Question

Pavitra Co. Ltd. issued ₹ 20,00,000 capital divided into equity shares of ₹ 100 each at a premium of ₹ 20 per share.

Amount payable as:

₹ 20 on Application

₹ 40 on Allotment (including 10 premium)

₹ 60 on First and Final call (including ₹10 premium)

Company received applications for all shares. All the money due on allotment and first and final call was duly received.

Pass Journal Entries in the books of Pavitra Co. Ltd.

Answer 1

Journal Entries in the books of Pavitra Co. Ltd.
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Bank A/c   ...Dr.		4,00,000	-
	To Equity Share Application A/c		-	4,00,000
	(Being application money received for 20,000 shares @ ₹ 20 each)
2.	Equity Share Application A/c   ...Dr.		4,00,000	-
	To Equity Share Capital A/c		-	4,00,000
	(Being application money transferred to Share Capital A/c)
3.	Equity Share Allotment A/c   ...Dr.		8,00,000	-
	To Equity Share Capital A/c (20,000 × 30)		-	6,00,000
	To Securities Premium A/c (20,000 × 10)		-	2,00,000
	(Being allotment money due, including premium)
4.	Bank A/c   ...Dr.		8,00,000	-
	To Equity Share Allotment A/c		-	8,00,000
	(Being allotment money received in full)
5.	Equity Share First and Final Call A/c   ...Dr.		12,00,000	-
	To Equity Share Capital A/c (20,000 × 50)		-	10,00,000
	To Securities Premium A/c (20,000 × 50)		-	2,00,000
	(Being called money due, including premium)
6.	Bank A/c   ...Dr.		12,00,000	-
	To Equity Share First and Final Call A/c		-	12,00,000
	(Being called money received in full)