Question

Issue of Shares at Par
Q. 5. Rama Co. issued 50,000 shares of 10 each payable as follows:
3 on Application;
3 on Allotment
2 on First Call;
2 on Final Call.
All the shares were subscribed and allotted. Give Journal entries and show the
Share Capital in the Balance Sheet assuming that all sums have been duly received.
Expenses on issue of shares amounted to
10,000.​

Answer 1

Answer:

bank AC Dr 150000

to share application AC 150000

share application AC Dr 150000

to share capital AC 1500008

share allotment AC Dr 150000

to share capital AC 150000

bank AC Dr 150000

to share allotment AC 150000

share first call AC Dr 100000

to share capital AC 100000

bank AC Dr 100000

to share first call AC 100000

share second call AC Dr 100000

to share second call 100000

expenses on issue of share AC Dr 10000

to cash AC 10000