Question

Miscellaneous and Boards' Questions
27. J. K. Ltd. invited applications for 5,00,000 shares of 10 each. Payments were to be made
as follows:
On Application
* 2
On Allotment
73
On First and Final Call
5
All the shares were applied for 8,000 fully paid shares issued to promoters for their
services. Shares issue expenses amounted to ? 16,000. Give Journal entries assuming that
(JAC. 2017
all sums due on allotment and call have been received.​

Answer 1

Answer:

bank account. dr. 1000000

To share application account 1000000

share application account. dr 1000000

To share capital account. 1000000

share allotment account. dr 1500000

To share capital account. 1500000

bank account. dr 1500000

To share allotment account 1500000

share final call. dr 2500000

To share capital account 2500000

bank account dr 2500000

To share final call 2500000

incorporation cost account dr 80000

To share capital. 80000

share issue expense dr 16000

Tobank account. 16000