Question

On April 01, 2019, a limited company was incorporated with an authorised capital of Rs. 40,000 divided into shares of Rs. 10 each. It was offered to the public for subscription of 3,000 shares payable as follows:

On Application	Rs. 3 per share
On Allotment	Rs. 2 per share
On First Call (One month after allotment)	Rs. 2.50 per share
On Second and Final Call	Rs. 2.50 per share

The shares were fully subscribed for by the public, and application money was duly received on April 15, 2019. The directors made the allotment on May 1, 2015.

How will you record the share capital transactions in the books of a company if the amounts due have been duly received, and the company maintains the combined account for application and allotment?

Answer 1

Journal Entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
2019
Apr 15	Bank A/c   ...Dr.		9,000	-
	To Share Application & Allotment A/c		-	9,000
	(Being application money received on 3,000 shares @ Rs. 3 per share)
May 01	Share Application & Allotment A/c   ...Dr.		15,000	-
	To Share Capital A/c		-	15,000
	(Being application money transferred and allotment money made due on 3,000 shares @ Rs. 5 per share)
May 01	Bank A/c   ...Dr.		6,000	-
	To Share Application & Allotment A/c		-	6,000
	(Being allotment money received on 3,000 shares @ Rs. 2 per share)
Jun 01	Share First Call A/c   ...Dr.		7,500	-
	To Share Capital A/c		-	7,500
	(Being the first call money due on 3,000 shares @ Rs. 2.50 per share)
Jun 01	Bank A/c   ...Dr.		7,500	-
	To Share First Call A/c		-	7,500
	(Being the first call money received)
Jun 01	Share Second & Final Call A/c   ...Dr.		7,500	-
	To Share Capital A/c		-	7,500
	(Being the second and final call money due on 3,000 shares @ Rs. 2.50 per share)
Jun 01	Bank A/c   ...Dr.		7,500	-
	To Share Second & Final Call A/c		-	7,500
	(Being the second and final call money received)