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Question
Light Lamps Ltd. issued 50,000 shares of ₹ 10 each as fully paid-up to the promoters for their services to set-up the company . It also issued 2,000 shares of ₹ 10 each credited as fully paid-up to the underwriters of shares for their services . journalise these transactions.
Solution
Journal
|
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
Incorporation Expenses A/c |
Dr. |
|
5,00,000 |
|
|
|
To Share Capital A/c (50,000×10) |
|
|
|
5,00,000 |
|
|
(Shares issued to promoters) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting Commission A/c |
Dr. |
|
20,000 |
|
|
|
To Underwriters’ A/c |
|
|
|
20,000 |
|
|
(Underwriting commission due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriters’ A/c |
Dr. |
|
20,000 |
|
|
|
To Share Capital A/c (2,000×10) |
|
|
|
20,000 |
|
|
(Shares issued to underwriters) |
|
|
|
|
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|
|
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|
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|
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|
|
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|
|
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