150
P.75
P.76
P.77
Stocks Shares & other Investments.
$415,000 of this consisted
In my
of shares in Instone Trading Co. and Co. formed primarily for
I. & E. business. It never carried on business. Its only
assets 4,500 shares in Instone Banking Corporation.
opinion asset of $415,000 was at that time valueless because
shares in Instone Banking Corporation were valueless. Reading
balance sheet it appears to me balance sheet of prosperous
banking concern with large amount of paid up capital, custom-
ers' deposits in neighoourhood million, with liquid assets,
short term and at call 31⁄2 lakhs. I would not say it was on
verge of bankrupcy at time of balance sheet. In my opinion
its assets at that time were sufficient to discharge its
liabilities to creditors as distinct from shareholders
Customers' deposits. There were customers' deposits $260,000
was made up of $260,000 under mortgage & long term loan, which
was a cross entry.
X X. Point whether shares have been allotted or not is not
altogther a matter of law, partly matter of fact. Allotment
of shares in law is binding contract to take shares in
accordance with Company's Articles.
Applications for
$1,133,000, I don't think they were good because in my view
they weren't properly filled up. There is law in that opinion
was material.
I don't consider them complete offers owing to omission whicn
I don't think Co. had any power to accept
application because cash deposit of 5% did not accompany
application.
Allotment Suspense Account means that amount transferred to
it is in suspense; having transferred this amount to Allotment
Suspense A/c it had to be credited to respective shareholders
in system of double entry. The crediting is question of
book-keeping.
Statement of affairs etc. took place a year after balance
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