Question

Light Lamps Ltd. issued 50,000 shares of ₹ 10 each as fully paid-up to the promoters for their services to set-up the company . It also issued 2,000 shares of ₹ 10 each  credited as fully paid-up to the underwriters of shares for their services . journalise these transactions.

Answer 1

Journal

Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Incorporation Expenses A/c	Dr.		5,00,000
	To Share Capital A/c (50,000××10)				5,00,000
	(Shares issued to promoters)
	Underwriting Commission A/c	Dr.		20,000
	To Underwriters’ A/c				20,000
	(Underwriting commission due)
	Underwriters’ A/c	Dr.		20,000
	To Share Capital A/c (2,000××10)				20,000
	(Shares issued to underwriters)