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Deco Bhd. was formed on 1 July 2019. The Board of Directors decided to issue 400,000 ordinary shares and is payable as follows:
A prospectus was issued with closing date for applications being 1 September 2019. At this date RM400,000 had been received with applications for 400,000 shares. The shares were allotted on 3 September 2019. All allotment money was received at 2 October 2019.
Problem 1: Prepare the journal entries for the transaction above
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