Rashmi Ltd issued at par 10000 equity share of rs. 10 each playable ₹2...
Journal Entries for Rashmi Ltd
To record the issuance of 10,000 equity shares at par, the following journal entries will be made:
1. Application Money Received
- **Date**: [Issue Date]
- **Entry**:
- Bank Account Dr. ₹25,000
- To Equity Share Application Account ₹25,000
- (Application money received for 10,000 shares at ₹2.50 each)
2. Allotment Money Due
- **Date**: [Allotment Date]
- **Entry**:
- Equity Share Allotment Account Dr. ₹30,000
- To Equity Share Capital Account ₹1,00,000
- To Equity Share Allotment Account ₹30,000
- (Allotment money due on 10,000 shares at ₹3 each)
3. Allotment Money Received
- **Date**: [Allotment Date]
- **Entry**:
- Bank Account Dr. ₹30,000
- To Equity Share Allotment Account ₹30,000
- (Allotment money received)
4. Final Call Money Due
- **Date**: [Final Call Date]
- **Entry**:
- Equity Share Final Call Account Dr. ₹42,500
- To Equity Share Capital Account ₹1,00,000
- To Equity Share Final Call Account ₹42,500
- (Final call money due on 10,000 shares at ₹4.50 each)
5. Final Call Money Received (Except One Shareholder)
- **Date**: [Final Call Date]
- **Entry**:
- Bank Account Dr. ₹42,450
- To Equity Share Final Call Account ₹42,450
- (Final call money received except for one shareholder with 100 shares)
6. For the Default of Final Call
- **Date**: [Final Call Date]
- **Entry**:
- Equity Share Final Call Account Dr. ₹450
- To Calls in Arrears Account ₹450
- (Recording calls in arrears for the shareholder who defaulted)
These entries effectively track the capital raising process and the resulting obligations for Rashmi Ltd, reflecting both received and pending payments from shareholders.
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