The Wide Trading Company Limited has an authorized capital of $300,000 dividend into
5,000 ordinary shares of sh. 100 each.
On January 2020, the Board of directors decided to issue 4,000 shares at $125 each payable as
$50 on application. $50 on allotment (including the $45 premium) and $35 on first and
final call. The applications were receivable on 20 January 2020 when allotment was made. The
allotment money was receivable by 31 March 2020. Applications were received for 6,000 shares.
The directors decided to refund money for 2,000 shares. The allotment money was received on
the due date. The first and final call was made and the call money received on the due date.
Required:
(i) Show entries necessary to record the above matters in the company’s books(15 Marks)
(ii) Balance sheet as at 12 April 2020 (5 Marks)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below i Journal Entries On 20 January 2020 when applications were received for 6000 shares Debi... View the full answer