Question

Amar Ltd. issued 1000 equity shares of ₹ 100 each at par payable ₹ 30 on Application, ₹ 40 on Allotment and ₹ 30 on First and Final call. The company received applications for 1,200 shares. The Board of Directors rejected 200 applications and application money was refunded. All the money was duly received. Show journal entries in the books of Amar Ltd.

Answer 1

Journal Entries in the books of Amar Ltd.
Date	Particulars	L.F	Debit Amount (₹)	Credit Amount (₹)
1.	Bank A/c		36,000	-
	To Equity Share Application A/c		-	36,000
	(Being application money on 1200 Equity shares @ ₹ 30 per share received)
2.	Equity Share Application A/c		36,000	-
	To Equity Share Capital A/c		-	30,000
	To Bank A/c		-	6,000
	(Being application money transferred to Share Capital A/c and excess application money refunded)
3.	Equity share Allotment A/c		40,000	-
	To Equity Share Capital A/c		-	40,000
	(Being allotment money on 1,000 equity shares @ ₹ 40 per share due)
4.	Bank A/c		40,000	-
	To Equity Share Allotment A/c		-	40,000
	(Being allotment money on 1,000 equity shares @ ₹ 40 per share received)
5.	Equity share First and Final call A/c		30,000	-
	To Equity Share Capital A/c		-	30,000
	(Being Equity share first and final call on 1,000 equity shares @ ₹ 30 per share due)
6.	Bank A/c		30,000	-
	To Equity share First and Final call A/c		-	30,000
	(Being equity share first and final call money on 1,000 equity shares @ ₹ 30 per share received)
	Total		2,12,000	2,12,000