Question

A company issued 1000 equity shares of rupees 250 each at a discount of 10% for its working capital give the journal entry for issues of shares

Answer 1

Answer:

Bank a/c                                                     Dr ₹2,25,000

 To Equity Share Application & Allotment a/c   ₹2,25,000

(Being equity share application and allotment money received at a lump sum)

Equity Share Application & Allotment a/c   Dr ₹2,25,000

Discount on issue of Shares a/c                 Dr ₹25,000

 To Equity Share Capital a/c                             ₹2,50,000

(Being equity share application and allotment money on 1000 shares @225 including ₹25 as discount transferred to equity share capital a/c as per Board's Resolution No....Dated.....)

Explanation:

Discount per share = ₹250*10/100

                              = ₹25

Issue price = ₹250 - ₹25 = ₹225

I hope it helps :)

Answer 2

Answer:

Bank a/c dr 225000

To equity share application and allotment 225000

Equity share application and allotment dr 225000

Discount on issue of share dr 25000

To share capital 250000

Explanation:

In this sum nothing is mentioned about the price of application, allotment,calls seperately

So we can treat as all payment made

Here 10 % discount

Generally discount and premium are taken in allotment but here all no separate payment of allotment so we treat discount was Given in applications

Hope this will help to u