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Question
Shiva Ltd . issued 1,00,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share . The whole amount was payable on application. The issue was fully subscribed . Pass necessary Journal entries.
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Solution
Issued 1,00,000 equity shares of Rs 10 each at a premium of Rs 5
Applied 1,00,000 shares
Books of Shiva Limited
Journal
|
Date |
Particulars |
L.F. |
Debit |
Credit |
|
|
|
Bank A/c |
Dr. |
|
15,00,000 |
|
|
|
To Equity Share Application and Allotment A/c |
|
|
15,00,000 |
|
|
|
(Share application and allotment money received for 1,00,000 Shares at Rs 15 each including Rs 5 premium) |
|
|
|
|
|
|
Equity Share Application and Allotment A/c |
Dr. |
|
15,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
10,00,000 |
|
|
|
To Securities Premium A/c |
|
|
5,00,000 |
|
|
|
(Application and allotment money of 1,00,000 shares transferred to Equity Share Capital Account at Rs 10 each and Securities Premium at Rs 5 each) |
|
|
|
|
