Question

Shiva Ltd . issued 1,00,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share . The whole amount was payable on application. The issue was fully subscribed . Pass necessary Journal entries.

Answer 1

Issued 1,00,000 equity shares of Rs 10 each at a premium of Rs 5
Applied 1,00,000 shares

Books of Shiva Limited
Journal

Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		15,00,000
	To Equity Share Application and Allotment A/c				15,00,000
	(Share application and allotment money received for 1,00,000 Shares at Rs 15 each including Rs 5 premium)
	Equity Share Application and Allotment A/c	Dr.		15,00,000
	To Equity Share Capital A/c				10,00,000
	To Securities Premium A/c				5,00,000
	(Application and allotment money of 1,00,000 shares transferred to Equity Share Capital Account at Rs 10 each and Securities Premium at Rs 5 each)