Question - The following information relating to North Point Ltd is available.
a) North Point Ltd was incorporated on 1 June 2015 and five (5) subscribers undertook to purchase 10,000 $1 ordinary shares each in the company and paid for the shares on 1 June 2015.
b) $2,500 was paid to the solicitors for the formation of the company on 2 June 2015.
c) The directors resolved to issue 500,000 ordinary share payable 50% upon application. Applicants applied for 600,000 shares and 50% each share. The unsuccessful shareholders were refunded on 10 June 2015.
d) The directors made a call of 50 cent for ordinary shares on 1 October 2015 and all call money was received except 10,000 shares.
e) On 1 November 2015 the directors issued 1000 each of 10% Preference shares at $100 each. The applicants paid full amount for the shares and the shares were allotted on 10 November 2015.
f) On 1 December 2015, the directors decided to raise $500,000 by issuing 5,000each of 8% debentures maturing in 10 years. The debentures were fully subscribed and allotted by 10 December 2015. 8% debentures maturing in 10 years. The debentures were fully subscribed and allotted by 10 December 12.
In this task you are required to: Record the above transactions in the appropriate journals. (Posting to the ledger is not required.)