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Chaudhary ltd. invited applications for 50000 shares of 10 each payable as follows: Rs 3 on application, Rs 4 on allotment, and the balance Rs 3 on first and final call. Applications were received for 64000 shares . The directors accepted applications for 47000 shares in full, alloted 3000 shares to applicants for 12000 shares and rejected applications for 5000 shares. Application money in excess of that required on allotment could be utilized for calls. Make entries in the journal. *?
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Chaudhary ltd. invited applications for 50000 shares of 10 each payabl...
Journal Entries for Chaudhary Ltd. Shares Issuance
Application Stage:
The first stage of share issuance involves the collection of applications from potential shareholders. In this case, Chaudhary Ltd. invited applications for 50,000 shares of Rs. 10 each, payable in three installments. The journal entries for this stage are as follows:
1. Bank Account Dr. 1,92,000
Share Application Account Cr. 1,92,000
(To record the receipt of application money for 64,000 shares @ Rs. 3 per share)
Allotment Stage:
The second stage is the allotment of shares to the applicants. The company accepted applications for 47,000 shares in full, and allotted 3,000 shares to applicants for 12,000 shares. The journal entries for this stage are as follows:
1. Share Application Account Dr. 1,41,000
Share Allotment Account Cr. 1,41,000
(To record the transfer of application money to allotment account)
2. Bank Account Dr. 1,20,000
Share Allotment Account Cr. 1,20,000
(To record the receipt of allotment money for 3,000 shares @ Rs. 4 per share)
3. Share Allotment Account Dr. 3,000
Share Capital Account Cr. 3,000
(To record the allotment of shares @ Rs. 10 per share)
Call Stage:
The final stage is the call for the remaining balance on the shares. In this case, the balance amount was Rs. 3 per share. The journal entries for this stage are as follows:
1. Share First Call Account Dr. 1,41,000
Share Capital Account Cr. 1,41,000
(To record the call for the first installment)
2. Share Capital Account Dr. 1,50,000
Share First Call Account Cr. 1,50,000
(To record the receipt of first call money for 50,000 shares @ Rs. 3 per share)
3. Share Capital Account Dr. 1,41,000
Share Second Call Account Cr. 1,41,000
(To record the call for the second installment)
4. Share Capital Account Dr. 1,41,000
Share Final Call Account Cr. 1,41,000
(To record the call for the final installment)
5. Share Second Call Account Dr. 1,50,000
Share Final Call Account Cr. 1,50,000
(To record the receipt of second call money for 50,000 shares @ Rs. 3 per share)
Explanation:
The journal entries for share issuance involve the recording of various transactions at different stages of the process. In the application stage, the company receives application money from potential shareholders, which is recorded as a debit to bank account and a credit to share application account. This stage is completed when the company accepts or rejects the applications and transfers the application money to the allotment account.
