Question

Minakshi Ltd. issued 12,000 equity shares of Rs. 10 each. Payable as Rs. 4 on
application and balance amount due in allotment. All money duly received. Pass
necessary journal entries.
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Answer 1

Journal entry in the books of Minakshi Ltd.

Explanation:

All the shares were fully subscribed and fully received.

Following is the Journal entry in the books of Minakshi Ltd.

1. Money on application =12,000 shares x Rs. 4 = 48,000

2. Money on Allotment =12,000 Shares x  Rs .6 = 72,000