Question

M Ltd issued a prospectus offering 10,000 equity share Rs 20 each at Rs 22 per shares, payable as follows
On application Rs 3 per share
On allotment Rs 8 per share(including premium)
On first call Rs 6 per share
On final call Rs 5 per share
Application were received for 10,000 shares and all money on allotment, first call final call were received ​

Answer 1

Journal Entry in the books of M Ltd.

Explanation:-

1. Application Money = 10,000 x 3 = 30,000

2. Share allotment Tranfer to:-

            a) Share capital = 10,000 x 6=60,000

             b) S.P.R = 10,000 X 2 = 20,000

3. Call-in-arrear = 400 Shares