Anish Limited issued 30,000 equity shares of Rs.100 each payable at Rs.30 on application, Rs.50 on allotment and Rs.20 on Ist and final call. All money was duly received. Record these transactions in the journal of the company.
JOURNAL OF ANISH LIMITED
| Date | Particulars | L.F. | Debit (Rs.) | Credit (Rs.) |
|---|---|---|---|---|
| Bank A/c Dr. | 9,00,000 | |||
| To Equity Share Application A/c | 9,00,000 | |||
| (Being application money received on 30,000 shares @ Rs.30 per share) | ||||
| Equity Share Application A/c Dr. | 9,00,000 | |||
| To Equity Share Capital A/c | 9,00,000 | |||
| (Being application money transferred to Share Capital) | ||||
| Equity Share Allotment A/c Dr. | 15,00,000 | |||
| To Equity Share Capital A/c | 15,00,000 | |||
| (Being allotment money due on 30,000 shares @ Rs.50 per share) | ||||
| Bank A/c Dr. | 15,00,000 | |||
| To Equity Share Allotment A/c | 15,00,000 | |||
| (Being allotment money received in full) | ||||
| Equity Share First and Final Call A/c Dr. | 6,00,000 | |||
| To Equity Share Capital A/c | 6,00,000 | |||
| (Being first and final call money due on 30,000 shares @ Rs.20 per share) | ||||
| Bank A/c Dr. | 6,00,000 | |||
| To Equity Share First and Final Call A/c | 6,00,000 | |||
| (Being first and final call money received in full) |
Working Notes:
- Application Money: 30,000 × Rs.30 = Rs.9,00,000
- Allotment Money: 30,000 × Rs.50 = Rs.15,00,000
- First and Final Call: 30,000 × Rs.20 = Rs.6,00,000
- Total Share Capital: 30,000 × Rs.100 = Rs.30,00,000
Explanation
This is a straightforward share issuance question where all money was duly received. The journal entries follow the standard sequence: (1) Receipt of application money, (2) Transfer of application money to share capital, (3) Allotment money due, (4) Receipt of allotment money, (5) Call money due, and (6) Receipt of call money. Since all amounts were received without default, no entries for calls-in-arrears or forfeiture are needed. The total share capital raised is Rs.30,00,000 (30,000 shares × Rs.100 each).
Solution Steps
Step 1: Calculate application money = 30,000 shares × Rs.30 = Rs.9,00,000
Step 2: Calculate allotment money = 30,000 shares × Rs.50 = Rs.15,00,000
Step 3: Calculate first and final call money = 30,000 shares × Rs.20 = Rs.6,00,000
Step 4: Pass journal entries for receipt and transfer of each installment
Step 5: Verify total = Rs.9,00,000 + Rs.15,00,000 + Rs.6,00,000 = Rs.30,00,000 (equals total share capital)