Entry Made

Date
1/15/2013

3/1/2013

6/1/2013

8/15/2013

9/2/2013

Particulars
Land
Ordinary Shares

Dr.
500,000

500,000

Subscription Receivable
Ordinary Shares

420,000

Ordinary Shares
Cash

125,000

Cash
Subscription Receivable

252,000

Cash
Ordinary Shares

Cr.

420,000

Land
Building
Ordinary Shares
Share Premium
Subscription Receivable
Ordinary Shares
Share Premium

125,000

Treasury Shares
Cash

252,000

Cash
Subscription Receivable

40,000
40,000

12/30/2013

12/31/2013 Accumulated profits

Share Premium

Correct Entry
Particulars
Dr.

750,000
750,000

Cash
Treasury Shares

Cr.

540,000
1,260,000
500,000
1,300,000
420,000
200,000
220,000
50,000
50,000

252,000
252,000
25,000
25,000

Accumulated Profits
Dividends payable

110,000

Accumulated profits
SAR Payable

472,500

110,000

472,500

Required:
Correcting Entry
Dr.
Land
Building
Share Premium

40,000
1,260,000

Ordinary Shares
Share Premium

220,000

Treasury Shares
Cash
Ordinary Shares

50,000
75,000

Ordinary Shares
Treasury Shares

Cr.

1,300,000

220,000

1.) Ordinary Shares 01/15

Ordinary Shares 03/01
Balance

500,000
200,000
700,000

2.) No. of Shares (25%)

No. of Employees

4,500
7
31,500
15
472,500

Fair Value/ SAR

SAR Payable
3.) Shares Outstanding 12/20
Dividend/Share
Dividend Payable

110,000
1
110,000

125,000

25,000
25,000

Accumulated Profits
Dividends payable

110,000

Share Premium
Accumulated profits
SAR Payable

750,000

110,000

277,500
472,500

4.) Share Premium 01/15

Share Premium 03/01
Balance

1,300,000
220,000
1,520,000

5.) Net Income

Appropriated - Dividends
Appropriated - SAR
Unappropriated Balance

1,500,000
110,000
472,500
917,500