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Question
Sampath company issued 25,000 shares at ₹ 10 per share payable ₹ 3 on the application, ₹ 4 on allotment; ₹ 3 on first and final call. The public subscribed for 24,000 shares. The directors allotted all the 24,000 shares and received the money duly. Pass necessary journal entries.
Solution
| Date | Particulars | L.F. | Debit | Credit |
| 1. | Bank A/c (24,000 x Rs. 3) Dr. To Share Application A/c [Application money received] |
72,000 | 72,000 | |
| 2. | Share Application A/c Dr. To Share capital A/c [Application money transferred] |
72,000 | 72,000 | |
| 3. | Share Allotment A/c (24,000 x Rs. 4) Dr. To share capital A/c [Allotment money duel |
96,000 | 96,000 | |
| 4. | Bank A/c Dr. To Share Allotment A/c [share allotment money received] |
96,000 | 96,000 | |
| 5. | Share 1 & final call A/c (24,000 x Rs.3) Dr. To Share Capital A/c [call money due] |
72,000 | 72,000 | |
| 6. | Bank A/c Dr. To share I & final call A/c [call money received] |
72,000 | 72,000 |
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