Q.3.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-Solution

Q.3.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.

Books of Software solution India Ltd

Journal

Date	Particulars		L.F	Amount (Dr.)	Amount (Cr.)
	Bank A/c	Dr.		12,80,000
	To Equity share Application A/c				12,80,000
	( Application money received for 32,000 shares @ Rs 40 per share )
	Equity share Application A/c	Dr.		12,80,000
	To Equity share Capital A/c				8,00,000
	To Allotment A/c				4,00,000
	To Bank A/c				80,000
	Equity Share Allotment A/c	Dr.		6,00,000
	To Equity share Capital A/c				6,00,000
	( Allotment money Due on 20,000 shares @ 30 per share )
	Bank A/c	Dr.		2,00,000
	To Equity Share Allotment A/c				2,00,000
	( Allotment Money adjusted towards application money )
	Equity Share First and final Call A/c	Dr.		6,00,000
	To Equity share Capital A/c				6,00,000
	( Being money due on Equity Share First and final Call for 20,000 shares @ Rs 30 per each )
	Bank A/c	Dr.		6,00,000
	To Equity Share First and final Call A/c				6,00,000
	( Money received for Equity Share First and final Call for 20,000 shares @ Rs 30 per each )

Cash Book

Date	Particulars	J.F	Amount (Rs.)	Date	Particulars	J.F	Amount (Rs.)
	Equity Share Application A/c		12,80,000		Equity Share Application A/c		80,000
	Equity Share Allotement A/c		2,0,000
	Equity Share First and final Call A/c		6,00,000		Balance b/d		20,00,000
			20,80,000				20,80,000

Chapter-1 Accounting for Share Capital-II

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