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Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment Applications for 1,20,000 shares were received. The directors allotted the shares as follows To applicants of 80,000 shares - Full allotment To applicants of 30,000 shares - 20,000 shares To applicants of 10,000 shares – Nil. Give journal entries assuming that all the sum due on allotment has been received and no call has been made.?
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Bangalore Bottling Co. Ltd. issued a prospectus inviting applications ...
Journal Entries for Bangalore Bottling Co. Ltd.
1. On receipt of applications:
Bank A/c Dr. 2,40,000
To Share Application A/c 2,40,000
(Being the amount received on application for 1,20,000 shares)
2. On allotment:
Share Application A/c Dr. 2,40,000
To Share Capital A/c 1,00,000
To Share Allotment A/c 1,40,000
(Being the allotment of shares as per the prospectus)
3. On receipt of allotment money:
Share Allotment A/c Dr. 1,40,000
To Bank A/c 1,40,000
(Being the receipt of allotment money)
Explanation:
Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each. The total amount to be raised was Rs. 10,00,000. The company received applications for 1,20,000 shares amounting to Rs. 12,00,000. The company's directors decided to allot shares as follows:
- Full allotment to applicants of 80,000 shares
- 20,000 shares to applicants of 30,000 shares
- Nil to applicants of 10,000 shares
The total number of shares allotted was 1,00,000. The company received Rs. 2,40,000 on application and Rs. 1,40,000 on allotment. The total amount received was Rs. 3,80,000.
The journal entries above show the accounting treatment for the receipt of applications, allotment of shares, and receipt of allotment money. The amount received on application is credited to the Share Application Account, and the amount received on allotment is credited to the Share Allotment Account. The Share Capital Account is credited with the nominal value of shares allotted, i.e., Rs. 10 per share. The Bank Account is debited with the amount received on allotment.
It is important to note that no call has been made in this case, i.e., the entire amount due on shares has been collected at the time of allotment.
1. On receipt of applications:
Bank A/c Dr. 2,40,000
To Share Application A/c 2,40,000
(Being the amount received on application for 1,20,000 shares)
2. On allotment:
Share Application A/c Dr. 2,40,000
To Share Capital A/c 1,00,000
To Share Allotment A/c 1,40,000
(Being the allotment of shares as per the prospectus)
3. On receipt of allotment money:
Share Allotment A/c Dr. 1,40,000
To Bank A/c 1,40,000
(Being the receipt of allotment money)
Explanation:
Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each. The total amount to be raised was Rs. 10,00,000. The company received applications for 1,20,000 shares amounting to Rs. 12,00,000. The company's directors decided to allot shares as follows:
- Full allotment to applicants of 80,000 shares
- 20,000 shares to applicants of 30,000 shares
- Nil to applicants of 10,000 shares
The total number of shares allotted was 1,00,000. The company received Rs. 2,40,000 on application and Rs. 1,40,000 on allotment. The total amount received was Rs. 3,80,000.
The journal entries above show the accounting treatment for the receipt of applications, allotment of shares, and receipt of allotment money. The amount received on application is credited to the Share Application Account, and the amount received on allotment is credited to the Share Allotment Account. The Share Capital Account is credited with the nominal value of shares allotted, i.e., Rs. 10 per share. The Bank Account is debited with the amount received on allotment.
It is important to note that no call has been made in this case, i.e., the entire amount due on shares has been collected at the time of allotment.
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Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment Applications for 1,20,000 shares were received. The directors allotted the shares as follows To applicants of 80,000 shares - Full allotment To applicants of 30,000 shares - 20,000 shares To applicants of 10,000 shares – Nil. Give journal entries assuming that all the sum due on allotment has been received and no call has been made.?
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Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment Applications for 1,20,000 shares were received. The directors allotted the shares as follows To applicants of 80,000 shares - Full allotment To applicants of 30,000 shares - 20,000 shares To applicants of 10,000 shares – Nil. Give journal entries assuming that all the sum due on allotment has been received and no call has been made.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment Applications for 1,20,000 shares were received. The directors allotted the shares as follows To applicants of 80,000 shares - Full allotment To applicants of 30,000 shares - 20,000 shares To applicants of 10,000 shares – Nil. Give journal entries assuming that all the sum due on allotment has been received and no call has been made.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment Applications for 1,20,000 shares were received. The directors allotted the shares as follows To applicants of 80,000 shares - Full allotment To applicants of 30,000 shares - 20,000 shares To applicants of 10,000 shares – Nil. Give journal entries assuming that all the sum due on allotment has been received and no call has been made.?.
Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment Applications for 1,20,000 shares were received. The directors allotted the shares as follows To applicants of 80,000 shares - Full allotment To applicants of 30,000 shares - 20,000 shares To applicants of 10,000 shares – Nil. Give journal entries assuming that all the sum due on allotment has been received and no call has been made.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment Applications for 1,20,000 shares were received. The directors allotted the shares as follows To applicants of 80,000 shares - Full allotment To applicants of 30,000 shares - 20,000 shares To applicants of 10,000 shares – Nil. Give journal entries assuming that all the sum due on allotment has been received and no call has been made.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment Applications for 1,20,000 shares were received. The directors allotted the shares as follows To applicants of 80,000 shares - Full allotment To applicants of 30,000 shares - 20,000 shares To applicants of 10,000 shares – Nil. Give journal entries assuming that all the sum due on allotment has been received and no call has been made.?.
Solutions for Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment Applications for 1,20,000 shares were received. The directors allotted the shares as follows To applicants of 80,000 shares - Full allotment To applicants of 30,000 shares - 20,000 shares To applicants of 10,000 shares – Nil. Give journal entries assuming that all the sum due on allotment has been received and no call has been made.? in English & in Hindi are available as part of our courses for B Com.
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Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment Applications for 1,20,000 shares were received. The directors allotted the shares as follows To applicants of 80,000 shares - Full allotment To applicants of 30,000 shares - 20,000 shares To applicants of 10,000 shares – Nil. Give journal entries assuming that all the sum due on allotment has been received and no call has been made.?, a detailed solution for Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment Applications for 1,20,000 shares were received. The directors allotted the shares as follows To applicants of 80,000 shares - Full allotment To applicants of 30,000 shares - 20,000 shares To applicants of 10,000 shares – Nil. Give journal entries assuming that all the sum due on allotment has been received and no call has been made.? has been provided alongside types of Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment Applications for 1,20,000 shares were received. The directors allotted the shares as follows To applicants of 80,000 shares - Full allotment To applicants of 30,000 shares - 20,000 shares To applicants of 10,000 shares – Nil. Give journal entries assuming that all the sum due on allotment has been received and no call has been made.? theory, EduRev gives you an
ample number of questions to practice Bangalore Bottling Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of Rs. 10 each, payable as Rs. 2 on application, Rs. 3 on allotment Applications for 1,20,000 shares were received. The directors allotted the shares as follows To applicants of 80,000 shares - Full allotment To applicants of 30,000 shares - 20,000 shares To applicants of 10,000 shares – Nil. Give journal entries assuming that all the sum due on allotment has been received and no call has been made.? tests, examples and also practice B Com tests.
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