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Question
The authorised capital of ₹ 16,00,000 of Bharat Ltd. is divide into 1,60,000 Equity Shares of ₹ 10 each. Out of these shares, 80,000 Equity Shares were issued at par to public for subscription. The full nominal value is payable on application. All the shares were subscribed by the public and total amount was paid for. Pass necessary journal entries in the books of the company.
Solution
Authorised Capital 1,60,000 equity shares of ₹ 10 each
Issued and Subscribed Capital 80,000 equity shares
Books of Bharat Limited
Journal
|
Date |
Particulars |
L.F. |
Debit |
Credit |
|
|
|
Bank A/c Dr. |
|
8,00,000 |
|
|
|
|
To Equity Share Application A/c |
|
|
8,00,000 |
|
|
|
(Share application money received for 80,000 Equity Shares of ₹ 10 each) |
|
|
|
|
|
|
Equity Share Application A/c Dr. |
|
8,00,000 |
|
|
|
|
To Equity Share Capital A/c |
|
|
8,00,000 |
|
|
|
(Share application of 80,000 shares of ₹ 10 each transferred to Equity Share Capital Accounts) |
|
|
|
|
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