Question

The authorised capital of 16,00,000 of XYZ Ltd. is divided into 1,60,000 Equity Shares of 10 each. Out
of these shares, 80,000 Equity Shares were issued at par to public for subscription. The full nominal value
is payable on application. All the shares were subscribed by the public and total amount was paid for.
Pass necessary Journal entries in the books of the company.​

Answer 1

Answer:

Journal entry for subscription of shares

Bank A/c  (80,000 Shares * $10 Per share)  Dr    $800,000

        To Subscription A/c                                                            $800,000

(Being shares issued to public subscribed )

Journal entry for Issue of shares

Subscription A/c                                               Dr     $800,000

        To Share capital A/c                                                           $800,000

(Being shares issued to subscribers )

Explanation:

Answer 2

Answer:

Note:- DRAW FORMATE BY PENCIL IN YOUR EXAM DON'T USE PEN TO MAKE FORMATE and NURATIONS ARE MUST