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XYZ ltd invited application for Rs 1000 shares of Rs 10 each payable as follows.Rs 2 on application,Rs 3 on allotment,Rs 2 on final call,and the balance on final call.All the shares were applied and allotment.All the money was duly received except 200 shares on final call.Journalise these transactions?
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XYZ ltd invited application for Rs 1000 shares of Rs 10 each payable a...
Journal Entries for XYZ Ltd Share Application and Allotment
1. Share Application
When the company invites applications for shares, the following journal entry is made:
Share Application A/c Dr. Rs. 2,000
To Share Capital A/c Rs. 2,000
Explanation:
The Share Application account is debited with the total amount received from the applicants, which is Rs. 2,000 (200 shares x Rs. 10 per share). On the other hand, the Share Capital account is credited with the same amount to record the increase in the company's share capital.
2. Share Allotment
After the application period, when the shares are allotted to the applicants, the following journal entry is made:
Share Allotment A/c Dr. Rs. 3,000
To Share Application A/c Rs. 3,000
Explanation:
The Share Allotment account is debited with the total amount received from the applicants on allotment, which is Rs. 3,000 (200 shares x Rs. 15 per share). The Share Application account is credited with the same amount to eliminate the initial entry made during the application stage.
3. Receipt of Money on Allotment
When the money on allotment is received from the applicants, the following journal entry is made:
Bank A/c Dr. Rs. 3,000
To Share Allotment A/c Rs. 3,000
Explanation:
The Bank account is debited with the amount received from the applicants on allotment, which is Rs. 3,000. The Share Allotment account is credited with the same amount to eliminate the initial entry made during the allotment stage.
4. Receipt of Money on Final Call
When the final call money is received from the shareholders, the following journal entry is made:
Bank A/c Dr. Rs. 1,600
To Share Final Call A/c Rs. 1,600
Explanation:
The Bank account is debited with the amount received on the final call, which is Rs. 1,600 (200 shares x Rs. 8 per share). The Share Final Call account is credited with the same amount to record the receipt of the final call money.
5. Adjustment for Unpaid Final Call
If there are any unpaid final call shares, an adjustment entry is made as follows:
Share Final Call A/c Dr. Rs. 400
To Share Capital A/c Rs. 400
Explanation:
The Share Final Call account is debited with the amount of unpaid final call shares, which is Rs. 400 (200 shares x Rs. 2 per share). The Share Capital account is credited with the same amount to reduce the share capital due to the unpaid final call shares.
Summary
These journal entries record the various stages of share application, allotment, and receipt of money. The Share Application, Share Allotment, Share Final Call, and Bank accounts are used to track the inflow of funds and the corresponding capital increase. In case of any unpaid final call shares, an adjustment entry is made to reflect the reduction in share capital.
1. Share Application
When the company invites applications for shares, the following journal entry is made:
Share Application A/c Dr. Rs. 2,000
To Share Capital A/c Rs. 2,000
Explanation:
The Share Application account is debited with the total amount received from the applicants, which is Rs. 2,000 (200 shares x Rs. 10 per share). On the other hand, the Share Capital account is credited with the same amount to record the increase in the company's share capital.
2. Share Allotment
After the application period, when the shares are allotted to the applicants, the following journal entry is made:
Share Allotment A/c Dr. Rs. 3,000
To Share Application A/c Rs. 3,000
Explanation:
The Share Allotment account is debited with the total amount received from the applicants on allotment, which is Rs. 3,000 (200 shares x Rs. 15 per share). The Share Application account is credited with the same amount to eliminate the initial entry made during the application stage.
3. Receipt of Money on Allotment
When the money on allotment is received from the applicants, the following journal entry is made:
Bank A/c Dr. Rs. 3,000
To Share Allotment A/c Rs. 3,000
Explanation:
The Bank account is debited with the amount received from the applicants on allotment, which is Rs. 3,000. The Share Allotment account is credited with the same amount to eliminate the initial entry made during the allotment stage.
4. Receipt of Money on Final Call
When the final call money is received from the shareholders, the following journal entry is made:
Bank A/c Dr. Rs. 1,600
To Share Final Call A/c Rs. 1,600
Explanation:
The Bank account is debited with the amount received on the final call, which is Rs. 1,600 (200 shares x Rs. 8 per share). The Share Final Call account is credited with the same amount to record the receipt of the final call money.
5. Adjustment for Unpaid Final Call
If there are any unpaid final call shares, an adjustment entry is made as follows:
Share Final Call A/c Dr. Rs. 400
To Share Capital A/c Rs. 400
Explanation:
The Share Final Call account is debited with the amount of unpaid final call shares, which is Rs. 400 (200 shares x Rs. 2 per share). The Share Capital account is credited with the same amount to reduce the share capital due to the unpaid final call shares.
Summary
These journal entries record the various stages of share application, allotment, and receipt of money. The Share Application, Share Allotment, Share Final Call, and Bank accounts are used to track the inflow of funds and the corresponding capital increase. In case of any unpaid final call shares, an adjustment entry is made to reflect the reduction in share capital.
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XYZ ltd invited application for Rs 1000 shares of Rs 10 each payable as follows.Rs 2 on application,Rs 3 on allotment,Rs 2 on final call,and the balance on final call.All the shares were applied and allotment.All the money was duly received except 200 shares on final call.Journalise these transactions?
Question Description
XYZ ltd invited application for Rs 1000 shares of Rs 10 each payable as follows.Rs 2 on application,Rs 3 on allotment,Rs 2 on final call,and the balance on final call.All the shares were applied and allotment.All the money was duly received except 200 shares on final call.Journalise these transactions? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about XYZ ltd invited application for Rs 1000 shares of Rs 10 each payable as follows.Rs 2 on application,Rs 3 on allotment,Rs 2 on final call,and the balance on final call.All the shares were applied and allotment.All the money was duly received except 200 shares on final call.Journalise these transactions? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for XYZ ltd invited application for Rs 1000 shares of Rs 10 each payable as follows.Rs 2 on application,Rs 3 on allotment,Rs 2 on final call,and the balance on final call.All the shares were applied and allotment.All the money was duly received except 200 shares on final call.Journalise these transactions?.
XYZ ltd invited application for Rs 1000 shares of Rs 10 each payable as follows.Rs 2 on application,Rs 3 on allotment,Rs 2 on final call,and the balance on final call.All the shares were applied and allotment.All the money was duly received except 200 shares on final call.Journalise these transactions? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about XYZ ltd invited application for Rs 1000 shares of Rs 10 each payable as follows.Rs 2 on application,Rs 3 on allotment,Rs 2 on final call,and the balance on final call.All the shares were applied and allotment.All the money was duly received except 200 shares on final call.Journalise these transactions? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for XYZ ltd invited application for Rs 1000 shares of Rs 10 each payable as follows.Rs 2 on application,Rs 3 on allotment,Rs 2 on final call,and the balance on final call.All the shares were applied and allotment.All the money was duly received except 200 shares on final call.Journalise these transactions?.
Solutions for XYZ ltd invited application for Rs 1000 shares of Rs 10 each payable as follows.Rs 2 on application,Rs 3 on allotment,Rs 2 on final call,and the balance on final call.All the shares were applied and allotment.All the money was duly received except 200 shares on final call.Journalise these transactions? in English & in Hindi are available as part of our courses for Commerce.
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