Question

On 1 July 2019, Contiki Ltd. was registered as a public company. On 4 July 2019, a prospectus was issued inviting applications for 40 000 shares payable $2 on application, $2 on allotment and $1 on a call to be made 3 months after the date of allotment.

By 31 July, applications were received for 50 000 shares. On 3^rdof August, the directors decided to reject and refund the application of 2,000 shares and allotted 40 000 shares to the applicants on a pro-rata basis. The remaining surplus was offset against the amount payable on allotment. The balance of allotment money was received by 12^thof August. Share issue costs of $1 250 were paid on 31^stof August.

A call was made on 3^rdof November to be paid on 15 November, but the holders of 2 400 shares did not pay the call. On 30^thof November these shares were forfeited. On 4^thof December, these shares were reissued as fully paid for a share value of $3 per share.

Required (Show all workings and ignore narrations):

Prepare entries in general journal form to record all of the above transactions

Answer 1

Solution :