In the allotment stage, the company allots shares to the applicants and receives allotment money. The transfer of application money to allotment account is recorded as a debit to share application account and a credit to share allotment
Application Stage:
The first stage of share issuance involves the collection of applications from potential shareholders. In this case, Chaudhary Ltd. invited applications for 50,000 shares of Rs. 10 each, payable in three installments. The journal entries for this stage are as follows:
1. Bank Account Dr. 1,92,000
Share Application Account Cr. 1,92,000
(To record the receipt of application money for 64,000 shares @ Rs. 3 per share)
Allotment Stage:
The second stage is the allotment of shares to the applicants. The company accepted applications for 47,000 shares in full, and allotted 3,000 shares to applicants for 12,000 shares. The journal entries for this stage are as follows:
1. Share Application Account Dr. 1,41,000
Share Allotment Account Cr. 1,41,000
(To record the transfer of application money to allotment account)
2. Bank Account Dr. 1,20,000
Share Allotment Account Cr. 1,20,000
(To record the receipt of allotment money for 3,000 shares @ Rs. 4 per share)
3. Share Allotment Account Dr. 3,000
Share Capital Account Cr. 3,000
(To record the allotment of shares @ Rs. 10 per share)
Call Stage:
The final stage is the call for the remaining balance on the shares. In this case, the balance amount was Rs. 3 per share. The journal entries for this stage are as follows:
1. Share First Call Account Dr. 1,41,000
Share Capital Account Cr. 1,41,000
(To record the call for the first installment)
2. Share Capital Account Dr. 1,50,000
Share First Call Account Cr. 1,50,000
(To record the receipt of first call money for 50,000 shares @ Rs. 3 per share)
3. Share Capital Account Dr. 1,41,000
Share Second Call Account Cr. 1,41,000
(To record the call for the second installment)
4. Share Capital Account Dr. 1,41,000
Share Final Call Account Cr. 1,41,000
(To record the call for the final installment)
5. Share Second Call Account Dr. 1,50,000
Share Final Call Account Cr. 1,50,000
(To record the receipt of second call money for 50,000 shares @ Rs. 3 per share)
Explanation:
The journal entries for share issuance involve the recording of various transactions at different stages of the process. In the application stage, the company receives application money from potential shareholders, which is recorded as a debit to bank account and a credit to share application account. This stage is completed when the company accepts or rejects the applications and transfers the application money to the allotment account.
In the allotment stage, the company allots shares to the applicants and receives allotment money. The transfer of application money to allotment account is recorded as a debit to share application account and a credit to share allotment
Community Answer
Chaudhary ltd. invited applications for 50000 shares of 10 each payabl...
Bank A c. Dr. 192000
To Share application A c. 192000
( application money received)
share Application A c. Dr. 192000
To Share Captial AC. 150000
To Share Allotment A c. 12000
To Share First call A c. 9000
To Bank A c. 21000
( excess money adjusted and refund and transfer amount in share Captial)
WORKING NOTE : -
1.
Calculation Amount of Excess Application money received for 12000 shares at ruppes 3 on Allotment!
money received on application12000×3. 36000
Actual money received 3000. × 3. 9000
Excess. = 27000
Adjusted on Allotment at rate 4 of 3000 shares = 12000
Excess = 15000
Adjusted on first call and final call money to be received -3000×3 = 9000
Money excess is now refunded.
Hence total Money Refunded = 6000 +15000 = 21,000
Total amount adjusted on Allotment is 12000
. Total Amount adjusted on first call and final call is 6000
To Share application A c. 192000
( application money received)
share Application A c. Dr. 192000
To Share Captial AC. 150000
To Share Allotment A c. 12000
To Share First call A c. 9000
To Bank A c. 21000
( excess money adjusted and refund and transfer amount in share Captial)
WORKING NOTE : -
1.
Calculation Amount of Excess Application money received for 12000 shares at ruppes 3 on Allotment!
money received on application12000×3. 36000
Actual money received 3000. × 3. 9000
Excess. = 27000
Adjusted on Allotment at rate 4 of 3000 shares = 12000
Excess = 15000
Adjusted on first call and final call money to be received -3000×3 = 9000
Money excess is now refunded.
Hence total Money Refunded = 6000 +15000 = 21,000
Total amount adjusted on Allotment is 12000
. Total Amount adjusted on first call and final call is 6000
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Chaudhary ltd. invited applications for 50000 shares of 10 each payable as follows: Rs 3 on application, Rs 4 on allotment, and the balance Rs 3 on first and final call. Applications were received for 64000 shares . The directors accepted applications for 47000 shares in full, alloted 3000 shares to applicants for 12000 shares and rejected applications for 5000 shares. Application money in excess of that required on allotment could be utilized for calls. Make entries in the journal. *?
