Pluto ltd. Issued 20000 equity shares of rupees 10 Each,payable as follows:
Application rs4,allotment rs1,1st call rs3,2nd n final call rs2.
Application were received for 30000 shares and pro rata allotment was made to all applicants. Excess money received on application was utilised towards allotment and subsequent calls.
Answers
Answer:
Explanation:
Journal entries
Date Particulars L.F. Debit Am. Credit Am.
1. Bank A/C Dr. 1,20,000
To Equity Share Application A/C 1,20,000
(Being Share Application Received)
2. Share Application A/c Dr. 80,000
To Share Capital A/c 80,000
( Being application money transfer
to share capital )
3. Equity Share Application A/c Dr. 40,000
To Allotment A/c 10,000
To share 1st Call A/c 10,000
To share 2nd Call A/c 20,000
( Being Balance of application
transfer to allotment, 1st call,
2nd call )
3. Share Allotment A/c Dr. 20,000
To Share Capital A/c 20,000
(Being allotment money transfer
to share capital )
4. Bank A/c Dr. 10,000
To share Allotment A/c 10,000
( Being Allotment money received)
5. Share 1st call A/c Dr. 60,000
To Share Capital A/c 60,000
( Being 1st call Transfer to share
capital )
6. Bank A/c Dr. 50,000
To share 1st Call A/c 50,000
( Being 1st call received )
7. Share 2nd Call A/c Dr. 40,000
To Share Capital A/c 40,000
( Being 2nd call transfer to share
capital )
8. Bank A/c Dr. 20,000
To Share 2nd Call A/c 20,000
( Being 2nd call received )