Deepak Manufacturing Co. Ltd. Issued a prospectus inviting applications for 1,00,000 equity shares of ₹10 each payable as follows - ₹ 2 on Application ₹ 4 on Allotment ₹ 2 on first call ₹ 2 on final call Application were received for ₹1,20,000 equity shares. The Directors decided to reject excess application and refunded application money on that. Company received all money. Pass Journal Entries in the Books of a Company
4. Deepak Manufacturing Co. Ltd. Issued a prospectus inviting applications for 1,00,000 equity shares of ₹10 each payable as follows -
₹ 2 on Application
₹ 4 on Allotment
₹ 2 on first call
₹ 2 on final call
Application were received for ₹1,20,000 equity shares. The Directors decided to reject excess application and refunded application money on that. Company received all money.
Pass Journal Entries in the Books of a Company.
Journal Entry
In the Books of Deepak manufacturing Co. Ltd.
Date | Particulars | J.F | Debit ₹ | Credit ₹ |
1. | Bank A/c Dr. To Equity Share Application A/c [Being Equity Share Application money received] |
| 2,40,000 |
2,40,000 |
2. | Equity Share Application A/c Dr. To Equity Share Capital A/c [Being Equity Share Application money transferred to Share Capital Account] |
| 2,00,000 |
2,00,000 |
3. | Equity Share Application A/c Dr. To Bank A/c [Being excess on application money refunded] |
| 40,000 |
40,000 |
4. | Equity Share Allotment A/c Dr. To Equity Share Capital A/c [Being Equity Share allotment money due] |
| 4,00,000 |
4,00,000 |
5. | Bank A/c Dr. To Equity Share Allotment A/c [Being Equity Share Allotment money received] |
| 4,00,000 |
4,00,000 |
6. | Equity Share First Call A/c Dr. To Equity Share Capital A/c [Being Equity Share first call money due] |
| 2,00,000 |
2,00,000 |
7. | Bank A/c Dr. To Equity Share First Call A/c [Being Equity Share First Call Money received] |
| 2,00,000
|
2,00,000 |
8. | Equity Share Final Call A/c Dr. To Equity Share Capital A/c [Being Equity Share Final call money due] |
| 2,00,000 |
2,00,000 |
9. | Bank A/c Dr. To Equity Share Final Call money received] |
| 2,00,000 |
2,00,000 |
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