Question

Progress Ltd. issued 50,000 ordinary shares of ₹ 10 each, payable ₹ 2 on the application, ₹ 4 on allotment ₹ 2 on first call and ₹ 2 on final call. All the shares are subscribed and the amount was duly received. Pass journal entries.

Answer 1

Date	Particulars	L.F.	Debit ₹	Credit ₹
1	Bank A/c (50,000 x Rs. 2)  Dr.     To Equity share application A/c [Application money received]		1,00,00	1,00,000
2	Equity share application A/c   Dr.     To Equity share capital A/c [Application money transferred]		1,00,000	1,00,000
3	Equity share allotment A/c (50,000 x Rs. 4)  Dr.     To Equity share capital A/c [Allotment money due]		2,00,000	2,00,000
4	Bank A/c   Dr.      To Equity share allotment A/c [allotment money received]		2,00,000	2,00,000
5	Equity share I call A/c (50,000 x Rs. 2)  Dr.     To Equity share capital A/c   [I call money duel		1,00,000	1,00,000
6	Bank A/c  Dr.     To Equity share I call A/c [share I call money received]		1,00,000	1,00,000
7	Equity share II & final call A/c    Dr. (50,000 x Rs. 2)     To Equity share capital A/c [II & final call money due]		1,00,000	1,00,000
8	Bank A/c   Dr.     To Equity share II & final call A/c [II & final call money received]		1,00,000	1,00,000