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Question - ABC Ltd issued a prospectus for the issue of 85,000 $5 shares on 1 January 2021. The prospectus specified that $2.00 was payable on application, a further $1.75 was payable on allotment and the final $1.25 was payable at call. If ABC Ltd has received all funds as expected, what is the correct journal entry to record cash received on final call?
a. Dr Final call A/C $106,250 Cr Share capital $106,250
b. Dr Cash trust A/C $106,250 Cr Final call A/C $106,250
c. Dr Cash A/C $106,250 Cr Final call A/C $106,250
d. Dr Final call A/C $106,250 Cr Cash trust A/C $106,250
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