128
P.21
P.22
It
Capital as asset whether shares be alloted or not.
follows that none of $1,420,950 should be shown as an asset. I draw a distinction between uncalled capital on alloted and
on unalloted shares because in latter case there is no
liability on the would be shareholders.
Item Accounts Receivable $221,360.87 is made up of many items. It includes certain unpaid calls $204,800. Regarding 14,740 allcted shares amount due on application and 1st call is $1,500; $90,000 on unpaid 2nd call; this is shown on folio 9 in Ex.L, the remainder $113,300, which is part of $114,800 on folio 13 of Fx.L, is presumably 10% on the 11,350 unalloted shares. That leaves $16,580.87 which is
made up of various amounts due to bank I have not investi-
gated these. In my opinion $204,800 should not be shown
under A/cs Receivable.
Capital on other side.
It should be deducted from Issued
Allotments Suspense A/c was originally headed Application
for Shares A/c' and was opened 22.11.27.
On that date was
On
transfer from Issued Capital A/c folio 7 of $963,000.
30.4.28 balance was $1,133,000.
Remanded 2.15 p.m. 16.12.
Bail au before.
Left in Court.
As before.
5th witness continued.
sa. A.G. Grantham
P.M. 12.12.
Item Uncalled Capital #1,120,950.
Statement that 90% of $1,133,000 is asset of Co. is absolute- -ly false. Books show regarding this amount that bulk of value of unalloted shares was originally in Share Capital Account in f.7 of Ex.l. In november 1927 bulk of this, $963,000, was transferred to Allotment Suspense Account f.49.
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