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XYZ Ltd invited applications for Rs.10,000 shares of 10 each payable as follows Rs.2, on application, three on allotment to on first call and the balance of final call. All share were applicable and allotment. All the money duly received. Journalist, journalised the transactions.?
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XYZ Ltd invited applications for Rs.10,000 shares of 10 each payable a...
Journal Entry for XYZ Ltd Share Application, Allotment, and Calls
1. Share Application:
When XYZ Ltd invites applications for shares, individuals or entities interested in purchasing the shares need to apply. The journal entry for share application is as follows:
Share Application Account Dr. 10,000
To Share Capital Account 10,000
2. Share Allotment:
After the applications are received, XYZ Ltd decides to allot the shares to the applicants. The journal entry for share allotment is as follows:
Share Allotment Account Dr. 10,000
To Share Application Account 10,000
3. First Call:
Once the shares are allotted, the company may request the shareholders to make the first call payment. The journal entry for the first call is as follows:
First Call Account Dr. (Number of shares allotted x First call amount)
To Share Allotment Account (Number of shares allotted x First call amount)
4. Final Call:
After the first call payment is made, the company may request the shareholders to make the final call payment. The journal entry for the final call is as follows:
Final Call Account Dr. (Number of shares allotted x Final call amount)
To Share Allotment Account (Number of shares allotted x Final call amount)
5. Cash Receipts:
Finally, when the shareholders make the payment for share application, allotment, first call, and final call, the company receives cash. The journal entry for cash receipts is as follows:
Cash/Bank Account Dr. (Total cash received)
To Share Application Account (Cash received for share application)
To Share Allotment Account (Cash received for share allotment)
To First Call Account (Cash received for first call)
To Final Call Account (Cash received for final call)
Summary:
In summary, the journal entries for XYZ Ltd's share application, allotment, and calls would be as follows:
- Share Application Account Dr. 10,000
To Share Capital Account 10,000
- Share Allotment Account Dr. 10,000
To Share Application Account 10,000
- First Call Account Dr. (Number of shares allotted x First call amount)
To Share Allotment Account (Number of shares allotted x First call amount)
- Final Call Account Dr. (Number of shares allotted x Final call amount)
To Share Allotment Account (Number of shares allotted x Final call amount)
- Cash/Bank Account Dr. (Total cash received)
To Share Application Account (Cash received for share application)
To Share Allotment Account (Cash received for share allotment)
To First Call Account (Cash received for first call)
To Final Call Account (Cash received for final call)
1. Share Application:
When XYZ Ltd invites applications for shares, individuals or entities interested in purchasing the shares need to apply. The journal entry for share application is as follows:
Share Application Account Dr. 10,000
To Share Capital Account 10,000
2. Share Allotment:
After the applications are received, XYZ Ltd decides to allot the shares to the applicants. The journal entry for share allotment is as follows:
Share Allotment Account Dr. 10,000
To Share Application Account 10,000
3. First Call:
Once the shares are allotted, the company may request the shareholders to make the first call payment. The journal entry for the first call is as follows:
First Call Account Dr. (Number of shares allotted x First call amount)
To Share Allotment Account (Number of shares allotted x First call amount)
4. Final Call:
After the first call payment is made, the company may request the shareholders to make the final call payment. The journal entry for the final call is as follows:
Final Call Account Dr. (Number of shares allotted x Final call amount)
To Share Allotment Account (Number of shares allotted x Final call amount)
5. Cash Receipts:
Finally, when the shareholders make the payment for share application, allotment, first call, and final call, the company receives cash. The journal entry for cash receipts is as follows:
Cash/Bank Account Dr. (Total cash received)
To Share Application Account (Cash received for share application)
To Share Allotment Account (Cash received for share allotment)
To First Call Account (Cash received for first call)
To Final Call Account (Cash received for final call)
Summary:
In summary, the journal entries for XYZ Ltd's share application, allotment, and calls would be as follows:
- Share Application Account Dr. 10,000
To Share Capital Account 10,000
- Share Allotment Account Dr. 10,000
To Share Application Account 10,000
- First Call Account Dr. (Number of shares allotted x First call amount)
To Share Allotment Account (Number of shares allotted x First call amount)
- Final Call Account Dr. (Number of shares allotted x Final call amount)
To Share Allotment Account (Number of shares allotted x Final call amount)
- Cash/Bank Account Dr. (Total cash received)
To Share Application Account (Cash received for share application)
To Share Allotment Account (Cash received for share allotment)
To First Call Account (Cash received for first call)
To Final Call Account (Cash received for final call)
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XYZ Ltd invited applications for Rs.10,000 shares of 10 each payable as follows Rs.2, on application, three on allotment to on first call and the balance of final call. All share were applicable and allotment. All the money duly received. Journalist, journalised the transactions.?
Question Description
XYZ Ltd invited applications for Rs.10,000 shares of 10 each payable as follows Rs.2, on application, three on allotment to on first call and the balance of final call. All share were applicable and allotment. All the money duly received. Journalist, journalised the 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 applications for Rs.10,000 shares of 10 each payable as follows Rs.2, on application, three on allotment to on first call and the balance of final call. All share were applicable and allotment. All the money duly received. Journalist, journalised the transactions.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for XYZ Ltd invited applications for Rs.10,000 shares of 10 each payable as follows Rs.2, on application, three on allotment to on first call and the balance of final call. All share were applicable and allotment. All the money duly received. Journalist, journalised the transactions.?.
XYZ Ltd invited applications for Rs.10,000 shares of 10 each payable as follows Rs.2, on application, three on allotment to on first call and the balance of final call. All share were applicable and allotment. All the money duly received. Journalist, journalised the 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 applications for Rs.10,000 shares of 10 each payable as follows Rs.2, on application, three on allotment to on first call and the balance of final call. All share were applicable and allotment. All the money duly received. Journalist, journalised the transactions.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for XYZ Ltd invited applications for Rs.10,000 shares of 10 each payable as follows Rs.2, on application, three on allotment to on first call and the balance of final call. All share were applicable and allotment. All the money duly received. Journalist, journalised the transactions.?.
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XYZ Ltd invited applications for Rs.10,000 shares of 10 each payable as follows Rs.2, on application, three on allotment to on first call and the balance of final call. All share were applicable and allotment. All the money duly received. Journalist, journalised the transactions.?, a detailed solution for XYZ Ltd invited applications for Rs.10,000 shares of 10 each payable as follows Rs.2, on application, three on allotment to on first call and the balance of final call. All share were applicable and allotment. All the money duly received. Journalist, journalised the transactions.? has been provided alongside types of XYZ Ltd invited applications for Rs.10,000 shares of 10 each payable as follows Rs.2, on application, three on allotment to on first call and the balance of final call. All share were applicable and allotment. All the money duly received. Journalist, journalised the transactions.? theory, EduRev gives you an
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