Question

Ken Ltd. issued 40,000 shares of ₹10 each payable ₹2 on application, ₹3 on allotment, ₹3 on First call and ₹2 on final call. All the Shares are subscribed and alloted and all the sum due is duly received. Expenses on issue of share amounted to ₹10,000. Pass Journal Entries And prepare ledger.​

Answer 1

Explanation:

1. Bank A/C -------------Dr (40,000×2)

To Share Application A/C

2. Share Application A/C -------------Dr (40,000×2)

To Share Capital A/C

3. Share Allotment A/C -----------Dr (40,000×3)

To Share Capital A/C

4. Bank A/C -------------Dr (40,000×3)

To Share Allotment A/C

5. Share First Call A/C -----------Dr (40,000×3)

To Share Capital A/C

6. Bank A/C -------------Dr (40,000×3)

To Share First Call A/C

7. Share Final Call A/C -----------Dr (40,000×2)

To Share Capital A/C

8. Bank A/C -----------Dr (40,000×2)

To Share Final Call A/C

9. Issue of Share expenses A/C-------------Dr

To Bank A/C

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