Question

X ltd issued 2 lakh equity shares of rs.10 @ rs.12 per share.Terms pf payment being Rs.2 on application, rs.5 on allotment (including premium), rs.3 on first call and rs.2 on second call.

Answer 1

Journal entries in the books of X Ltd.

Share application a/c Dr 400000
(200000*2)

To Equity Share capital a/c 400000




Bank a/c Dr. 400000

To share application a/c. 40000




Share allotment a/c Dr 1000000
(200000*5)

To securities premium a/c. 400000
(200000*2)
To Equity share capital a/c 600000




Bank a/c Dr. 1000000
To Share allotment a/c. 1000000



Share First call a/c Dr. 600000
(200000*3)
To Equity share capital a/c. 600000



Bank a/c. Dr. 600000
To share first call a/c. 600000



Share Second Call a/c Dr 400000
(200000*2)
To Equity share capital a/c. 400000



Bank a/c. Dr. 400000
To Share Second Call a/c. 400000