Question

Mohit Glass Ltd issued 20,000 shares of Rs. 100 each at Rs. 110 per share, payable Rs. 30 on application, Rs. 40 on allotment (including premium), Rs. 20 on first call and Rs. 20 on final call. The applications were received for 24,000 shares and allotted 20,000 shares and reject 4,000 shares and amount returned thereon. The money was duly received. Give journal entries.

Answer 1

$\text{Journal Entries}$
$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{LF}& \text{Amt. (Dr)}& \text{Amt.(Cr)}\\ \left(\text{i}\right)& \text{Bank A/c}& \text{Dr}& & 7,20,000& \\ & \text{To Share Application A/c}& & & & 7,20,000\\ & \text{(Application money received on application}& & & & \\ & \text{for 24,000 shares @ Rs. 30 per share)}& & & & \\ & \underset{–}{}& & & & \\ \text{(ii)}& \text{Share Application A/c}& \text{Dr}& & 7,20,000& \\ & \text{To Share Capital A/c}(20,000\times 30)& & & & 6,00,000\\ & \text{To Bank A/c}(4,000\times 30)& & & & 1,20,000\\ & \text{(Share application of 20,000 shares @ Rs. 30 per share}& & & & \\ & \text{transferred to share capital account and the balance}& & & & \\ & \text{returned)}& & & & \\ & \underset{–}{}& & & & \\ \text{(iii)}& \text{Bank A/c}(20,000\times 40)& \text{Dr}& & 8,00,000& \\ & \text{To Share Allotment A/c}& & & & 8,00,000\\ & \text{(Allotment money received on 20,000 shares}& & & & \\ & \text{@ Rs. 40 per share)}& & & & \\ & \underset{–}{}& & & & \\ \text{(iv)}& \text{Share Allotment A/c}& \text{Dr}& & 8,00,000& \\ & \text{To Share Capital A/c}(20,000\times 30)& & & & 6,00,000\\ & \text{To Securities Premium A/c}(20,000\times 10)& & & & 2,00,000\\ & \text{(Allotment money due on 20,000 shares @ 40}& & & & \\ & \text{per share including Rs. 10 for premium)}& & & & \\ & \underset{–}{}& & & & \\ \text{(v)}& \text{Bank A/c}(20,000\times 20)& \text{Dr}& & 4,00,000& \\ & \text{To Share First Call A/c}& & & & 4,00,000\\ & \text{(Share first call money received on 20,000 shares}& & & & \\ & \text{@ Rs 20 per share)}& & & & \\ & \underset{–}{}& & & & \\ \text{(vi)}& \text{Share First Call A/c}& \text{Dr}& & 4,00,000& \\ & \text{To Share Capital A/c}(20,000\times 20)& & & & 4,00,000\\ & \text{(Share first call money due on 20,000 shares}& & & & \\ & \text{@ Rs. 20 per share)}& & & & \\ & \underset{–}{}& & & & \\ \text{(vii)}& \text{Bank A/c}& \text{Dr}& & 4,00,000& \\ & \text{To Share Final Call A/c}(20,000\times 20)& & & & 4,00,000\\ & \text{(Share final call money received on 20,000}& & & & \\ & \text{shares @ Rs. 20 per share)}& & & & \\ & \underset{–}{}& & & & \\ \text{(viii)}& \text{Share Final Call A/c}& \text{Dr}& & 4,00,000& \\ & \text{To Share Capital A/c}& & & & 4,00,000\\ & \text{(Share final call due on 20,000}& & & & \\ & \text{shares @ Rs. 20 per share)}& & & & \end{array}$