18.
20
| A.
33
A.
A.
A.
allotted in consideration of cash and is paid up to the extent of $10.00 per share, and upon which a total sum of $867,750.00 has been paid in advance of calls.
With your knowledge of accounts, if you had been drawing up this certificate, how would you have stated it?,
I should not have allowed the transactions, which in my opinion, are not cash. I should not accept the $761,100.00 which is the amount of the oross entries, as cash.
Could you face the problem as to how you would word it?.
No, I think I could not.
The Directors had to explain the state of the Company to the "egistrar, and with that problem what could they have said?.
I really camot answer, it is beyond me. The only point is that they had not received cash. I have one certificate filled up which says that cash can be represented by Stock-in-Trade, Goodwill, etc. There is nothing of that kind to bring into account here, what word could they have used? If there is a debt due by the Company and a debt due to the Companyin respect of shares, I think they would be entitled to call them cash, but here there was no debt due by the Company.
There was a debt due on the date of this Certificat( because they held promissory notes.
At the time they treated these as cash.
Re-Cross examined by IR. FREVER.
Q.
A.
32
A.
BY COURT
A.
BY
In April 1928 the debts were $349,000.00 odd that has been swollen by the debt owing by Mr. Cheng Si-Chuen?.
The original figure was 761,100.00 that was re- duced by 405,000.00 paid by Mrs. Brewer and a further v24,120.00 paid by lira. Brewer.
That payment was in cash?.
According to the Loan Ledger it was paid in cash. Loans amounting to $21,500.00 which were included in the ~761,100.00 were at the date of the Balance
Sheet included under the item Promissory Notes, that will reduce it by a further 21,500.00.
$761,100.00 was reduced to $349,630.00, or should it have been reduced lower?,
That should be reduced, it is eventually reduced to ¥349,630.00 then there was a loan of 54,750,00 which had to be added
REVAR.
BY COURT.
A.
Subtracted from then. The 54,000.00 odd in the $349,630.00. To get the net figure you would have to subtract.
I want you to deal with the itemof $761,100.00 and I want you to say how far that has been reduced in the course of time, what did it stand at in the Balance Sheet on April, 1928?.
$294,880.00 under Loans and $21,500.00 under item Promissory Notes.
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