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Taleb Cars Ltd. issued 5,000 shares of $ 15 each at a premium of $ 5 per share, payable as: On application $ 6 (including

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 allotment are:

A.

Particulares

Dr

Cr

Particulares

Dr

Cr

Share Capital A/c

Share Allotment A/c

Securities Premium a/c

(Share allotment money with premium amount Due)

70,000

55,000

15,000

Bank A/c

Share Allotment A/C

Securities Premium a/c

70,000

55,000

15,000

B.

Particulares

Dr

Cr

Particulares

Dr

Cr

Bank A/c

Share Allotment A/c

(Amount received for 5,000 shares)

70,000

70,000

Share Allotment A/c

Share Capital A/

Securities Premium A/c

(Share allotment money transferred to share capital & securities Premium

70,000

55,000

15,000

C.

Particulares

Dr

Cr

Particulares

Dr

Cr

Share Allotment A/c

Share Capital A/c

Securities Premium a/c

(Share allotment money with premium amount Due)

70,000

55,000

15,000

Bank A/c

Share Allotment A/C

70,000

70,000

D.

Particulares

Dr

Cr

Particulares

Dr

Cr

Bank A/c

Share Capital A/c

Securities Premium a/c

(Share allotment money with premium amount Due)

70,000

55,000

15,000

Share Capital A/

Securities Premium A/c Share Allotment A/c

(Share allotment money transferred to share capital & securities Premium

55,000

15,000

70,000

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