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. 

 

Solution: 

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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