Journal entries for issues of shares

Journal entries for issues of shares

The following entries are passed on application

1. On receiving the application money.

Bank A/c

To share Application A/C

(being the application money on share @ Rs…per share received)

2 On allotment of share .The following entries are passed

Firstly the application money on alloted share is transferred to share capital account by passing th following entry.

share Application A/c

To share capital A/c

(being the application money transferred to share capital account)

3. On the allotment of share when the money becomes due to the company the entry will be.

Share allotment account A/c

To share Capital Account A/c

(being the share allotment due on share @ rs on each share)

4. On receiving of the allotment money the entry is

Bank A/c

To share allotment A/c

(being the receipt of the allotment money)

5 .When the first call is due from the shareholder

Share first call account Dr

To Shar capital account

(being the first call money due on No of share @ Rs per share dated.

6.On receiving the first call money the entry is

Bank account

To share first call Account

(being share first call money shares @ Rs per share received)

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