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
|
Account |
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
|
Account |
Debit (₦) |
Credit (₦) |
|
Bank Account Share Capital |
100,000 |
100,000 |
Application Account
|
Account |
Debit (₦) |
Credit v |
|
Bank Account Application Account |
30,000 |
30,000 |
Allotment Account
|
Account |
Debit (₦) |
Credit (₦) |
|
Bank Account Share Capital Allotment Account |
40,000 10,000 |
30,000 |
Calls Account
|
Account |
Debit (₦) |
Credit (₦) |
|
Calls in Arrears Calls Received |
5,000 |
5,000 |