Q2 COMPANY ACCOUNTING ( 7 Marks )

1. THE COMPANY has an authorized capital of Rs 3000,000 divided into 300000 shares of Rs 10 each. 160000 shares were issued to public at 12 per share (including Rs 2 premium) payable in full with application. The companys banker reported that application had been received for 190000 shares. The directors allotted 160000 shares and directed the bankers to return the excess of the application money.

2. The company offered to the public 50,000 ordinary shares of Rs 10 each payable in full on application the entire issue was under-written .the company received application for 35,000 shares. These shares were allotted to the public and as per agreement under- writers subscribed the balance of the issue.

Jan.6 Issued for cash 20000 shares of common stock at 15 per share. The shares were issued to Gordon and 10 other investors.

June 4 To acquired land as a building site in exchange for 15000 shares of common stock. In view of the appraised value of the land and the progress for the company, the directions agreed that the common stock was t be valued for purpose of this transactions at Rs16 per share.

Nov.15 Issued 10000 10%Debentures @ 100 each and repayable after 5 years 105.

Nov.18 Issued 5000 10%Debentures @ 90 each and repayable after 3 years 110.

Dec.20 Declared and paid the cash dividend, 5% of total shares issued.

Dec 31 Make appropriation of contingency reserve 25000.

REQUIRED

Prepare journal entries in general journal in standard form.