Question

Mahalaxmi Ltd. issued 25,000 equity shares of ₹ 100 each payable as under:

₹ 20 on Application

₹ 30 on Allotment

₹ 20 on First call

₹30 on Second and Final Call.

Applications were received for 29,000 equity shares. The excess application money was adjusted towards allotment.

All the money was duly received except second and final call on 1,000 equity shares.

Pass necessary journal entries in the books of Mahalaxmi Ltd.

Answer 1

In the books of Mahalaxmi Limited Journal Entries
Date	Particulars	L.F.	Debit Amount (₹)	Credit Amount (₹)
1	Bank A/c   ...Dr.		5,80,000
	To Equity Share Application A/c			5,80,000
	(Being equity share application money on 29,000 shares @ ₹ 20 per share received)
2	Equity Share Application A/c   ...Dr.		5,80,000
	To Equity Share Capital A/c			5,00,000
	To Equity Share Allotment A/c			80,000
	(Being Equity Share application money transferred to equity share capital and excess application money adjusted towards allotment)
3	Equity Share Allotment A/c   ...Dr.		7,50,000
	To Equity Share Capital A/c			7,50,000
	(Being allotment money on 25,000 equity shares @ ₹ 30 per share due)
4	Bank A/c   ...Dr.		6,70,000
	Equity share Application A/c   ...Dr.		80,000
	To Equity Share Allotment A/c			7,50,000
	(Being due allotment money, after adjusting allotment, money, received)
5	Equity Share First Call A/c   ...Dr.		5,00,000
	To Equity Share Capital A/c			5,00,000
	(Being first call money on 25,000 equity shares @ ₹ 20 per share due)
6	Bank A/c   ...Dr.		5,00,000
	To Equity Share first call A/c			5,00,000
	(Being equity share first call money on 25,000 shares @ ₹ 20 per share received)
7	Equity Share second and final call A/c   ...Dr.		7,50,000
	To Equity Share capital A/c			7,50,000
	(Being second and final call money on 25,000 equity shares @ ₹ 30 per share due)
8	Bank A/c   ...Dr.		7,20,000
	Call-in-arrears A/c (1000 × 30)   ...Dr.		30,000
	To Equity Share second and Final call A/c			7,50,000
	(Being equity share second and final call money on 24,000 share @ ₹ 30 per share received)
	Total		51,60,000	51,60,000