Question

Petrol Chemical Ltd. issued 30,000 equity shares to the public. The price of each share was
payable as follows : 2 on application, 3 on allotment, 5 on first and final call.
All shares were fully subscribed by public. All amount due from the shareholders was
received, but one shareholder holding 500 shares did not pay the first and final call.
Show necessary journal entries to record the above transactions in the books of the company​

Answer 1

Answer:

1)Banks/c-d 60000

to share application account 60000

equity share application acoount 60000

to share capital account 60000

2)equity share allotment account 90000

To share capital account 90000

Bank account -dr 90000

to share allotment account 90000

3) equity share1st nd final account 150000

To share capital account150000

Bank account 147500

call in arrears 2500

To share 1st nd 2 ND call account 150000