CO129-535-5 N.I. Brewer- transcript of trial and evidence 1-1-1929 - 31-12-1931 — Page 130

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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