Question

Tara Ltd. Was formed with an authorised capital of Rs.40,00,000 divided into 4,00,000 shares of Rs.10 each. 4 The company issued 1,00,000 shares at par. The issue price was payable as follows:
On Application – Rs.3 per share
On Allotment – Rs.5 Per share
On Final Call – Rs.2 per share

Answer 1

1) Bank a/c dr 300000
To share application a/c. 300000
( being share application received on 100000shares @ 3 )
2) share application. A/c dr 300000
To share capital A/c 300000
( being share cap issued)
3) share allotmentA/c. Dr 500000
To share capital A/c. 500000
( being share cap raised by 100000@5)
4) bank A/c dr. 500000
To share allotment. 500000
( being share allotment money received)
5) share final call A/c dr. 200000
To share capital. 200000
( being share cap raised by 100000@2)
6) bank A/c. dr 200000
To share final call a/c. 200000
( being money received on share final call )