Assam tea LID issued 100000shre of Rs 10 each at a premium of 10% payment were to be made as follows on application Rs 3on allotment rs5 including premium on first call rs3 application were received for 99000 share and all were accepted.all cash duly received expect that a holder of 500 share who Did not pay the first and final call journal entries in the company
Answers
Answer:
your numerong of shares is wrong
Bank A/c Dr. 2,97,000
To Share Application A/c 2,97,000
(Being application money on 99,000 shares @ 3 per share received)
Share Application A/c Dr. 2,97,000
To Share Capital A/c 2,97,000
(Being the transfer of application money on 99,000 shares @ 3 per share to share capital account)
Share Allotment A/c Dr. 4,95,000
To Share Capital A/c 3,96,000
To Securities Premium A/c 99,000
(Being the transfer of allotment money on 99,000 shares @ 4 per share to share capital account and Rs. 1 per share to Securities premium A/c)
Bank A/c Dr. 4,95,000
To Share Allotment A/c 4,95,000
(Being allotment money and premium money on 99,000 shares received @ 4 per share and @ 1 per share respectively)
Share first & final call A/c Dr. 2,97,000
To Share Capital A/c 2,97,000
(Being the transfer of first and final call money on 99,000 shares @ 3 per share to share capital account)
Bank A/c Dr. 2,95,500
Calls in Arrears A/c Dr 1,500
To Share first & final call A/c 2,97,000
(Being first and final call money on 98,500 shares @ 3 per share received and for 500 shares not received and posted to calls in arrears a/c)