203
Out of that $204,800
these shares
$133,300 of this represents 10% of
had not been alloted ? You tell me so.
Do you agree or not? I can tell you what Mr. Li Tung told me. If you want that evidence you can have it, I know no more.
Out of the amount of $114,800.00 in the head office balance sheet which you say you knew about and approved that figure $114,800.00 is that made up of $133,000.00 being the 10% on these
unalbotted shares ? This is the head office account.
Does it include the 10% on these shares which have not been allotted or not ? Give me the Ledger and I will tell you. This is the head office account. All the allotment on first calls including these transferred to Suspense A/c are in this account.
That includes the 10% on these shares which have never been allotted ? Yes, on all shares whether allotted or unallotted. As soon as the shares were accepted, they were debited with 10%.
Judge:- Does that item include 10% on shares which have not been allotted ? Not allotted, but which were accepted.
Judge:- On which you received nothing?
Yes.
Do you consider that a proper entry to put in as Accounts Receivable in the balance sheet ? It is not an entry that I would have made, and not an entry I did make.
Do you object to it ? Yes, I would not do it that way, but I cannot tell a qualified Accountant he is wrong I consider it as morally objectionable.
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Were you so much in the hands of your auditor that you allowed him to do it ? Not a bit.
Whom did he consult ? My wife, and the secretary. I was absent and to make this balance sheet good my wife made him sign the balance sheet. That is why you have one signature only.
Another item on the Asset side. Uncalled Capital $1,420,950.00 This is down in your balance sheet as a perfectly good asset. Not in my sheet but in the printed balance sheet.
It is a perfectly good asset ? Perfectly good asset.
I do not believe I so replied, but memory does not supply
the correction. In any case the reply stated does not represent my opinion (Compare with paragraph 13 of same page).
Did that item $1,420,950.00 include 90% of these shares which
had not been allotted ? Again I believe it to be so, but I can only go on what I am told by the person who put them there, if
you would like to accept that evidence.
Do you admit that every call on every share which was ever subscribed was included in that figure ? I believe it to be so, I don't know where he got it from unless he got it from that.
You have the whole of your capital on one side of your balance sheet to which you agres therefore, to have your balance
agree you must take that figure ? That is what I say, unless he has taken that figure I don't know what he can do.
On that item 90% of $1,133,000 amounting to $1,019,700.00 represents calls on shares, on which at the time that balance
12.