Journal entries for issues of shares
The following entries are passed on application
1. On receiving the application money.
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
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
To share first call Account
(being share first call money shares @ Rs per share received)