4. ABC Company issued 1000 ordinary shares of P1 each. Payment for the shares was to...

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Accounting

4. ABC Company issued 1000 ordinary shares of P1 each. Paymentfor the shares was to be made as follows: on application 30 thebe,on allotment 40 thebe and on call 30 thebe. The company received1000 applications. All the instalments were paid except Jay aholder of 100 shares who failed to pay the call money. Jay’s shareswere forfeited. The Directors decided to reissue those shares toSechaba at 75 thebe per share. Prepare the following accounts: a)Applications and allotment account b) Bank account c) Share capitalaccount d) Call account e) Forfeited account f) Sechaba account

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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 See Answer

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