IDPM Ltd directors have decided to issue a prospectus on 26th February, 2011 for 15 million shares at $9.00
It closes on 29th March and requires payment of $3 per share on application.
Directors allocate shares on 11th April and upon allotment, a further payment of
$3 per share is required and paid in 14 days from allocation.
First and final call is on 18th June when the balance is to be paid, amount to be
Paid within 14 days (assume all received and recognised on that date).
Prepare all journal entries assuming all application monies recognised on 29th March. There was an oversubscription for another 400,000 shares and the directors decided to issue share son a “first-come, first-served” basis.

IDPM Ltd directors have decided to issue a prospectus on 26th February, 2011 for 15 million shares at $9.00

First, what is the value of the issue
It closes on 29th March and requires payment of $3 per share on application.
Directors allocate shares on 11th April and upon allotment, a further payment of
$3 per share is required and paid in 14 days from allocation.
First and final call is on 18th June when the balance is to be paid, amount to be
Paid within 14 days (assume all received and recognised on that date).
second, cash received on 29th March, 25 April and 2nd July
Prepare all journal entries assuming all application monies recognised on 29th March. There was an oversubscription for another 400,000 shares and the directors decided to issue share son a “first-come, first-served” basis.
I expect we will refund the oversubscription

Issued Capital Credit
Cash Debit