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Question
Progress Ltd. issued 50,000 ordinary shares of ₹ 10 each, payable ₹ 2 on the application, ₹ 4 on allotment ₹ 2 on first call and ₹ 2 on final call. All the shares are subscribed and the amount was duly received. Pass journal entries.
Solution
| Date | Particulars | L.F. | Debit ₹ | Credit ₹ |
| 1 | Bank A/c (50,000 x Rs. 2) Dr. To Equity share application A/c [Application money received] |
1,00,00 | 1,00,000 | |
| 2 | Equity share application A/c Dr. To Equity share capital A/c [Application money transferred] |
1,00,000 | 1,00,000 | |
| 3 | Equity share allotment A/c (50,000 x Rs. 4) Dr. To Equity share capital A/c [Allotment money due] |
2,00,000 | 2,00,000 | |
| 4 | Bank A/c Dr. To Equity share allotment A/c [allotment money received] |
2,00,000 | 2,00,000 | |
| 5 | Equity share I call A/c (50,000 x Rs. 2) Dr. To Equity share capital A/c [I call money duel |
1,00,000 | 1,00,000 | |
| 6 | Bank A/c Dr. To Equity share I call A/c [share I call money received] |
1,00,000 | 1,00,000 | |
| 7 | Equity share II & final call A/c Dr. (50,000 x Rs. 2) To Equity share capital A/c [II & final call money due] |
1,00,000 | 1,00,000 | |
| 8 | Bank A/c Dr. To Equity share II & final call A/c [II & final call money received] |
1,00,000 | 1,00,000 |
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