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Question
Sameer and Company Limited invited applications for 25,000 Equity shares of ₹ 100 each payable as:
₹ 25 on application
₹ 50 on allotment
₹ 25 on first and final call
Applications were received for 30,000 Equity shares and pro-rata allotment were made to all. All the money was duly received except first and final call on 2,500 Equity shares. Enter the above transactions in the books of Sameer and Company Limited.
Solution
| In the books of Sameer & Company limited Journal entries |
||||
| Date | Particulars | L.F | Debit (₹) | Credit (₹) |
| 1. | Bank A/c ...Dr. | 7,50,000 | - | |
| To Equity share Application A/c | - | 7,50,000 | ||
| (Being application money received) | ||||
| 2. | Equity share Application A/c ...Dr. | 7,50,000 | - | |
| To Equity Share Capital A/c | - | 6,25,000 | ||
| To Equity share Allotment A/c | - | 1,25,000 | ||
| (Being application money transferred & excess money adjusted in allotment) |
||||
| 3. | Equity share allotment A/c ..Dr. | 12,50,000 | - | |
| To Equity share capital A/c | - | 12,50,000 | ||
| (Being allotment money due) | ||||
| 4. | Bank A/c ...Dr. | 11,25,000 | - | |
| To Equity share allotment A/c | - | 11,25,000 | ||
| (Being allotment money received) | ||||
| 5. | Equity share first & final call A/c ...Dr. | 6,25,000 | - | |
| To equity share capital A/c | - | 6,25,000 | ||
| (Being first & final call money due) | ||||
| 6. | Bank A/c ...Dr. | 5,62,500 | - | |
| Calls in Arrears A/c ...Dr. | 62,500 | - | ||
| To Equity share first & final call A/c | - | 6,25,000 | ||
| (Being first & final call money received except on 2,500 equity shares) | ||||
| Total | 51,25,000 | 51,25,000 | ||
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