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Punjab spinning mills offered 70,000 shares of rupees 100 each at a premium of rupees 20 per share to public payable as follows: rupees 35 on applicaton rupees 65 on allotment (including premium) rupees 20 on final call . application for 70,000 shares were recieved . prepare journal?
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Punjab spinning mills offered 70,000 shares of rupees 100 each at a pr...
Journal Entry for Punjab Spinning Mills Offered Shares
Heading 1: Introduction
Punjab Spinning Mills offered 70,000 shares at a premium of rupees 20 per share to the public. The face value of each share was rupees 100.
Heading 2: Application Stage
Debit Bank Account - Rupees 24,50,000 (70,000 shares x rupees 35 per share)
Credit Share Application Account - Rupees 24,50,000
Heading 3: Allotment Stage
Debit Share Application Account - Rupees 24,50,000
Debit Share Premium Account - Rupees 14,00,000 (70,000 shares x rupees 20 per share)
Credit Share Allotment Account - Rupees 33,60,000 (70,000 shares x rupees 100 per share)
Heading 4: Final Call Stage
Debit Share Allotment Account - Rupees 33,60,000
Debit Share Premium Account - Rupees 14,00,000
Credit Share Final Call Account - Rupees 14,00,000 (70,000 shares x rupees 20 per share)
Credit Share Capital Account - Rupees 33,60,000 (70,000 shares x rupees 100 per share)
Explanation
- At the application stage, the company received rupees 24,50,000 from the public against the 70,000 shares applied.
- At the allotment stage, the company allotted the shares and received rupees 33,60,000 (70,000 shares x rupees 100 per share) from the public. The company also recorded the premium amount of rupees 20 per share (totaling rupees 14,00,000) in the Share Premium Account.
- At the final call stage, the company collected the remaining amount of rupees 20 per share (totaling rupees 14,00,000) from the public and credited it to the Share Final Call Account. The company also transferred the allotment and premium amount to the Share Capital Account, indicating that the shares are fully paid.
Heading 1: Introduction
Punjab Spinning Mills offered 70,000 shares at a premium of rupees 20 per share to the public. The face value of each share was rupees 100.
Heading 2: Application Stage
Debit Bank Account - Rupees 24,50,000 (70,000 shares x rupees 35 per share)
Credit Share Application Account - Rupees 24,50,000
Heading 3: Allotment Stage
Debit Share Application Account - Rupees 24,50,000
Debit Share Premium Account - Rupees 14,00,000 (70,000 shares x rupees 20 per share)
Credit Share Allotment Account - Rupees 33,60,000 (70,000 shares x rupees 100 per share)
Heading 4: Final Call Stage
Debit Share Allotment Account - Rupees 33,60,000
Debit Share Premium Account - Rupees 14,00,000
Credit Share Final Call Account - Rupees 14,00,000 (70,000 shares x rupees 20 per share)
Credit Share Capital Account - Rupees 33,60,000 (70,000 shares x rupees 100 per share)
Explanation
- At the application stage, the company received rupees 24,50,000 from the public against the 70,000 shares applied.
- At the allotment stage, the company allotted the shares and received rupees 33,60,000 (70,000 shares x rupees 100 per share) from the public. The company also recorded the premium amount of rupees 20 per share (totaling rupees 14,00,000) in the Share Premium Account.
- At the final call stage, the company collected the remaining amount of rupees 20 per share (totaling rupees 14,00,000) from the public and credited it to the Share Final Call Account. The company also transferred the allotment and premium amount to the Share Capital Account, indicating that the shares are fully paid.
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Punjab spinning mills offered 70,000 shares of rupees 100 each at a premium of rupees 20 per share to public payable as follows: rupees 35 on applicaton rupees 65 on allotment (including premium) rupees 20 on final call . application for 70,000 shares were recieved . prepare journal?
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Punjab spinning mills offered 70,000 shares of rupees 100 each at a premium of rupees 20 per share to public payable as follows: rupees 35 on applicaton rupees 65 on allotment (including premium) rupees 20 on final call . application for 70,000 shares were recieved . prepare journal? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Punjab spinning mills offered 70,000 shares of rupees 100 each at a premium of rupees 20 per share to public payable as follows: rupees 35 on applicaton rupees 65 on allotment (including premium) rupees 20 on final call . application for 70,000 shares were recieved . prepare journal? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Punjab spinning mills offered 70,000 shares of rupees 100 each at a premium of rupees 20 per share to public payable as follows: rupees 35 on applicaton rupees 65 on allotment (including premium) rupees 20 on final call . application for 70,000 shares were recieved . prepare journal?.
Punjab spinning mills offered 70,000 shares of rupees 100 each at a premium of rupees 20 per share to public payable as follows: rupees 35 on applicaton rupees 65 on allotment (including premium) rupees 20 on final call . application for 70,000 shares were recieved . prepare journal? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Punjab spinning mills offered 70,000 shares of rupees 100 each at a premium of rupees 20 per share to public payable as follows: rupees 35 on applicaton rupees 65 on allotment (including premium) rupees 20 on final call . application for 70,000 shares were recieved . prepare journal? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Punjab spinning mills offered 70,000 shares of rupees 100 each at a premium of rupees 20 per share to public payable as follows: rupees 35 on applicaton rupees 65 on allotment (including premium) rupees 20 on final call . application for 70,000 shares were recieved . prepare journal?.
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