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Irridium Ltd Had a Share Capital of 500 000 $1

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Irridium Ltd had a share capital of 500 000 $1 ordinary shares fully paid.The company decided to make a new share issue of 100 000 $1 shares, payable in full on application.These shares had to be first offered to existing shareholders.Suppose that the issue was 90% subscribed by the existing shareholders by 31 January 2010, and that the other 10% of shareholders did not apply for any shares.The rights issue is non-renounceable.What would be the correct journal entry for the new issue?


A)
 Dr Trust account $100000 Cr Bonus issue $100000 Dr Bonus issue $10000Cr Forfeited shares reserve $10000  \begin{array}{llcc} \text { Dr Trust account } &\$100000 \\ \text { Cr Bonus issue } &&\$100000\\\\ \text { Dr Bonus issue } &\$ 10000\\ \text {Cr Forfeited shares reserve } &&\$ 10000\\ \text { } &\\ \text { } &\\\end{array}

B)
 Dr Bank $90000 Cr Paid up capital—ordinary $90000\begin{array}{lll}\text { Dr Bank } & \$ 90000 & \\\text { Cr Paid up capital—ordinary } & & \$ 90000 \\\end{array}


C)
Dr Bank $100000 Cr Paid up capital-ordinary$90000Cr Non renounceable shares account$10000\begin{array}{llcc} \text {Dr Bank } & \$100000 \\ \text { Cr Paid up capital-ordinary} &&\$90000\\ \text {Cr Non renounceable shares account} &&\$10000\\\end{array}


D)
 Dr Bank $100000 Cr Allotment $100000\begin{array}{llcc} \text { Dr Bank } &\$ 100000 \\ \text { Cr Allotment } && \$ 100000\\\end{array}

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