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Question
Lalitha Ltd. offered 30,000 equity shares ₹10 each to the public payable ₹ 2 per share on the application, ₹ 3 on share allotment, and the balance when required. Applications for 50,0 shares were received on which directors allotted as:
Applicants for 10,000 shares Full
Applicants for 35,000 shares 20,000 shares (excess money will be utilized for allotment
Applicants for 5,000 shares Nil
All the money due was received. Pass journal entries upto the receipt of allotment.
Solution
| Date | Particulars | L.F. | Debit Rs. | Credit Rs. |
| (1) | Bank A/c (50,000 x Rs, 2) Dr. To Equity share application A/c [Application money received on 50,000 share] |
1,00,000 | 1,00,000 | |
| (2) | Share Application A/c (30,000 x Rs.2) Dr. To Share capital A/c [Application money transferred] |
60,000 | 60,000 | |
| (3) | Equity Share Application A/c (15,000 x Rs.2) Dr. To Equity share allotment A/c [Excess application money adjusted towards allotment] |
30,000 | 30,000 | |
| (4) | Equity share application A/c (5000 x Rs.2) Dr. To Bank A/c [Refund on rejected application made] |
10,000 | 10,000 | |
| (5) | Equity share allotment A/c (30,000 x Rs.3) Dr. To Equity share capital A/c [allotment money due] |
90,000 | 90,000 | |
| (6) | Bank A/c Dr. To Equity share allotment A/c [Balance allotment money received] |
60,000 | 60,000 |
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