Journal Entries
DateParticularsLFAmt. (Dr)Amt.(Cr)(i)Equity Share Application A/cDr11,00,000 To Equity Share Capital A/c (20,000×40)8,00,000 To Equity Share Allotment A/c (10,000×30)3,00,000(Application money transferred to equityshare capital for 20,000 shares @ Rs.40 andRs.3,00,000 is adjusted towards allotment) –––––––––––––––––––––––––––––––––––––––––––––––(ii)Equity Share Allotment A/cDr6,00,000 To Equity Share Capital A/c (20,000×30)6,00,000(Equity share allotment money due on20,000 shares @ Rs.30 per share) –––––––––––––––––––––––––––––––––––––––––––––––(iii)Equity Share First and Final Call A/cDr6,00,000 To Equity Share Capital A/c (20,000×30)6,00,000(Equity share on first and final call due on20,000 shares @ Rs.30 per share)
Note: Entries related to money received against application, allotment and call are directly taken in cash book.
Dr Cash Book (Bank Column) Cr
DateParticularsJFAmt. (Rs)DateParticularsJFAmt. (Rs)Equity ShareEquity Share1,80,000Application12,80,000Application(80,000+1,00,000)Equity ShareBalance c/d20,00,000Allotment3,00,000Equity Share Firstand Final Call6,00,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯21,80,000––––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯21,80,000––––––––––––––––––––––
Working Note:
Applications received for 32,000 shares @ 40 each12,80,000Applications for 2,000 shares rejected and amount(2,000×40)refunded(80,000)¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯12,00,00010,000 shares alloted in full and amount transferred to share capital(10,000×40)(4,00,000)––––––––––––8,00,00020 shares allotted 10 shares hence amount for 10,000 shares adjusted to(4,00,000)share capital(10000×40)and excess 10,000 shares @ Rs. 30 taken as(3,00,000)allotment advance remaining Rs. 10 refunded for excess 10,000 shares(1,00,000)––––––––––––×Total refund (80,000+1,00,000)=Rs.1,80,000Total amount due on allotment (20,000 share @ 30)6,00,000(−)Amount received on application(3,00,000)Amount to be received on allotment¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯3,00,000––––––––––
Adjustment Table
CategoriesSharesStoresApplicationApplicationExcessExcessAdjustedinApplicationAllotedMoney ReceivedMoney dueAllotmentCallsReturn(i)2,000−80,000−80,00080,000(ii)10,00010,0004,00,0004,00,000−−−(iii)20,00010,0008,00,0004,00,0004,00,0003,00,000−1,00,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯32,000––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯20,000––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯12,80,000––––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯8,00,000––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,80,000––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯3,00,000––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ − ––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,80,000––––––––––––––––––––