Question 2.

12 GUM Ltd
General Journal

Date Particulars Debit $ Credit$

2017 Aug 15 Cash Trust 1,550,000
Application 161,550,000
(Cash received on application (1,000,000 shares * 3) + (200,000 shares* $6.00))
Aug 16 Application (1,000,000 shares@ 3,000,000
$3.00)
Allotment (1,000,000 shares@ 2,000,000
$2.00)
Share Capital 5,000,000
(Records allotment of 1,000,000 shares)
Cash 4,200,000