Janta ltd issues application for issuing 500000 equity shares of 10 each at a premium of 4 the amount was payable as follows
Answers
The correct question is:
Janta Ltd. issued applications for 5,00,000 equity shares of * 10 each, at a premium of 4 per share. The amount was payable as follows:
On application 6 (including *2 premium), on Allotment 6 (including 2 premium) and Balance on first and final call.
Applications for 7,50,000 shares were received. Allotment was made to all the applicants on pro rata basis. Mohan to whom 1,000 shares were allotted did not pay allotment and call money. Vikram to whom 500 shares were allotted, did not pay the call money. Pass the necessary Journal entries.
Given:
issuing of equity shares = 500000
received application = 750000
application money = 6 ( including 2 premium ) each
allotment money = 6 ( including 2 premium ) each
fast and final call money = 2 each
To find:
pass the journal entries
Solution:
partuculars amount amount
Bank A/c dr. 4500000
To, share application A/c 4500000
share application A/c Dr. 4500000
To, Share Capital A/c 300000
To Securities Premium Reserve 150000
share allotment A/c dr. 3000000
To bank a/c 3000000
share allotment a/c dr. 3000000
To share capital a/c 2000000
To Securities Premium Reserve 1000000
share first and final call a/c dr. 1000000
To, bank a/c 1000000
share first ad final call a/c dr. 1000000
calls-in-arrear a/c dr. 3000
To, share capital a/c 997000
note: In a simple term, a journal entry is recording the transactions in Double Entry form that is recording in two aspects - Debit or credit.