Question

Saranya Ltd. issued 20,000 equity shares of ₹ 10 each to the public at par. The details of the amount payable on the shares are as follows:
On application – ₹ 3 per share
On allotment – ₹ 4 per share
On first and final call – ₹ 3 per share
Application money was received on 30,000 shares. Excess application money was refunded immediately. Pass journal entries to record the above.

Answer 1

Date	Particulars	L.F.	Debit Rs.	Credit Rs.
(1)	Bank A/c (30,000 x Rs. 3)  Dr.    To Equity share application A/c  [Application money received on 30,000 share]		90,000	90,000
(2)	Equity share Application A/c   Dr.    To Equity share capital A/c (20,000 x Rs.3)    To Bank A/c (10,000 x Rs. 3) [Application money transfer'red & refund on excess application]		90,000	60,000 30,000
(3)	Equity share Allotment x Rs.3)  Dr.         To Equity share Capital A/c  [Allotment money duel		80,000	80,000
(4)	Bank A/c  Dr.     To Equity share Allotment A/c  [Allotment money received]		80000	80,000
(5)	Equity share I&final call   Dr.     To Share Capital A/c [call money due]		60,000	60,000
(6)	Bank A/c  Dr.   To Equity share I & final call A/c [call money received]		60,000	60,000