X Company made a public issue of 400000 shares of sh.
100 each payable as follows:
On application sh.40 On allotment sh.20 On 1st call sh.20 On 2nd call sh.20 Applications were duly received and allotment and calls successfully completed. Required pass the necessary journal entries in the books of X Company to record the above transactions. (20mks) Date Particulars LF Debit Credit
Bank a/c 16,000,000
To share application a/c 16,000,000
(being the application money received on 400,000 per share)
Share application a/c 16,000,000
16,000,000 Share capital a/c
(being the transfer of application money on
400,000 shares to share capital a/c)
Share allotment a/c
8,000,000 To share capital a/c 8,000,000 (being the amount due on 400,000 shares @ sh.20 per share)
Bank a/c
Share allotment a/c 8,000,000
(being receipt of sh.20 on 400,000 shares) 8,000,000
Particulars Debit Credit Date First call a/c 8,000,000