question_answer

Chanchal Ltd, dealing in aero-space fuel, issued 2,00,000 equity shares of Rs. 20 each,  at a premium of Rs. 5 per share, payable as Rs. 8 per share on application Rs. 10 per share on allotment (including premium) Rs. 7 per share on first and final call The issue was fully subscribed. All the amounts were duly received with the exception of 10,000 shares held by Rajeev and Bhaskar, who failed to pay the first and final call. Give the journal entry. Also identify the value being violated by the shareholders.

Answer:

                                                            JOURNAL

Date	Particulars		LF	Amt (Dr)	Amt (Cr)
	Bank A/c \[(2,00,000\times 8)\]	Dr		16,00,000
	To Equity Share Application A/c				16,00,000
	(Being the application money received on shares)
	Equity Share application A/c	Dr		16,00,000
	To Equity Share Capital A/c				16,00,000
	(Being the transfer of application money to equity share capital account on allotment)
	Equity Share Allotment A/c \[(2,00,000\times 10)\]	Dr		20,00,000
	To Equity Share Capital A/c \[(2,00,000\times 5)\]				10,00,000
	To Securities Premium Reserve A/c \[(2,00,000\times 5)\]				10,00,000
	(Being the allotment money due)
	Bank A/c	Dr		20,00,000
	To Equity Share  Allotment A/c				20,000
	(Being the receipt of @ Rs. 10 per share on 2,00,000 equity shares)
	Equity Share First and Final Call A/c \[(2,00,000\times 7)\]	Dr		14,00,000
	To Equity Share Capital A/c				14,00,000
	(Being the amount due on 2,00,000 share @ Rs. 7 per share)
	Bank A/c \[(1,90,000\times 7)\]	Dr		13,30,000
	To Equity Share First and Final Call A/c				13,30,000
	(Being the receipt of @ Rs. 7 per share on 1,90,000 equity shares)