Question

Pushkar Ltd. invited applications for issuing 500000 equity shares of ₹10 each at a premium of ₹3 per share. The whole amount was payable on application. The issue was fully subscribed.
Pass necessary journal entries.

Answer 1

bank account debit 65 lakh to equity share application account 65 lakh
equity share application account debit 65 lakh to equity share capital account 50 lakh to security premium account 15 lakh

Answer 2

Question :-

• Pushkar Ltd. invited applications for issuing 500000 equity shares of ₹10 each at a premium of ₹3 per share. The whole amount was payable on application. The issue was fully subscribed. Pass necessary journal entries.

Solution :-

Bank A/C (5,00,000×13) Dr 65,00,000

To share App & Allot A/C 65,00,000

(Share App money received)

Share App & Allot A/C Dr 65,00,000

To shareCapital) A/C 50,00,000

(5,00,000×10)

To security Premium Reserve 15,00,000

(5,00,000×3)

(Application money transferred)