Signal Plc Called for Subscriptions for 8 Million Shares B)

Signal Plc called for subscriptions for 8 million shares.The issue price per share is €3.50 to be paid in three parts: the first payment of €1.00 is to be made on application,€1.50 is to be paid within 1 month of allotment and the remaining €1.00 is to be paid within 3 months of allotment.At the end of July,when applications close,applications for 10 million shares have been received.The shares are allotted on 1 August on a pro rata basis with the excess application money to be applied against the amount due on allotment.The first and final call on the shares is made on 1 October.Assume all amounts on allotment and call are paid by the due date.What are the accounting entries to record these events?

A) $\begin{array}{|c|l|l|l|}\hline \mathrm{Dr} & \text { Cash at bank } & 10000000 & \\\hline \mathrm{Cr} & \text { Share capital } & & 10000000 \\\hline & & &\\\hline{\text {1 August: }} & & \\\hline \mathrm{Dr} & \text { Application } & 8000000 & \\\hline \mathrm{Cr} & \text { Allotment } & & 8000000 \\\hline & & &\\\hline \mathrm{Dr} & \text { Allotment } & 12000000& \\\hline \mathrm{Cr} & \text { Share capital } & & 12000000 \\\hline & & & \\\hline \mathrm{Dr} & \text { Application } &2000000 & \\\hline \mathrm{Cr} & \text { Allotment } & &2000000 \\\hline\\\hline {\text { Summary entry for August: }} & & \\\hline \mathrm{Dr} & \text { Cash at bank } & 10000000 & \\\hline \mathrm{Cr} & \text { Application } & & 10000000 \\\hline & & & \\\hline \text { Entry for } 1 \text { October: } & & \\\hline \mathrm{Dr} & \text { Call } & 8000000 & \\\hline \mathrm{Cr} & \text { Share capital } & & 8000000 \\\hline\end{array}$

B) $\begin{array}{l}\text { Summary entry for July: }\\\begin{array}{|c|l|l|l|}\hline \mathrm{Dr} & \text { Bank trust } & 8000000 & \\\hline \mathrm{Cr} & \text { Application } & & 8000000 \\\hline & & & \\\hline 1 \text { August: } & & \\\hline \mathrm{Dr} & \text { Application } & 8000000 & \\\hline \mathrm{Cr} & \text { Share capital } & & 8000000 \\\hline\\\hline \mathrm{Dr} & \text { Allotment } & 12000000 & \\\hline \mathrm{Cr} & \text { Share capital } & & 12000000 \\\hline {\text { Summary entry for August: }} & & \\\hline \mathrm{Dr} & \text { Cash at bank } & 10000000 & \\\hline \mathrm{Cr} & \text { Allotment } & & 10000000 \\\hline \\\text { Entry for } 1 \text { October: } & & \\\hline \mathrm{Dr} & \text { Call } & 8000000 & \\\hline \mathrm{Cr} & \text { Share capital } & & 8000000 \\\hline & & & \\\hline \text { Summary entry for October: } & & \\\hline \mathrm{Dr} & \text { Cash at bank } & 8000000 & \\\hline \mathrm{Cr} & \text { Call } & & 8000000 \\\hline \end{array}\end{array}$

C) $\begin{array}{l}\text { Summary entry for July: }\\\begin{array}{|c|l|l|l|}\hline \mathrm{Dr} & \text { Bank trust } & 10000000 & \\\hline \mathrm{Cr} & \text { Application } & & 10000000 \\\hline{\text {1 August: }} & & \\\hline \mathrm{Dr} & \text { Application } & & \\\hline \mathrm{Cr} & \text { Share capital } & 8000000 & \\\hline & & & 8000000 \\\hline \mathrm{Dr} & \text { Allotment } & 12000000 & \\\hline \mathrm{Cr} & \text { Share capital } & & 12000000 \\\hline & & & \\\hline \mathrm{Dr} & \text { Application } & 2000000 & \\\hline \mathrm{Cr} & \text { Allotment } & & 2000000 \\\hline\\\hline \mathrm{Dr} & \text { Cash at bank } & 10000000 & \\\hline \mathrm{Cr} & \text { Bank trust } & & 10000000 \\\hline & & & \\\hline \text { Summary entry for August: } & & \\\hline \mathrm{Dr} & \text { Cash at bank } & 10000000 & \\\hline \mathrm{Cr} & \text { Allotment } & & 10000000 \\\hline \\\hline \text { Entry for } 1 \text { October: }&&\\\hline \mathrm{Dr} & \text { Call } & 8000000 & \\\hline \mathrm{Cr} & \text { Share capital } & & 8000000 \\\hline\\\hline\text { Summary entry for October: } & & \\\hline \mathrm{Dr} & \text { Cash at bank } & 8000000 & \\\hline \mathrm{Cr} & \text { Call } & & 8000000 \\\hline\end{array}\end{array}$

D) $\begin{array}{l}\text { Summary entry for July: }\\\begin{array}{|l|l|l|l|}\hline \mathrm{Dr} & \text { Application } & 8000000 & \\\hline \mathrm{Cr} & \text { Share capital } & & 8000000 \\\hline\\ \hline \text { August: } \\\hline \mathrm{Dr} & \text { Allotment } & 12000000 & \\\hline \mathrm{Cr} & \text { Share capital } & & 12000000 \\\hline\\\hline \text { Dr } & \text { Application } & 2000000 & \\\hline \mathrm{Cr} & \text { Allotment } & & 2000000 \\\hline & & & \\\hline \mathrm{Dr} & \text { Cash at bank } & 10000000 & \\\hline \mathrm{Cr} & \text { Bank trust } & & 10000000\\\hline\\\hline {\text { Summary entry for August: }} & & \\\hline \mathrm{Dr} & \text { Cash at bank } & 10000000 & \\\hline \mathrm{Cr} & \text { Allotment } & & 10000000 \\\hline & & & \\\hline \text { Entry for } 1 \text { October: } & & \\\hline \mathrm{Dr} & \text { Cash at bank } & 8000000 & \\\hline \mathrm{Cr} & \text { Call } & & 8000000 \\\hline\end{array}\end{array}$

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