Question

28. A limited company was registered with a nominal capital of 2,50,000 in equity shares of 10 each.
20,000 shares were issued. The share money was payable as * 2:50 on application, * 2:50 on allotment,
3 after 2 months of allotment on 1st call and the balance to be called up as and when required. The
company received application for 25,000 shares and application money on 2,000 shares was refunded.
20,000 shares were allotted amongst the applicants for 23,000 shares, excess application money being
kept for adjustment on allotment. The 1st call was made and money realised except from one shareholder
who was allotted 500 shares. Another shareholder who was allotted 1,000 shares made full payment on
his shares.
Show the necessary Journal entries to record the above transactions (including cash) and show how the
capital should appear on the Balance Sheet.
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Answer 1

Answer:

bank a/c Dr.

to share application

share application a/c Dr.

to share capital

share allotment a/c Dr.

to share capital

bank a/c Dr.

to share allotment