Cara Van plc wants to issue one million 1 equity shares payable as follows: On application
Question:
Cara Van plc wants to issue one million £1 equity shares payable as follows:
On application – 70p (including 30p premium)
On allotment – 30p
On call two months after – 30p
After publication of the prospectus, Cara Van plc received applications for 1,500,000 shares. Small applications totalling 500,000 were rejected.
Required
Provide journal entries to record the above receipts on the issue of the shares.
Step by Step Answer:
The journal entries is as follows i Deposit 500000 shares in Ca...View the full answer
Introduction To Financial Accounting
ISBN: 9781526803009
9th Edition
Authors: Anne Marie Ward, Andrew Thomas
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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