Question

Lalitha Ltd. offered 30,000 equity shares ₹10 each to the public payable ₹ 2 per share on the application, ₹ 3 on share allotment, and the balance when required. Applications for 50,0 shares were received on which directors allotted as:
Applicants for 10,000 shares Full
Applicants for 35,000 shares 20,000 shares (excess money will be utilized for allotment
Applicants for 5,000 shares Nil
All the money due was received. Pass journal entries upto the receipt of allotment.

Answer 1

Date	Particulars	L.F.	Debit Rs.	Credit Rs.
(1)	Bank A/c (50,000 x Rs, 2)  Dr.   To Equity share application A/c [Application money received on 50,000 share]		1,00,000	1,00,000
(2)	Share Application A/c (30,000 x Rs.2)   Dr.   To Share capital A/c [Application money transferred]		60,000	60,000
(3)	Equity Share Application A/c (15,000 x Rs.2)  Dr.    To Equity share allotment A/c [Excess application money adjusted towards allotment]		30,000	30,000
(4)	Equity share application A/c (5000 x Rs.2)   Dr.      To Bank A/c [Refund on rejected application made]		10,000	10,000
(5)	Equity share allotment A/c (30,000 x Rs.3)  Dr.     To Equity share capital A/c [allotment money due]		90,000	90,000
(6)	Bank A/c  Dr.   To Equity share allotment A/c [Balance allotment money received]		60,000	60,000