Page 331 - VIRANSH COACHING CLASSES

Solution :
Journal Entries in the Books of Sanika 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 20,000 Equity shares @
` 2 per share received)
2. Equity Share Application A/c .............................Dr. 40,000
To Equity Share Capital A/c 20,000
To Equity Share Allotment A/c 20,000
(Being application money on 10,000 Equity shares
transferred to equity share capital and application
money on 10000 equity shares adjusted against share
allotment A/c)
3. Equity Share Allotment A/c ................................Dr. 50,000
To Equity Share Capital A/c 50,000
(Being allotment money on 10,000 equity shares @ `
5 per share due)
4. Bank A/c .............................................................Dr. 30,000
To Equity Share Allotment A/c 30,000
(Being share allotment money on 10,000 equity
shares after adjusting excess application money)
5. Equity share First and Final Call A/c .................Dr. 30,000
To Equity Share Capital A/c 30,000
(Being Equity share first & Final Call on 10,000 shares
@ ` 3 per share due)

6. Bank A/c .............................................................Dr. 30,000
To Equity Share First & Final Call A/c 30,000
(Being Equity share first & Final call Money received)
Note - Company has issued 10000 shares to the public, but applications were received for 20000
shares i.e. excess applications for 10000 shares.

Working Note No. 1 -
Total Application money received 20000 shares @ ` 2 ` 40,000
Less : Application money on 10000 share @ ` 2 which were

issued to public ` 20,000
` 20,000
Excess Application money received

Therefore, excess application money received on 10,000 equity shares @ ` 2 per share adjusted with
allotment money.

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