Question

Alankrit Ltd. offered for public 10,000 equity shares of ₹ 10 each at a premium of ₹ 12/- per share payable as under:

1. On Application -  ₹ 4
2. On Allotment - ₹ 4 (including premium)
3. On First & Final Call- Balance Amount

Company received all the money. The issue was fully subscribed. Give Journal Entries to record above transactions and also show in balance sheet.

Answer 1

In the books of Alankrit Ltd.
Date	Particular	L.F.	Amount Dr. (₹)	Amount Cr. (₹)
1	Bank A/c   ...Dr.		40,000	-
	To Equity Share Application A/c		-	40,000
	(Being Application money on 10,000 Equity Shares @ ₹ 4 per Share received)
2	Equity Share Application  ...Dr.		40,000	-
	To Equity Share Capital A/c		-	40,000
	(Being Application money on 10,000 Equity Shares @ ₹ 4 per share transferred to Preference Share Capital)
3	Equity Share Allotment A/c      ...Dr.		40,000	-
	To Equity Share Capital A/c		-	20,000
	To Share Premium A/c		-	20,000
	(Being Allotment money on 10,000 equity shares @  ₹ 4 per Share due)
4	Bank A/c   ...Dr.		40,000	-
	To Equity Share Allotment A/c		-	40,000
	(Being Allotment money on 10,000 equity shares @ ₹ 4 per Share received)
5	Equity Share First & Final Call A/c   ...Dr.		40,000	-
	To Equity Share Capital A/c		-	40,000
	(Being Equity Share first & Final Call money on 10,000 Equity shares @ ₹ 4 per share due)
6	Bank A/c   ...Dr.		40,000	-
	To Equity Share First & Final Call A/c		-	40,000
	(Being Equity Share First & Final Call money on 10,000 equity Shares @ ₹ 4 per share received)

 

Balance Sheet of Alankrit Ltd.
Liabilities	Amount (₹)	Assets	Amount (₹)
Share Capital 10,000 Equity Share of ₹ 10 each	1,00,000	Bank	1,20,000
Share Premium	20,000
	1,20,000		1,20,000