# Sony Media Ltd.Issued 50,000 Shares of ₹ 10 Each Payable ₹ 3 on Application , ₹ 4 on Allotment and Balance on First and Final Call . - Accountancy

Journal Entry

Sony Media Ltd.issued 50,000 shares  of ₹ 10 each payable  ₹ 3 on application , ₹ 4 on allotment and balance on first and final call . Applications were received for 1,00,000 shares and allotment was made as follows :
(i) Applicants for 60,000 shares were allotted 30,000 shares,
(ii) Applicants for 40,000 shares were allotted 20,000 shares,
Anupam to whom 1,000 shares were allotted from category
(i) failed to pay the allotment money.
Pass journal entries up to allotment .

#### Solution

Journal

 Date Particulars L.F. Debit Amount (₹) Credit Amount (₹) Bank A/c (1,00,000 × 3) Dr. 3,00,000 To Share Application A/c 3,00,000 (Received application money on 1,00,000 shares) Share Application A/c Dr. 3,00,000 To Share Capital A/c (50,000 × 3) 1,50,000 To Share Allotment A/c 1,50,000 (Transfer of application money to Share Capital) Share Allotment A/c (50,000 × 4) Dr. 2,00,000 To Share Capital A/c 2,00,000 Allotment due on 50,000 shares) Bank A/c (W.N. 1) Dr. 49,000 To Share Allotment A/c 49,000 (Allotment money received after adjustment of excess on application and arrears)

Working Notes

1) Computation of amount received on allotment:

 Allotment due (50,000 × 4) = Rs. 2,00,000 Less: Amount received on application in excess (on 50,000 shares @ Rs . 3 each) = Rs. 1,50,000 Rs. 50,000 Less: Amount due but not received on shares of Anupam 1,000 Rs. 49,000

2)  Calculation of Amount not Received on the shares of Anupam

Shares alloted to Anupam = 1000

Shares applied by Anuoam = 1000 xx 60000/30000 = 2000

 Amount due on allotment of Anupam's Share (4 × 1,000) = 4,000 Less: Excess received on application (3 × 2,000 – 3 × 1,000) = 3,000 1,000
Is there an error in this question or solution?

#### APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 2
Chapter 1 Accounting for Share Capital
Exercise | Q 21 | Page 116