Question

Shiva Ltd. issued 20,000 shares of Rs 10 each at a premium of 10%. Payments were to be made as -- on Application Rs 5 (including premium); on Allotment Rs 4 and on First and Final Call Rs 2.

Applications were received for 18,000 shares and all were accepted. All money was duly received.

Pass necessary entries in the Books of the Company.

Answer 1

$\text{JOURNAL}$

$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{L.F}& \text{Dr (Rs)}& \text{Cr. (Rs)}\\ & \text{Bank A/c}& \text{Dr.}& & 90,000& \\ & \text{To Share Application A/c}& & & & 90,000\\ & \text{(Application money received for 18,000 shares @ Rs 5 per}& & & & \\ & \text{share including premium)}& & & & \\ & \underset{–}{}& & & & \\ & \text{Share Application A/c}& \text{Dr.}& & 90,000& \\ & \text{To Share Capital A/c}& & & & 72,000\\ & \text{To Securities Premium Reserve A/c}& & & & 18,000\\ & \text{(Transfer of application money to share capital A/c)}& & & & \\ & \underset{–}{}& & & & \\ & \text{Bank A/c}& \text{Dr.}& & 72,000& \\ & \text{To Share Allotment A/c}& & & & 72,000\\ & \text{(Allotment money received)}& & & & \\ & \underset{–}{}& & & & \\ & \text{Share Allotment A/c}& \text{Dr.}& & 72,000& \\ & \text{To Share Capital A/c}& & & & 72,000\\ & \text{(Allotment money transfer to share capital account)}& & & & \\ & \underset{–}{}& & & & \\ & \text{Bank A/c}& \text{Dr.}& & 36,000& \\ & \text{To Share First and Final Call A/c}& & & & 36,000\\ & \text{(share first and final call money received)}& & & & \\ & \underset{–}{}& & & & \\ & \text{Share First and Final Call A/c}& \text{Dr.}& & 36,000& \\ & \text{To Share Capital A/c}& & & & 36,000\\ & \text{(share first and final call transfer to share capital account)}& & & & \\ & \underset{–}{}& & & & \\ & & & & & \end{array}$