Maharashtra State BoardHSC Commerce 12th Board Exam
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Show the Journal of the Company Assuming that All Money Received on Allotment and Calls. - Book Keeping and Accountancy

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Journal Entry

(Issue at discount and Pro-rate allotment)
Global IT Ltd. issued 1,00,000 shares of 10 each at a discount of 10% payable as follows-

On Application Rs 3 On Allotment Rs 3 (Discount)
On First Call Rs 2 On Second Call Rs 1

Public applied for 1,20,000 shares and the directors made pro-rata allotment to the applicants.
Show the journal of the company assuming that all money received on allotment and calls.

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Share Applied Shares Allotted
1,20,000 1,00,000

                                        Books of Global IT Ltd.
                                              Journal Entry

Date Particulars L.F. Debit Amount (Rs.) Credit Amount (Rs.)

Bank A/c                                Dr
  To Share Application A/c
(Share Application received on 120,000 shares of Rs. 3 each)

  360,000 360,000

Share Application A/c          Dr.
   To Share Capital A/c 
   To Share Allotment A/c
(Share application transferred to share allotment and share on 20,000 share adjusted on share Allotment)

  360,000 300,000
  Share Allotment A/c             Dr.
Discount A/c                         Dr.
   To Share Capital A/c
(Share allotment due on 100,000 shares of Rs. 3 each, issued at discount of 10%)
  Bank A/c (300,000 - 60,000)   Dr.
    To Share Allotment A/c
(Share application received)
  240,000 240,000
  Share First Call A/c               Dr.
  To Share Capital A/c
(Share first call due on 100,000 shares of Rs.2 each)
  200,000 200,000

Bank A/c                                Dr.
   To Share First Call A/c
(Share first call received)

  200,000 200,000
  Share Final Call A/c                Dr.
  To Share Capital A/c
(Share final call due on 1,00,000 shares of Rs 1 each)
  100,000 100,000
  Bank A/c                                   Dr.
     To Share Final Call A/c
(Share first call received)
  100,000 100,000

Working Notes:
Money received on Application (1,20,000×3)    =   360,000
Less: Application money transferred
to Share Capital 1,00,000×3                              =    300,000    
Excess money on application                            =    60,000       

Allotment due on 1,00,000 Shares × Rs 3        =     300,0000
Less: Adjustment of excess money
on application                                                  =     60,000       
Share Allotment Received                               =    240,000       

Concept: Issue at Par and Premium and at Discount
  Is there an error in this question or solution?
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Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 10 Company Accounts Part - 1 (Accounting for Shares)
Exercise | Q 7 | Page 353
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