Sharad Singh Company Ltd. has been incorporated with an authorised capital of $R s . 10, 00, 000$ divided into $10, 000$ equity shares of $R s . 100$ each. The company issued $5, 000$ shares to the public payable $R s . 20$ per share on application, $R s . 20$ per share on allotment, $R s . 30$ per share on first call and the balance on the final call. All the money was duly received. Make Journal entries to record the issues of share. Also prepare Bank Account and the Balance Sheet.

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Solution

Journal entries for the following transactions are recorded as follows
$B a n k a / c D r R s 1, 00, 000 T o s h a r e a p p l i c a t i o n a / c R s 1, 00, 000$

$S h a r e a p p l i c a t i o n a / c D r R s 1, 00, 000 T o s h a r e e c a p i t a l a / c R s 1, 00, 000$

$S h a r e a l l o t m e n t a / c D r R s 1, 00, 000 T o s h a r e c a p i t a l a / c R s 1, 00, 000$

$B a n k a / c D r R s 1, 00, 000 T o s h a r e a l l o t m e n t a / c R s 1, 00, 000$

$S h a r e f i r s t c a l l a / c D r R s 1, 50, 000 T o s h a r e c a p i t a l a / c R s 1, 50, 000$

$B a n k a / c D r R s 1, 50, 000 T o s h a r e f i r s t c a l l a / c R s 1, 50, 000$

$S h a r e s e c o n d c a l l a / c D r R s 1, 50, 000 T o s h a r e c a p i t a l a / c R s 1, 50, 000$

$B a n k a / c D r R s 1, 50, 000 T o s h a r e s e c o n d c a l l a / c R s 1, 50, 000$
Bank account

Particular

Amount

Particular

Amount

To share application a/c

To share allotment a/c

To share first call a/c

To share second call a/c

Rs1,00,000

Rs1,00,000

Rs1,50,000

Rs1,50,000.

To balance c/d

Rs5,00,000

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