Journal entries for issues of shares
Accounts course Academy dehradun

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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