Q #3 The following transactions were completed by IQBAL COMPANY Limited: i) Issued 50,000 ordinary shares of Rs.10 each at Rs.12.50 per share to the public payable in full on application. The company received applications for 80,000 shares. The company allotted the shares offered and refunded the amount received in excess. ii) The company issued to the public 50,000 ordinary shares of Rs.10 each payable in full on application. The entire issue was guaranteed by the underwriters. The company received applications for 40,000 shares. As per agreement the underwriters subscribed the balance of the issuance. iii) The company purchased Machinery at a price of Rs.450, 000 and consideration issued to the vendors its own 43,000 Ordinary Shares of Rs.10. iv) Purchased Building and Furniture costing Rs. 1,000,000 and 200,000 against allotting 110,000 stock for Rs. 10 each in full settlement. Required Prepare journal entries in proper form

Q #3 The following transactions were completed by IQBAL COMPANY Limited: i) Issued 50,000 ordinary shares of Rs.10 each at Rs.12.50 per share to the public payable in full on application. The company received applications for 80,000 shares. The company allotted the shares offered and refunded the amount received in excess. ii) The company issued to the public 50,000 ordinary shares of Rs.10 each payable in full on application. The entire issue was guaranteed by the underwriters. The company received applications for 40,000 shares. As per agreement the underwriters subscribed the balance of the issuance. iii) The company purchased Machinery at a price of Rs.450, 000 and consideration issued to the vendors its own 43,000 Ordinary Shares of Rs.10. iv) Purchased Building and Furniture costing Rs. 1,000,000 and 200,000 against allotting 110,000 stock for Rs. 10 each in full settlement. Required Prepare journal entries in proper form

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Q #3
The following transactions were completed by IQBAL COMPANY Limited:
i)
Issued 50,000 ordinary shares of Rs.10 each at Rs.12.50 per share to the public payable in full on
application. The company received applications for 80,000 shares. The company allotted the
shares offered and refunded the amount received in excess.
ii)
The company issued to the public 50,000 ordinary shares of Rs.10 each payable in full on
application. The entire issue was guaranteed by the underwriters. The company received
applications for 40,000 shares. As per agreement the underwriters subscribed the balance of the
issuance.
iii)
The company purchased Machinery at a price of Rs.450, 000 and consideration issued to the
vendors its own 43,000 Ordinary Shares of Rs.10.
iv)
Purchased Building and Furniture costing Rs. 1,000,000 and 200,000 against allotting 110,000
stock for Rs. 10 each in full settlement.
Required
Prepare journal entries in proper form

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