Reference no: EM13453660

On 1 April 2013, Paprika Ltd was incorporated and a prospectus was issued inviting applications for 100,000 shares, at an issue price of $10, payable $5 on application, $2.50 on allotment and $1.25 on each of two calls to be made at intervals of 4 months after the date of allotment. By 30 April, applications were received for 120,000 shares. On 3 May, the directors allotted 100,000 shares to the applicants in proportion to the number of shares for which applications had been made. The surplus application money was offset against the amount payable on allotment. The balance of the allotment money was received by 10 May. Legal costs of forming the company were $1,300 and were paid on 11 May. Share issue costs of $800 were also paid on the same date.