PROFMAN PLC has authorized share capital ofN200,000,000 divided intoN200,000,000 ordinary shares ofN1.00K each. N120,000,000ordinary shares were offered for public subscription on 20thJanuary 2005 payable by instalments as follows:
N0.55K onapplication per share
N0.45K onallotment per share
All the shares offered were subscribed and allotted. Application money was received on 27th January 2005, and allotmentmoney was received on 31st January 2005.
Required:
Show journal entries to record the issue and allotment of shares in the company's books bearing in mind that the directorspassed Allotment Resolution on 27th January 2005.