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ABC Company Ltd. was registered with a capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each. The company offered to public for subscription 20,000 shares payable as follows. On Application Rs. 2 On Allotment Rs. 3 On First Call Rs. 2 On Final Call Rs. 3 All the shares are subscribed allotted and paid for at due dates. Show the journal entries in the books of कंपनी?
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ABC Company Ltd. was registered with a capital of Rs. 10,00,000 divide...
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ABC Company Ltd. was registered with a capital of Rs. 10,00,000 divide...
Journal Entries in the Books of ABC Company Ltd.
1. On Application:
Accounting Equation:
Assets = Liabilities + Shareholders' Equity
No effect on accounting equation.
Journal Entry:
Debit Bank Account (20,000 shares x Rs. 2) = Rs. 40,000
Credit Share Application Account (20,000 shares x Rs. 2) = Rs. 40,000
2. On Allotment:
Accounting Equation:
Assets = Liabilities + Shareholders' Equity
Increase in Shareholders' Equity (Capital)
Journal Entry:
Debit Share Application Account (20,000 shares x Rs. 2) = Rs. 40,000
Debit Share Allotment Account (20,000 shares x Rs. 3) = Rs. 60,000
Credit Share Capital Account (20,000 shares x Rs. 10) = Rs. 2,00,000
3. On First Call:
Accounting Equation:
Assets = Liabilities + Shareholders' Equity
No effect on accounting equation.
Journal Entry:
Debit Share First Call Account (20,000 shares x Rs. 2) = Rs. 40,000
Credit Share Allotment Account (20,000 shares x Rs. 3) = Rs. 60,000
4. On Final Call:
Accounting Equation:
Assets = Liabilities + Shareholders' Equity
No effect on accounting equation.
Journal Entry:
Debit Share Final Call Account (20,000 shares x Rs. 3) = Rs. 60,000
Credit Share First Call Account (20,000 shares x Rs. 2) = Rs. 40,000
5. Bank Account:
Accounting Equation:
Assets = Liabilities + Shareholders' Equity
Decrease in Assets (Bank)
Journal Entry:
Debit Bank Account (20,000 shares x Rs. 2) = Rs. 40,000
Credit Share Final Call Account (20,000 shares x Rs. 3) = Rs. 60,000
Summary:
- On application, the company received Rs. 40,000, which is recorded by debiting the Bank Account and crediting the Share Application Account.
- On allotment, the company received Rs. 60,000, which is recorded by debiting the Share Application Account and Share Allotment Account, and crediting the Share Capital Account.
- On the first call, there is no effect on the accounting equation as the amount is already received.
- On the final call, there is no effect on the accounting equation as the amount is already received.
- The bank account is debited with Rs. 40,000 and credited with Rs. 60,000 to record the payment made by the shareholders for the shares.
These journal
1. On Application:
Accounting Equation:
Assets = Liabilities + Shareholders' Equity
No effect on accounting equation.
Journal Entry:
Debit Bank Account (20,000 shares x Rs. 2) = Rs. 40,000
Credit Share Application Account (20,000 shares x Rs. 2) = Rs. 40,000
2. On Allotment:
Accounting Equation:
Assets = Liabilities + Shareholders' Equity
Increase in Shareholders' Equity (Capital)
Journal Entry:
Debit Share Application Account (20,000 shares x Rs. 2) = Rs. 40,000
Debit Share Allotment Account (20,000 shares x Rs. 3) = Rs. 60,000
Credit Share Capital Account (20,000 shares x Rs. 10) = Rs. 2,00,000
3. On First Call:
Accounting Equation:
Assets = Liabilities + Shareholders' Equity
No effect on accounting equation.
Journal Entry:
Debit Share First Call Account (20,000 shares x Rs. 2) = Rs. 40,000
Credit Share Allotment Account (20,000 shares x Rs. 3) = Rs. 60,000
4. On Final Call:
Accounting Equation:
Assets = Liabilities + Shareholders' Equity
No effect on accounting equation.
