A company issued 10,000 shares of Rs 10 each at par ; Rs3 on application ; Rs 3 on allotment ; Rs4 on First & Final call . One shareholder holding 1,000 shares paid the entire amount of his shares with application . Calculate amount received on application :
Answers
9000× 3
+
1000×10
= 37000
The company issued 10,000 shares of Rs.10 each
On Application, company received the below amount
On 9,000 shares Rs. 3 per share was received = Rs. 27,000
On 1,000 shares Rs. 10 per share was received = Rs. 10,000
So total amount received on Share Application was
= 27,000 + 10,000
= 37,000
The journal entry for this would be
On Application
Bank A/c Dr. 37,000
To Share Application A/c 37,000
(Being Application money received in excess by Rs. 7,000)
Share Application A/c Dr. 37,000
To Share Capital A/c 30,000
Share Allotment A/c Dr. 3,000
Share First & Final call A/c Dr. 4,000
(Being Application money received adjusted to capital allotment and call account)
On Allotment
Share Allotment A/c Dr. 30,000
To Share Capital A/c 30,000
(Being Share allotment money due adjusted to share capital at 3 per share for 10,000 shares)
Bank A/c Dr. 27,000
To Share Allotment A/c 27,000
(Being Share allotment money received after adjusting advance for 1000 shares)
On First & Final call
Share First & Final call A/c Dr. 40,000
To Share Capital A/c 40,000
(Being Share First & Final call money due adjusted to share capital at 4 per share for 10,000 shares)
Bank A/c Dr. 36,000
To Share First & Final call A/c 36,000
(Being Share First & Final call money received after adjusting advance for 1000 shares)