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Journal_Entries_Solution

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11 views

Journal_Entries_Solution

If you know you know

Uploaded by

garima2008negi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Solution to Illustration 1 (Undersubscription)

X Ltd. issued 5,000 equity shares of Rs.10 each payable as: Rs.2 on application, Rs.3 on allotment,

and Rs.5 on final call. The public applied for 4,000 shares, which were allotted.

All the moneys due on shares were received except the final call on 200 shares.

Pass the required journal entries.

Solution:

Journal Entries:

1. For application money received:

Bank A/c Dr. 8,000

To Share Application A/c 8,000

(Being application money received for 4,000 shares @ Rs.2 per share)

2. For transferring application money to share capital:

Share Application A/c Dr. 8,000

To Share Capital A/c 8,000

(Being application money transferred to share capital)

3. For allotment money due:

Share Allotment A/c Dr. 12,000

To Share Capital A/c 12,000

(Being allotment money due for 4,000 shares @ Rs.3 per share)

4. For allotment money received:

Bank A/c Dr. 12,000

To Share Allotment A/c 12,000


(Being allotment money received)

5. For final call money due:

Share Final Call A/c Dr. 20,000

To Share Capital A/c 20,000

(Being final call money due for 4,000 shares @ Rs.5 per share)

6. For final call money received (except on 200 shares):

Bank A/c Dr. 19,000

To Share Final Call A/c 19,000

(Being final call money received on 3,800 shares)

7. For unpaid final call amount on 200 shares:

Calls in Arrears A/c Dr. 1,000

To Share Final Call A/c 1,000

(Being final call money not received on 200 shares)

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