Question

A company issued 5000 share at RS. 10 at a discount of 10 %
Share were issued to the public in the following manner
On share application RS. 2 per share
On allotment RS. 2 per share
On first & final call RS. 5 per share
Give journal entries

Answer 1

Answer:yes

Explanation: make a compound entry

Bank account 45000₹

Discount account 5000₹

To Application account 10000

To Allotment account 10000₹

To First and final call account 25000₹

Then transfer this to equity account

Application and allotment account 20000₹

First and final call account 25000₹

Discount account 5000₹

To share holders equity account 50000₹