordinary Shares of £1 issued | 139818 | |
| Shares | Premium | |
|---|---|---|
| On application: 25p | 0.25 | |
| On application: 32p premium | 0.32 | |
| On allotment: 25p per share | 0.25 | |
| First and final call: the balance of 50p per share | 0.50 | |
The following events then unfolded:
| Total applications received | 209830 |
| Applications rejected | 22405 |
| Applications refunded | 47607 |
In respect of the applications rejected, the directors allotted shares to the remaining applicants pro rata to their applications.
The accounting entries to record the issue of the shares by Helford Global (8600) plc can be seen below.
Helford Global (8600) plc
| Bank a/c | Number | per share | |||
| Application and Allotment a/c | application | 209830 | 0.25 | 52458 | |
| Application and Allotment a/c | application premium | 209830 | 0.32 | 67146 | |
| Application and Allotment a/c | allotment | 139818 | 0.25 | 34955 | |
| First and Final Call a/c | call | 139818 | 0.50 | 69909 | |
| Application and Allotment a/c | allotment rejected: shares and premium | 22405 | 0.57 | 12771 | |
| Application and Allotment a/c | allotment refund: shares and premium | 47607 | 0.57 | 27136 | |
| Balance c/d | 184560 | ||||
| 224467 | 224467 | ||||
| Ordinary Share Capital a/c | Dr | Cr | |||
|---|---|---|---|---|---|
| Application and Allotment a/c | application | 34995 | |||
| Application and Allotment a/c | allotment | 34995 | |||
| First and Final Call | call | 69909 | |||
| Balance c/d | 139818 | ||||
| 139818 | 139818 | ||||
| Share Premium a/c | |||||
| Application and Allotment a/c | 139818 | 0.32 | 44742 | ||
| Application and Allotment a/c | |||||
| Ordinary Share Capital a/c | 139818 | 0.25 | 34955 | ||
| Ordinary Share Capital a/c | 139818 | 0.25 | 34955 | ||
| Share Premium a/c | 139818 | 0.32 | 44742 | ||
| Bank a/c | allotment rejected: shares and premium | 22405 | 0.57 | 12771 | |
| Bank a/c | application | 209830 | 0.25 | 52458 | |
| Bank a/c | application premium | 209830 | 0.32 | 67146 | |
| Bank a/c | allotment | 139818 | 0.25 | 34955 | |
| Bank a/c | allotment refund: shares and premium | 47607 | 0.57 | 27136 | |
| 154558 | 154558 | ||||
| First and Final Call a/c | |||||
| Ordinary Share Capital a/c | 69909 | ||||
| Bank a/c | 69909 | ||||
| 69909 | 69909 | ||||