Question

PRACTICAL PROBLEMS

(Full Subscription)

The HMT Ltd. issued 15,000 Equity shares of Rs 10 each, payable as under-

On Application	Rs 3	On Allotment	Rs 2
On First Call	Rs 3	On Final Call	Rs 2

All the shares were fully subscribed by the public. All the money due on installments were received.

Pass journal entries to record the above transactions in the books of the company.

Answer 1

Books of HMT Ltd.
Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		45,000
	To Equity Share Application A/c				45,000
	(Share application received on 15,000 shares of Rs 3 each)
	Equity Share Application A/c	Dr.		45,000
	To Equity Share Capital A/c				45,000
	(Share application transferred to share capital)
	Equity Share Allotment A/c	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(Share allotment due on 15,000 shares of Rs 2 each)
	Bank A/c	Dr.		30,000
	To Equity Share Allotment A/c				30,000
	(Share allotment received)
	Equity Share First Call A/c	Dr.		45,000
	To Equity Share Capital A/c				45,000
	(Share first call due on 15,000 shares of Rs 3 each)
	Bank A/c	Dr.		45,000
	To Equity Share First Call A/c				45,000
	(Share first call received)
	Equity Share Final Call A/c	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(Share final call due on 15,000 shares of Rs 2 each)
	Bank A/c	Dr.		30,000
	To Equity Share Final Call A/c				30,000
	(Share final call received)