Question

Vivan Ltd. invited applications for 10,000 shares of ₹ 100 each payable as follows:

₹ 30 on application, ₹ 30 on allotment and balance on first and final call.

All the shares were applied and allotted and the money was duly received.

You are required to Journalise these transactions and show share capital in the Balance Sheet.

Answer 1

Journal Entries in the Books of Vivan Ltd.
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
1.	Bank A/c   ...Dr.		3,00,000
	To Shares Application A/c			3,00,000
	(Application money received on 10,000 shares @ ₹ 30 per share)
2.	Shares Application A/c   ...Dr.		3,00,000
	To Share Capital A/c			3,00,000
	(Application money transferred to Share Capital)
3.	Shares Allotment A/c   ...Dr.		3,00,000
	To Share Capital A/c			3,00,000
	(Allotment money due on 10,000 shares @ ₹ 30 per share)
4.	Bank A/c   ...Dr.		3,00,000
	To Shares Allotment A/c			3,00,000
	(Allotment money received)
5.	Shares First and Final Call A/c   ...Dr.		4,00,000
	To Share Capital A/c			4,00,000
	(First and Final Call money due on 10,000 shares @ ₹ 40 per share)
6.	Bank A/c   ...Dr.		4,00,000
	To Shares First and Final Call A/c			4,00,000
	(First and Final Call money received)

Working Note:

First and Final Call per share:

₹ 100 − ₹ 30 − ₹ 30 = ₹ 40

Total Share Capital:

10,000 × ₹ 100 = ₹ 10,00,000

Balance Sheet
Particulars	Note No.	₹
EQUITY AND LIABILITIES
Shareholders' Funds
Share Capital	1	10,00,000

 

Notes to Accounts
Particulars	₹
Note 1: Share Capital
Issued, Subscribed and Fully Paid-up Capital:
10,000 Equity Shares of ₹ 100 each	10,00,000