Page 32 - DEBK12

8.22 Double Entry Book Keeping—CBSE XII

Bank A/c ...Dr. 25,000
To Shares Allotment A/c 25,000
(Allotment money received) (WN)
Shares First and Final Call A/c ...Dr. 75,000
To Share Capital A/c 75,000
(Call money due)
Bank A/c ...Dr. 75,000
To Shares First and Final call A/c 75,000
(Call money received)

Working Note:
Amount Due on Allotment = 25,000 × ` 3 = ` 75,000;
Excess Application Money Received = (37,500 – 25,000) × ` 4 = ` 50,000.
It means, the excess application money ` 50,000 will be adjusted towards shares allotment and only ` 25,000
will be received later.

Case 2. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 1,75,000
To Shares Application A/c 1,75,000
(Application money received)
Shares Application A/c ...Dr. 1,75,000
To Share Capital A/c 1,00,000
To Shares Allotment A/c 75,000
(Application money adjusted)
Shares Allotment A/c ...Dr. 75,000
To Share Capital A/c 75,000
(Allotment money due)
Shares First and Final Call A/c ...Dr. 75,000
To Share Capital A/c 75,000
(Call money due)
Bank A/c ...Dr. 75,000
To Shares First and Final call A/c 75,000
(Call money received)
Working Note:
Amount Due on Allotment = ` 75,000; Excess Application Money Received = (43,750 – 25,000) × ` 4 = ` 75,000.
It means, the entire excess application money will be adjusted towards shares allotment and no amount will be
received on allotment.
Case 3. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 2,00,000
To Shares Application A/c 2,00,000
(Application money received)
Shares Application A/c ...Dr. 2,00,000
To Share Capital A/c 1,00,000
To Shares Allotment A/c 75,000
To Bank A/c 25,000
(Application money adjusted)