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Chaudhary ltd. invited applications for 50000 shares of 10 each payable as follows: Rs 3 on application, Rs 4 on allotment, and the balance Rs 3 on first and final call. Applications were received for 64000 shares . The directors accepted applications for 47000 shares in full, alloted 3000 shares to applicants for 12000 shares and rejected applications for 5000 shares. Application money in excess of that required on allotment could be utilized for calls. Make entries in the journal. *? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Chaudhary ltd. invited applications for 50000 shares of 10 each payable as follows: Rs 3 on application, Rs 4 on allotment, and the balance Rs 3 on first and final call. Applications were received for 64000 shares . The directors accepted applications for 47000 shares in full, alloted 3000 shares to applicants for 12000 shares and rejected applications for 5000 shares. Application money in excess of that required on allotment could be utilized for calls. Make entries in the journal. *? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Chaudhary ltd. invited applications for 50000 shares of 10 each payable as follows: Rs 3 on application, Rs 4 on allotment, and the balance Rs 3 on first and final call. Applications were received for 64000 shares . The directors accepted applications for 47000 shares in full, alloted 3000 shares to applicants for 12000 shares and rejected applications for 5000 shares. Application money in excess of that required on allotment could be utilized for calls. Make entries in the journal. *?.
Chaudhary ltd. invited applications for 50000 shares of 10 each payable as follows: Rs 3 on application, Rs 4 on allotment, and the balance Rs 3 on first and final call. Applications were received for 64000 shares . The directors accepted applications for 47000 shares in full, alloted 3000 shares to applicants for 12000 shares and rejected applications for 5000 shares. Application money in excess of that required on allotment could be utilized for calls. Make entries in the journal. *? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Chaudhary ltd. invited applications for 50000 shares of 10 each payable as follows: Rs 3 on application, Rs 4 on allotment, and the balance Rs 3 on first and final call. Applications were received for 64000 shares . The directors accepted applications for 47000 shares in full, alloted 3000 shares to applicants for 12000 shares and rejected applications for 5000 shares. Application money in excess of that required on allotment could be utilized for calls. Make entries in the journal. *? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Chaudhary ltd. invited applications for 50000 shares of 10 each payable as follows: Rs 3 on application, Rs 4 on allotment, and the balance Rs 3 on first and final call. Applications were received for 64000 shares . The directors accepted applications for 47000 shares in full, alloted 3000 shares to applicants for 12000 shares and rejected applications for 5000 shares. Application money in excess of that required on allotment could be utilized for calls. Make entries in the journal. *?.
Solutions for Chaudhary ltd. invited applications for 50000 shares of 10 each payable as follows: Rs 3 on application, Rs 4 on allotment, and the balance Rs 3 on first and final call. Applications were received for 64000 shares . The directors accepted applications for 47000 shares in full, alloted 3000 shares to applicants for 12000 shares and rejected applications for 5000 shares. Application money in excess of that required on allotment could be utilized for calls. Make entries in the journal. *? in English & in Hindi are available as part of our courses for Commerce.
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Chaudhary ltd. invited applications for 50000 shares of 10 each payable as follows: Rs 3 on application, Rs 4 on allotment, and the balance Rs 3 on first and final call. Applications were received for 64000 shares . The directors accepted applications for 47000 shares in full, alloted 3000 shares to applicants for 12000 shares and rejected applications for 5000 shares. Application money in excess of that required on allotment could be utilized for calls. Make entries in the journal. *?, a detailed solution for Chaudhary ltd. invited applications for 50000 shares of 10 each payable as follows: Rs 3 on application, Rs 4 on allotment, and the balance Rs 3 on first and final call. Applications were received for 64000 shares . The directors accepted applications for 47000 shares in full, alloted 3000 shares to applicants for 12000 shares and rejected applications for 5000 shares. Application money in excess of that required on allotment could be utilized for calls. Make entries in the journal. *? has been provided alongside types of Chaudhary ltd. invited applications for 50000 shares of 10 each payable as follows: Rs 3 on application, Rs 4 on allotment, and the balance Rs 3 on first and final call. Applications were received for 64000 shares . The directors accepted applications for 47000 shares in full, alloted 3000 shares to applicants for 12000 shares and rejected applications for 5000 shares. Application money in excess of that required on allotment could be utilized for calls. Make entries in the journal. *? theory, EduRev gives you an
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