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  3. on 5 th july 2020 abc ltd issued a prospectus offe

On 5 th July 2020 ABC Ltd issued a prospectus offering 70 000 of its...

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Accounting

On 5 th July 2020 ABC Ltd issued a prospectus offering 70 000 of its ordinary shares, payable $1 on application, $1 on allotment and $2 to be called as and when required. When applications closed on 19th July, applications had been received for 130 000 shares, including one applicant for 10 000 shares who had paid in full. The directors allotted the shares on 20th July as follows. 1) The applicant for 10 000 shares, who paid in full, was allotted 10 000 shares. 2) Applications for 20 000 shares were rejected and the application money was refunded. 3) The remaining applicants were allotted 6 shares for every 10 applied for. The excess application money on these shares was to be applied in part payment of allotment money. All allotment money was received by 1 August.

1. Journalise the above transactions and events incurred in the year 2020/2021 in chronological order (you are required to prepare the journal entries for the period from 1st July 2020 to 30th June 2021).

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