When a company issues shares with partial payment required on application and the remainder on allotment,...
When a company issues shares with partial payment required on application and the remainder on allotment, the journal entry to record cash received on allotment of shares is:
|
Dr Cash at bank Cr Call |
|
Dr Cash trust Cr Share capital |
|
Dr Cash at bank Cr Allotment |
|
Dr Cash trust Cr Application |
Homework Answers
When cash is received on allotment of shares , journal entry is as follow:
1. When allotment is made the amount of accepted application received is transferred to Share capital Account.
| Share Application A/c … Dr. (No. of Shares allotted x application money per shares) |
| Share Capital A/c Credit |
2. When Allotment Money becomes Due:
| Share Allotment A/c Dr. (No. of Shares allotted x allotment money per share) |
| Share Capital A/c Credit |
3.When cash received on allotment of share
| Cash at Bank Debit (No. of Shares allotted x allotment money per share) |
| To Share Allotment A/c Credit |
Add Answer to:
When a company issues shares with partial payment required on
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Why do we need to use call in advance here? and where is the
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only question 4 please Trust Bank account. The directors proceeded with The directors then issued a...
only question 4 please
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• Prepare the general journal entries to record the above independent scenarios. • Narrations to general journal entries must be provided. • Complete and detailed workings/calculations must be shown....
• Prepare the general journal entries to record the above
independent scenarios.
• Narrations to general journal entries must be provided.
• Complete and detailed workings/calculations must be shown.
• Absence of workings/calculations may lead to zero marks
allocated to the particular general journal entry, despite the fact
that the entry might be correct!
PLEASE answer scenario5 to 7 thank you very much
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Why do we need to use call in advance here? and where is the
20000 x 2 call in advance from? Thank you.
Exercise 9.4 Share issue with oversubscription (Adapted). On July 2019, Denman Ltd issued a prospectus offering 160 000 of its ordinary shares payable $1 on application, $1 on allotment and $2 to be called as and when required. When applications closed on 23 July, applications had been received for 240 000 shares, including one applicant for 20...
only question 4 please
Trust Bank account. The directors proceeded with The directors then issued a notice to these shareholders on 30 April asking for the payment due on Allotment. This was all received by 14 May. Required: Prepare general journal entries to record the above transactions. 13. On 31 August, Fripp Ltd issued a prospectus offering 500,000 $2.00 ordinary eoshares, $1.50 payable on Application and $0.50 on Allotment When applications closed on 31 October applications had been received for...
QUESTION 4 Spice Ltd makes an offer to the general public of 10 million shares at an issue price of $5.00. Spice Ltd requires a $2.50 per share payment on application. Another $2.50 is to be paid as a call at a future date to be determined by the board of directors. On application money was received on 12 July for exactly 10 million shares and shares were allotted on that date. On 28 July, 9.5 million shareholders paid their...
• Prepare the general journal entries to record the above
independent scenarios.
• Narrations to general journal entries must be provided.
• Complete and detailed workings/calculations must be shown.
• Absence of workings/calculations may lead to zero marks
allocated to the particular general journal entry, despite the fact
that the entry might be correct!
PLEASE answer scenario5 to 7 thank you very much
The directors issued a prospectus offering 40,000 ordinary shares at an issue price of $2.80, payable $2...
D37. A major disadvantage for shareholders, of using debt financing, is: the company is locked in to fixed payments of interest and principal shareholder control is altered interest is not deductible for tax purposes debtholders assume full control of the company 38. If a company declares a 10% share dividend on its ordinary shares, the account to be debited on the date of declaration is: Retained Earnings Ordinary Share Dividend Payable Paid-up Capital Ordinary Shares 39. An appropriate journal entry...
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