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Question
Saranya Ltd. issued 20,000 equity shares of ₹ 10 each to the public at par. The details of the amount payable on the shares are as follows:
On application – ₹ 3 per share
On allotment – ₹ 4 per share
On first and final call – ₹ 3 per share
Application money was received on 30,000 shares. Excess application money was refunded immediately. Pass journal entries to record the above.
Solution
| Date | Particulars | L.F. | Debit Rs. | Credit Rs. |
| (1) | Bank A/c (30,000 x Rs. 3) Dr. To Equity share application A/c [Application money received on 30,000 share] |
90,000 | 90,000 | |
| (2) | Equity share Application A/c Dr. To Equity share capital A/c (20,000 x Rs.3) To Bank A/c (10,000 x Rs. 3) [Application money transfer'red & refund on excess application] |
90,000 | 60,000 30,000 |
|
| (3) | Equity share Allotment x Rs.3) Dr. To Equity share Capital A/c [Allotment money duel |
80,000 | 80,000 | |
| (4) | Bank A/c Dr. To Equity share Allotment A/c [Allotment money received] |
80000 | 80,000 | |
| (5) | Equity share I&final call Dr. To Share Capital A/c [call money due] |
60,000 | 60,000 | |
| (6) | Bank A/c Dr. To Equity share I & final call A/c [call money received] |
60,000 | 60,000 |
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