Question

4. ABC Company issued 1000 ordinary shares of P1 each. Payment for the shares was to be made as follows: on application 30 thebe, on allotment 40 thebe and on call 30 thebe. The company received 1000 applications. All the instalments were paid except Jay a holder of 100 shares who failed to pay the call money. Jay’s shares were forfeited. The Directors decided to reissue those shares to Sechaba at 75 thebe per share. Prepare the following accounts: a) Applications and allotment account b) Bank account c) Share capital account d) Call account e) Forfeited account f) Sechaba account

Answer 1

a) i) Share Application Account

Particulars	Amount thebe (Dr.)	Particulars	Amount thebe (Cr.)
To Share Capital	30000	By Bank	30000
Total	30000		30000

ii) Share Allotment Account

Particulars	Amount thebe (Dr.)	Particulars	Amount thebe (Cr.)
To Share Capital	40000	By Bank	40000
Total	40000		40000

b) Bank Account

Particulars	Amount thebe (Dr.)	Particulars	Amount thebe (Cr.)
To Share Application	30000	By Balance carried down	97000
To Share Allotment	40000
To Share Capital	27000
Total	97000		97000

C) Share Capital Account

Particulars	Amount thebe (Dr.)	Particulars	Amount thebe (Cr.)
To Share Call	3000	By Share Application	30000
To Share Forfeiture Account	7000	By Share Allotment	40000
To Balance carried down	100000	By Share Call	30000
		By Sechada	7500
		By Share Forfeiture Account	2500
Total	110000		110000

d) Call Account

Particulars	Amount thebe (Dr.)	Particulars	Amount thebe (Cr.)
To Share Capital	30000	By Bank	27000
		By Share Capital	3000
Total	30000		30000

e) Forfeited Share Account

Particulars	Amount thebe (Dr.)	Particulars	Amount thebe (Cr.)
To Share Capital	2500	By Share Capital	7000
To Capital Reserve	4500
Total	7000		7000

f) Sechada Account

Particulars	Amount thebe (Dr.)	Particulars	Amount thebe (Cr.)
To Share Capital	7500	By Balance carried down	7500
Total	7500		7500