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Question -

Software solution India Ltd inviting application for 20,000 equity share of Rs 100 each, payable Rs 40 on application, Rs 30 on allotment and Rs 30 on call. The company received applications for 32,000 shares. Application for 2,000 shares were rejected and money returned to Applicants. Applications for 10,000 shares were accepted in full and applicants for 20,000 share allotted half of the number of share applied and excess application money adjusted into allotment. All money received due on allotment and call. Prepare journal and cash book.



Answer -

Books of Software Solution India Ltd.

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Equity Share Application A/c

Dr.

 

12,00,000

 

 

 

To Equity Share Capital A/c

 

 

8,00,000

 

 

To Equity Share Allotment A/c

 

 

4,00,000

 

(Application money transferred to Equity Share Capital for 20,000 shares @ Rs 40 and Rs 4,00,000 is adjusted towards allotment)

 

 

 

 

 

 

 

 

 

 

Equity Share Allotment A/c

Dr.

 

6,00,000

 

 

 

To Equity Share Capital A/c

 

 

 

6,00,000

 

(Equity Share Allotment money due on 20,000 @ Rs 30

per share)

 

 

 

 

 

 

 

 

 

 

 

Equity Share First and Final call A/c

Dr.

 

6,00,000

 

 

 

To Equity Share Capital A/c

 

 

 

6,00,000

 

(Equity share on First and Final call due on 20,000 @

Rs 30 per share)

 

 

 

 

 

 

 

 

 

 

 

Cash Book (Bank Column)

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

 

Equity Share Application

 

12,80,000

 

Equity Share Application

 

80,000

 

Equity Share Allotment

 

2,00,000

 

Balance c/d

 

20,00,000

 

Equity Share First and Final Call

 

6,00,000

 

 

 

 

 

 

 

20,80,000

 

 

 

20,80,000

 

 

 

 

 

 

 

 


Working Note:

Amount due on Allotment for 20,000 shares @ Rs 30 per share

6,00,000

Money adjusted on application 10,000 shares @ Rs 40 each

4,00,000

Money to be received on Allotment

2,00,000

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