Preparation of Shares Accounts, Application Account, Allotment Account, And Calls Accounts - SS2 Accounting Lesson Note

Question: 

The following transactions were gathered from the trial balance for LIMICO Company for the year ended December 2022. You are required to prepare: 

• Shares Accounts

Application Account

Allotment Account 

Calls Accounts.

TRIAL BALANCE OF LIMICO COMPANY FOR THE YEAR ENDED DECEMBER, 2022

Debit (₦)

Credit (₦)

Cash

20,000

 

Equipment

80,000

 

Inventory

10,000

 

Accounts Receivable

5,000

 

Prepaid Rent

2,000

 

Bank Loan

 

50,000

Share Capital

 

20,000

Revenue

 

15,000

Cost of Goods Sold

8,000

 

Salaries Expense

4,000

 

Rent Expense

1,000

 

Utilities Expense

500

 

Interest Expense

 

1,000

Total

120,500

86,000

 

Answer:

Share Accounts

Debit (₦)

Credit (₦)

Bank Account

Share Capital

100,000

100,000

Application Account

Debit (₦) 

Credit v

Bank Account

Application Account

30,000

30,000

 

Allotment Account

Debit (₦)

Credit (₦)

Bank Account

Share Capital

Allotment Account

40,000

10,000

30,000

 

Calls Account

Debit (₦)

Credit (₦)

Calls in Arrears

Calls Received

5,000

5,000