Prepare the ledger entries to record the transactions

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Reference no: EM132709594

Cheers Bhd. with an authorised capital of 60,000,000 ordinary shares of RM1 each offered for sale to the public 30,000,000 ordinary shares of RM2 each at RM2.40 on the following terms:

On application 40 sen

On allotment 80 sen (including premium)

On 1st call 60 sen

On 2nd call and final call 60 sen

Applications were received for 40,000,000 shares. The director rejected application for 5,000,000 shares and allotted the shares on pro-rata basis among the remaining applicants. Any surplus money on application was used to pay up on allotment. All monies due on the allotment and calls on the ordinary shares were duly received.

Required:

Problem i. Prepare journal entries to record the above transactions.

Problem ii. Prepare the ledger entries to record the above transactions.

Reference no: EM132709594

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