A public company issued 2000 equity share of 100 each payable as follows. On application 20 per , on allotment 40 per ,( including 5 premium) , on 1st call 25 per , on 2nd and final call balance due. The calls money on 100 shares. Pass necessary entire and prepare journal. Face value=100, issue price=100+5

Dear Student,


Journal
Date Particulars L.F. Debit Credit


 
Bank A/c                                                                          …Dr.
                To Equity Share Application A/c
(Being the application money received for 2,000 equity shares)
  40,000
40,000
  Equity Share Application A/c                                       …Dr.
                To Equity Share Capital A/c
(Being the share application money transferred to Equity Share Capital A/c)
  40,000
40,000
  Equity Share Allotment A/c                                         …Dr.
                To Equity Share Capital A/c
                To Securities Premium Reserve A/c
(Being the share allotment money due)
  80,000
70,000
10,000
  Bank A/c                                                                          …Dr.
                To Equity Share Allotment A/c
(Being the allotment money received for 2,000 equity shares)
  80,000
80,000
  Equity Share First Call A/c                                            …Dr.
                To Equity Share Capital A/c
(Being the first call money due)
  50,000
50,000
  Bank A/c                                                                          …Dr.
                To Equity Share First Call A/c
(Being the first call money received for 2,000 equity shares)
     
  Equity Share Final Call A/c                                           …Dr.
                To Equity Share Capital A/c
(Being the final call money due)
  40,000
40,000
  Bank A/c                                                                          …Dr.
                To Equity Share Final Call A/c
(Being the final call money received for 2,000 equity shares)
  40,000
40,000

Regards.

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