Page 22 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Unit 1: Share Capital – Issue of Shares

Case III Notes

Journal
Date Particulars L.F.
1. Bank Account Dr. 3,48,000
To Share Application Account 3,48,000
(Being receipt of application money on
1,16,000 shares @ 3 per share)
2. Share Application Account Dr. 3,00,000
To Share Capital Account 48,000
To Bank Account
(Being transfer of application money to
share capital and refund of application
money to unsuccessful applicants)
3. Share Allotment Account Dr. 4,00,000
To Share Capital Account 4,00,000
(Being allotment money due on 1,00,000
shares @ 4 per share)

4. Bank Account Dr. 4,00,000
To Share Allotment Account 4,00,000
(Being allotment money received)
5. Share First and Final Call Account Dr. 5,00,000
To Share Capital Account 3,00,000
To Share Premium Account 2,00,000
(Being first and final call due on 1,00,000
shares @ 3 per share with share premium
@ 2 per share)
6. Bank Account Dr. 5,00,000
To Share First and Final Call 5,00,000
Account
(Being receipt of first and final call money
with premium)

7. Share First and Final Call Account Dr. 3,00,000
To Share Capital Account 3,00,000
(Being first and final call due on 1,00,000
share @ 3 per share)
8. Bank Account Dr. 5,00,000
To Share First and Final Call 3,00,000
Account
2,00,000
To Share Premium Account
(Being receipt of first and final call money
on 1,00,000 shares @ 3 per share along with
share premium @ 2 per share)
1. Amount of share premium can be utilised in writing off the preliminary expenses of the
company.
2. When the shares originally issued at discount are forfeited, discount account in respect of
them is always credited.
3. Calls-in-advance is a part of share capital.

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