Journal Entries for Issuance of Equity Shares

1. Journal Entry for Receipt of Application Money

Date Account Debit Credit
(dd/mm/yyyy) (Account Name) (Amount) (Amount)

dd/mm/yyyy Bank Account xxx

To Share Application Account xxx

2. Journal Entry for Allotment of Shares

Date Account Debit Credit
(dd/mm/yyyy) (Account Name) (Amount) (Amount)

dd/mm/yyyy Share Application Account xxx

To Share Capital Account xxx

3. Journal Entry for First Call Money Received

Date Account Debit Credit
(dd/mm/yyyy) (Account Name) (Amount) (Amount)

dd/mm/yyyy Bank Account xxx

To Share First Call Account xxx

4. Journal Entry for Second Call Money Received

Date Account Debit Credit
(dd/mm/yyyy) (Account Name) (Amount) (Amount)

dd/mm/yyyy Bank Account xxx

To Share Second Call Account xxx

5. Journal Entry for Final Call Money Received

Date Account Debit Credit
(dd/mm/yyyy) (Account Name) (Amount) (Amount)

dd/mm/yyyy Bank Account xxx

To Share Final Call Account xxx

Explanation:

1. The first journal entry is made when the company receives the application money from the public. The application money is recorded as a debit in the Bank Account and as a credit in the Share Application Account. This entry reflects the inflow of funds from the public.

2. The second journal entry is made when the company allots shares to the applicants. The amount received from the applicants is transferred from the Share Application Account to the Share Capital Account. This entry reflects the issuance of shares and the increase in the company's equity.

3. The third journal entry is made when the company receives the first call money on allotted shares. The amount received is debited to the Bank Account and credited to the Share First Call Account. This entry reflects the receipt of funds from the shareholders for the first call.

4. The fourth journal entry is made when the company receives the second call money on allotted shares. The amount received is debited to the Bank Account and credited to the Share Second Call Account. This entry reflects the receipt of funds from the shareholders for the second call.

5. The fifth journal entry is made when the company receives the final call money on allotted shares. The amount received is debited to the Bank Account and credited to the Share Final Call Account. This entry reflects the receipt of funds from the shareholders for the final call.

Note: The journal entries provided above assume that all the shares were fully subscribed and allotted. If there were any unallotted shares or shares forfeited due to non-payment, additional journal entries would be required to account for those transactions.