Call

- when the corporation NOTIFIES Mr. A to pay the subscription

Deliquent Subscription
- Mr. A didnt respond to the call; subscriber did not pay
- ..after 30 days of the CALL
sell it for PUBLIC AUCTION
a. SHORT METHOD: DELIQUENT
Subscription Receivable - Mr. A
Subscriptions Share Capital - Mr. A

100, 000
100, 000

Cash
Subscription Receivable - Mr. A

40, 000
40, 000

Advertising
Interest
Receivable from Highest Bidder
Cash

10, 000

Receivable from Highest Bidder

Interest Income

5, 000

Subscription Receivable - Mr. A

Receivable from Highest Bidder
Cost per share
Mr. B
Mr. C
Mr. D

10, 000
5, 000

10, 000

5, 000
60, 000
15, 000
P 75, 000

700 Shares
800 Shares
900 Shares
Cash
Receivable from Highest Bidder
Subscription Receivable - Mr. A

75, 000

Subscription Share Capital - Mr. A

Shared Capital

100, 000

15, 000
60, 000

100, 000

b. SHORT METHOD: DELINQUENT WITH PREMIUM

Subscription Receivable - Mr. A
Subscriptions Share Capital - Mr. A
Shared Premium

120, 000
100, 000
20, 000

Cash
Subscription Receivable - Mr. A

40, 000
40, 000

Advertising
Interest
Receivable from Highest Bidder
Cash

10, 000

Receivable from Highest Bidder

Interest Income

5, 000

Subscription Receivable - Mr. A

Receivable from Highest Bidder
Cost per share
Mr. B
Mr. C
Mr. D

10, 000
5, 000

10, 000

5, 000
80, 000
15, 000
95, 000

903 Shares
902 Shares
901 Shares
Cash
Receivable from Highest Bidder
Subscription Receivable - Mr. A

95, 000

Subscription Share Capital - Mr. A

Shared Capital

100, 000

15, 000
80, 000

100, 000

c. NO ONE BUYS THE AUCTION

*TS is replacled with CASH
Subscription Receivable - Mr. A
Subscriptions Share Capital - Mr. A
Shared Premium

120, 000
100, 000
20, 000

Cash
Subscription Receivable - Mr. A

40, 000

10, 000
5, 000

Advertising
Interest

Receivable from Highest Bidder

Cash

10, 000

Receivable from Highest Bidder

Interest Income

5, 000

Subscription Receivable - Mr. A

Receivable from Highest Bidder
Cost per share
Mr. B
Mr. C
Mr. D

40, 000

10, 000

5, 000
80, 000
15, 000
95, 000

903 Shares
902 Shares
901 Shares
Treasury Shares
Receivable from Highest Bidder
Subscription Receivable - Mr. A

95, 000

Subscription Share Capital - Mr. A

Shared Capital

100, 000

15, 000
80, 000

100, 000

TRUST FUND DOCTRINE: for every Peso/amount for treasury shares you should
have a corresponding or back-u from your ACCUMULATED PROFITS (RE)
Appropriated Accumaulated Profits
Accumulated Profits

95, 000
95, 000

d. COST METHOD
Treasury Shares
Shares
Cost per share

P 95, 000
1, 000
P 95

a) sell at P 95
Cash
Treasury Shares

9, 500

Appropriated Accumulated Profits

Accumulated Profits

9, 500

9, 500
9, 500

b) sell at P 100
Cash
Treasury Shares
Shared Premium- Treasury Shares

10, 000

Appropriated Accumulated Profits

Accumulated Profits

9, 500

9, 500
500
9, 500

c) sell at P 90
Cash
Accumulated Profits
Treasury Shares

9, 000
500

Appropriated Accumulated Profits

Accumulated Profits

9, 500

9, 500
9, 500

d) sell at P 80
Cash
Shared Premium -Treasury Shares
Accumulated Profits
Treasury Shares

8, 500
500
500

Appropriated Accumulated Profits

Accumulated Profits

9, 500

9, 500
9, 500