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WEEK 9
TOPIC: Issue of shares (d) Application, allotment, and call accounts (e) share premium
CONTENT: 1. Preparation of issue of shares with share premium
Illustration 1.
Kalat Ltd. Issued 200,000 ordinary shares of N1.00 each at N1.20 per share payable as follows:
25k per share on application
40k per share on Allotment (including premium)
35k per share on first call
20k per share on second and final call.
Show the ledger accounts to record the above transactions.
Solution
Kalat Ltd.
Dr Bank account Cr
| N
Application 50,000 Allotment 80,000 Ist call 70,000 2nd call 40,000 240,000 Balance b/d 240,000 |
N
Balance c/d 240,000
240,000 |
Dr
Application & Allotment Account
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