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Question 1 Date | Account Name | Dr | Cr | 1-Apr-12 | No entry required until shares are allotted | | | | | | | 30-Apr-12 | Cash Trust | 1,700,000 | | | Application | | 1,700,000 | | | | | 5-May-12 | Application | 1,700,000 | | | Share Capital | | 1,500,000 | | Allotment | | 200,000 | | Cash at Bank | 1,700,000 | | | Cash Trust | | 1,700,000 | | | | | 8-May-12 | Cash at Bank | 550,000 | | | Allotment | | 550,000 | | Allotment | 750,000 | | | Share Capital | | 750,000 | | | | | 10-May-12 | Formation Cost | 2,000 | | | Share Issue Cost | 1,000 | | | Cash at Bank | | 3,000 | | (Forming the company and share issue cost) | | | | | | | 8-Aug-12 | First Call | 375,000 | | | Share Capital | | 375,000 | | Cash at Bank | 347,500 | | | First Call | | 347,500 | | | | | 8-Nov-12 | Second Call | 375,000 | | | Forfieted share account | | 375,000 | | Cash at Bank | 3,325,000 | | | Second Call | | 3,325,000 | | | | | 10-Mar-13 | Share Capital | 340,000 | | | First Call | | 27,500 | | Second Call | | 42,500 | | Forfieted share account | | 270,000 | | | | | 25-Mar-13 | Cash at Bank | 306,000 | | | Forfieted share account | 34,000 | | | Share Capital | | 340,000 | | Forfieted share account | 2,500 | | | Cash at Bank | | 2,500 |

Question 2 Date | Account Name | Dr | Cr | 1-Jan-13 | Accumulated depreciation of Plant A | 135,000 | | | Plant A | | 90,000 | | Revaluation Surplus of Plant A | | 45,000 | | Accumulated depreciation of Plant B | 40,000 | | | Plant B | | 25,000 | | Revaluation Surplus of Plant B | | 15,000 | | | | |

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