Journal Entry:
Debit Share Final Call Account (20,000 shares x Rs. 3) = Rs. 60,000
Credit Share First Call Account (20,000 shares x Rs. 2) = Rs. 40,000
5. Bank Account:
Accounting Equation:
Assets = Liabilities + Shareholders' Equity
Decrease in Assets (Bank)
Journal Entry:
Debit Bank Account (20,000 shares x Rs. 2) = Rs. 40,000
Credit Share Final Call Account (20,000 shares x Rs. 3) = Rs. 60,000
Summary:
- On application, the company received Rs. 40,000, which is recorded by debiting the Bank Account and crediting the Share Application Account.
- On allotment, the company received Rs. 60,000, which is recorded by debiting the Share Application Account and Share Allotment Account, and crediting the Share Capital Account.
- On the first call, there is no effect on the accounting equation as the amount is already received.
- On the final call, there is no effect on the accounting equation as the amount is already received.
- The bank account is debited with Rs. 40,000 and credited with Rs. 60,000 to record the payment made by the shareholders for the shares.
These journal
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ABC Company Ltd. was registered with a capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each. The company offered to public for subscription 20,000 shares payable as follows. On Application Rs. 2 On Allotment Rs. 3 On First Call Rs. 2 On Final Call Rs. 3 All the shares are subscribed allotted and paid for at due dates. Show the journal entries in the books of कंपनी?
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ABC Company Ltd. was registered with a capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each. The company offered to public for subscription 20,000 shares payable as follows. On Application Rs. 2 On Allotment Rs. 3 On First Call Rs. 2 On Final Call Rs. 3 All the shares are subscribed allotted and paid for at due dates. Show the journal entries in the books of कंपनी? 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 ABC Company Ltd. was registered with a capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each. The company offered to public for subscription 20,000 shares payable as follows. On Application Rs. 2 On Allotment Rs. 3 On First Call Rs. 2 On Final Call Rs. 3 All the shares are subscribed allotted and paid for at due dates. Show the journal entries in the books of कंपनी? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ABC Company Ltd. was registered with a capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each. The company offered to public for subscription 20,000 shares payable as follows. On Application Rs. 2 On Allotment Rs. 3 On First Call Rs. 2 On Final Call Rs. 3 All the shares are subscribed allotted and paid for at due dates. Show the journal entries in the books of कंपनी?.
ABC Company Ltd. was registered with a capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each. The company offered to public for subscription 20,000 shares payable as follows. On Application Rs. 2 On Allotment Rs. 3 On First Call Rs. 2 On Final Call Rs. 3 All the shares are subscribed allotted and paid for at due dates. Show the journal entries in the books of कंपनी? 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 ABC Company Ltd. was registered with a capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each. The company offered to public for subscription 20,000 shares payable as follows. On Application Rs. 2 On Allotment Rs. 3 On First Call Rs. 2 On Final Call Rs. 3 All the shares are subscribed allotted and paid for at due dates. Show the journal entries in the books of कंपनी? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ABC Company Ltd. was registered with a capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each. The company offered to public for subscription 20,000 shares payable as follows. On Application Rs. 2 On Allotment Rs. 3 On First Call Rs. 2 On Final Call Rs. 3 All the shares are subscribed allotted and paid for at due dates. Show the journal entries in the books of कंपनी?.
Solutions for ABC Company Ltd. was registered with a capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each. The company offered to public for subscription 20,000 shares payable as follows. On Application Rs. 2 On Allotment Rs. 3 On First Call Rs. 2 On Final Call Rs. 3 All the shares are subscribed allotted and paid for at due dates. Show the journal entries in the books of कंपनी? in English & in Hindi are available as part of our courses for B Com.
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ample number of questions to practice ABC Company Ltd. was registered with a capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each. The company offered to public for subscription 20,000 shares payable as follows. On Application Rs. 2 On Allotment Rs. 3 On First Call Rs. 2 On Final Call Rs. 3 All the shares are subscribed allotted and paid for at due dates. Show the journal entries in the books of कंपनी? tests, examples and also practice B Com tests.
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