Page 327 - VIRANSH COACHING CLASSES

Solution :
Journal Entires in the Books of Ankita Ltd.
Date Particulars L.F. Debit ` Credit `
1. Bank A/c .............................................................Dr. ` 40,000
To Equity Share Application A/c 40,000
(Being application money on 10,000 Equity shares
@ ` 4 per share received)
2. Equity Share Application A/c .............................Dr. 40,000
To Equity Share Capital A/c 40,000
(Being application money on 10,000 Equity shares
@ ` 4 per share transferred to preference share
capital)
3. Equity Share Allotment A/c ................................Dr. 40,000
To Equity Share Capital A/c 20,000
To Share Premium A/c 20,000
(Being allotment money on 10,000 equity shares @ `
4 per share due)

4. Bank A/c .............................................................Dr. 40,000
To Equity Share Allotment A/c 40,000
(Being allotment money on 10,000 equity shares @ `
4 per share received)
5. Equity Share First & Final Call A/c ...................Dr. 40,000
To Equity Share Capital A/c 40,000
(Being Equity share first & final call money on 10,000
equity shares @ ` 4 per share due)
6. Bank A/c .............................................................Dr. 40,000
To Equity Share First & Final call A/c 40,000
(Being Equity share 1st & Final call money on 10,000
equity shares @ ` 4 per share received)

Balance Sheet of Ankita Ltd.

Liabilities Amount ` Assets Amount `
Share Capital Bank 1,20,000
10,000 Eq. shares of 10 each 1,00,000

Share Premium / Securities 20,000
Premium A/c

1,20,000 1,20,000

Issue of Shares at Discount -
When a company issues shares at a price less than the face value of the shares, it is known as issue of
shares at discount Normally, shares are not issued at discount by a company because the discount
allowed is a loss to the company which no company would like to incur. The loss on issue of shares

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