Issue of Shares for Cash (Principles of Accounting II/Grade XII NEB) 2078/2021
Issue of Shares for Cash and Forfeiture of Shares 2064 Q.No. 9 A company limited issued 1,000 shares of Rs. 100 each at a premium of Rs. 20 per share, payable as under: Rs. 50 on application Rs. 70 on allotment (including premium) Applications were received for all the shares and all the shares were duly allotted. All the due sums were received. Required: Journal entries for application and allotment. Solution Journal Entries Date Particulars L.F. Debit Rs. Credit Rs. a Share application: Bank a/c (1000 × 50) .........................Dr. To Share application a/c (Being share application money received) 50,000 50,000 ...