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}

For a Company, Retained Earnings Represent

Multiple Choice