Question

During its first year of operations, Moon Ltd invited the public to subscribe to the issue of 20,400 shares
for $10 per share:
	$4.50	payable on application
	$3.00	on allotment
Applications closed and shares were allotted on 1 July. All allotment money was received by 31 July.
The remaining capital of $2.50 per share is called on 1 December and all call money was received by 31 December.

Required
Journalise the transactions to record:
a) the application by investors
b) the allotment of shares on 1 July and the receipt of allotment money received by 31 July.
(Enter debit entries first followed by credit entries.Please include Dr and Cr as appropriate. Narrations are not required).

Answer 1

  

Bank a/c............DR    $91,800

To Share application a/c $91,800 (CR)

(Being application money received on 20,400 share @$4.50)

Share application a/c.........DR $91,800

To share capital a/c $91800 (CR)

( Being application money appropriate to share capital)

Share Allotment a/c ............DR $61,200

To share capital a/c $61,200(CR)

(Being allotment money due on 20,400 @ $3 per share)

Bank a/c ....................DR $61,200

To share Allotment a/c $61,200(CR)

(Being allotment money received)

share call a/c.................DR $ 51,000

To share capital a/c $51,000 (CR)

(being call is made on 20400 share @ $2.50 per share )

Bank a/c ........................DR $51,000

To share call a/c $51,000 (CR)

(Being call money received)

NOTE:

(CR) JUST INCLUDED FOR EASY UNDERSTANDING .