Question

Mohit Glass Ltd. issued 20,000 shares of Rs 100 each at Rs 110 per share, payable Rs 30 on application, Rs 40 on allotment (including Premium), Rs 20 on first call and Rs 20 on final call. The applications were received for 24,000 shares, allotted 20,000 shares, and rejected 4,000 shares, and the amount returned thereon. The money was duly received.

Give journal entries.

Answer 1

Journal Entries in the books of Mohit Glass Ltd.
Date	Particulars	L.F	Debit (₹)	Credit (₹)
1.	Bank A/c   ...Dr.		7,20,000	-
	To Share Application A/c		-	7,20,000
	(Application money received on an application for 24,000 shares @ Rs 30 per share)
2.	Share Application A/c   ...Dr.		7,20,000	-
	To Share Capital A/c (Bank Column)		-	6,00,000
	To Bank A/c		-	1,20,000
	(Share Application of 20,000 shares @ Rs 30 transferred to Share Capital Account and the balance returned)
3.	Share Allotment A/c  ...Dr.		8,00,000	-
	To Share Capital A/c		-	6,00,000
	To Securities premium reserve  A/c		-	2,00,000
	(Allotment money due on 20,000 shares @ 40 per share, including Rs 10 for premium)
4.	Bank A/c    ...Dr.		8,00,000	-
	To Share Allotment A/c		-	8,00,000
	(Allotment money received on 20,000 shares @ Rs 40 per share)
5.	Share First Call A/c   ...Dr.		4,00,000	-
	To Share Capital A/c		-	4,00,000
	(Share First Call money due on 20,000 shares @ Rs 20 per share)
6.	Bank A/c  ...Dr.		4,00,000	-
	To Share First Call A/c		-	4,00,000
	(Share First Call money received on 20,000 shares @ Rs 20 per share)
7.	Share Final Call A/c   ...Dr.		4,00,000	-
	To Share Capital A/c		-	4,00,000
	(Share Final Call money due on 20,000 shares @ Rs 20 per share)
8.	Bank A/c  ...Dr.		4,00,000	-
	To Share Final Call A/c		-	4,00,000
	(Share Final Call money received on 20,000 shares @ Rs 20 per share)