Corporate Accounting

CORPORATE ACCOUNTING

TABLE OF CONTENTS
Question 1........................................................................................................................................1
a) .................................................................................................................................................1
b)..................................................................................................................................................1
Question 2........................................................................................................................................1
a) .................................................................................................................................................1
b)..................................................................................................................................................2
c)..................................................................................................................................................2
d)..................................................................................................................................................2
Question 3........................................................................................................................................3
a)..................................................................................................................................................3
b) .................................................................................................................................................3
Question 4........................................................................................................................................4
a)..................................................................................................................................................4
b)..................................................................................................................................................5
c)..................................................................................................................................................5
Question 5........................................................................................................................................5
a)..................................................................................................................................................5
b)..................................................................................................................................................6
Question 6........................................................................................................................................6
a)..................................................................................................................................................6
b)..................................................................................................................................................6
c)..................................................................................................................................................7
d)..................................................................................................................................................7
REFERENCES................................................................................................................................8

Question 1
a)
Journal Entries Debit Credit
31/07/20 Bank 1000000
To Share Application & Call
money 1000000
01/08/20 Share Application & Call money 1000000
To Equity share capital 800000
To Bank 200000
b)
Ledger account extracts
Bank Account A/c
Particulars Amount Particulars Amount
To Sh Appl & Call
money 1000000 Sh Appl & Call money 200000
Share Application &
Call money A/c
Particulars Amount Particulars Amount
Equity Share Capital 800000 Bank 1000000
Equity Share Capital
A/c
Particulars Amount Particulars Amount
Share Application &
Call money 800000
Question 2
a)
Reasons for corporations to reduce share capital
There may be various reasons under which company may want to reduce the share capital. Most
common reasons are
1