Question 3

Taleb Cars Ltd. issued 5,000 shares of $ 15 each at a premium of $ 5 per share, payable as:

On application $ 6 (including $ 2 premium) per share

On allotment $ 14 (including $ 3 premium) per share

Applications were received for 5,000 shares and allotment was made to all.

The journal entries of application are.

A.

Particulares	Dr	Cr	Particulares	Dr	Cr
Bank A/c Share Capital A/c Securities Premium A/c (Amount received for 5,000 shares)	30,000	20,000 10,000	Share Application A/c Share Capital A/ Securities Premium A/c (Share application money transferred to share capital & securities Premium	30,000	20,000 10,000

B.

Particulares	Dr	Cr	Particulares	Dr	Cr
Bank A/c Share Capital A/c Securities Premium A/c (Amount received for 5,000 shares)	30,000	20,000 10,000	Application A/c Securities Premium A/C Share Capital A/ (Share application money& securities Premium transferred to share capital	20,000 10,000	30,000

C.

Particulares	Dr	Cr	Particulares	Dr	Cr
Application A/c Share Capital A/c (Amount received for 5,000 shares)	30,000	30,000	Bank A/c Share Capital A/ Securities Premium A/c (Share application money transferred to share capital & securities Premium	30,000	20,000 10,000

D.

Particulares	Dr	Cr	Particulares	Dr	Cr
Bank A/c Share Application A/c (Amount received for 5,000 shares)	30,000	30,000	Share Application A/c Share Capital A/ Securities Premium A/c (Share application money transferred to share capital & securities Premium	30,000	20,000 10,000