When Shares Are Issued Fully Payable on Application, the Journal

question 57

Short Answer

When shares are issued fully payable on application, the journal entries to record the issue (assuming the minimum subscription is reached) are $\begin{array}{cccc}\text { Cash trust } & \mathrm{Dr} & \mathrm{X} & \\\text { Application } & \mathrm{Cr} & & \text { X } \\\text { Allotment } & \mathrm{Dr} & \mathrm{X} \\\text { Share capital } & \mathrm{Cr} & & \mathrm{X} \end{array}$

$\begin{array}{lll}\text { Cash trust } & \text { Dr } & \text { X } \\\text { Application } & \mathrm{Cr} & & \mathrm{X} \\\text { Cash } & \mathrm{Dr} & \mathrm{X} \\{\text { Cash trust }} & \mathrm{Cr}&& \mathrm{X} \end{array}$

$\begin{array}{lllll}{\text { Cash }} & \mathrm{Dr} & \mathrm{X} & \\ \text { Call } & \mathrm{Cr} & & \mathrm{X} \\\text { Call } & \mathrm{Dr} & \mathrm{X} & \\ \text { Share capital } & \mathrm{Cr} & & \text { X }\end{array}$


$\begin{array}{llc}\text { Cash trust } & \mathrm{Dr} & \mathrm{X} \\\text { Application } & \mathrm{Cr} &&\mathrm{X} \\\text { Application } & \mathrm{Dr} & \mathrm{X} \\\quad \text { Share capital } & \mathrm{Cr} &&\mathrm{X} \\\text { Cash } & \mathrm{Dr} & \mathrm{X}\\\text { Cash trust}& \mathrm{Cr} &&\mathrm{X} \end{array}$

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Definitions:

Situational Attribution

The process of attributing behavior to external circumstances or situations rather than to internal personality traits or dispositions.

Empathy Gap

The inability to accurately predict one's own or others' emotional states and behaviors in different situations, usually underestimating the influence of emotions.

Tend and Befriend

A theory that suggests in times of stress, individuals, particularly females, will seek social alliances and support, rather than isolating themselves or fighting.

Stressful Situations

Scenarios that cause psychological or physical tension or strain.