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

8,000,000
To share capital a/c

(being the amount due on 400,000 shares @

sh.20 per share)

Bank a/c
8,000,000
Share allotment a/c 8,000,000
(being receipt of sh.20 on 400,000 shares)

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 Particulars Debit Credit
Date
First call a/c 8,000,000

Share capital a/c 8,000,000

(Amount due on 400,000 shares @sh. 20 each)

Bank a/c 8,000,000

To share first call a/c 8,000,000

(Being receipt on sh.20 on 400,000 shares)

Second call a/c 8,000,000

Share capital a/c 8,000,000

(Amount due on 400,000 shares @ sh.20 each)

Bank a/c 8,000,000

To share second a/c 8,000,000

(Being on the receipt of sh.20 on 400,000

shares)

This study source was downloaded by 100000797929988 from CourseHero.com on 02-20-2022 11:45:42 GMT -06:00

https://www.coursehero.com/file/75001520/ACC-102docx/
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