Mohini Company Limited issued 25,000 equity shares of ₹ 100 each payable as follows:
On Application ₹ 20
On Allotment ₹ 30
On First call ₹ 20
On Second and Final call ₹ 30
Applications were received for 22,000 equity shares and allotment of shares were made to them.
All money was

Question

Mohini Company Limited issued 25,000 equity shares of ₹ 100 each payable as follows:
On Application ₹ 20
On Allotment ₹ 30
On First call ₹ 20
On Second and Final call ₹ 30
Applications were received for 22,000 equity shares and allotment of shares were made to them.
All money was received by the company.
Pass Journal Entries in the books of Mohini Co. Ltd.

Accepted Answer

>

> [!TLDR]
> Only 22,000 of the 25,000 offered shares were applied for and allotted, so all working is on **22,000 shares of ₹100 each**. As money is called and received at each stage, we (1) receive it into Bank and (2) transfer it to Equity Share Capital. All money was received, so there are no calls-in-arrears.
>
> **Step 1 — Per-share and total amounts (on 22,000 shares)**
>
> | Stage | Per share (₹) | Total (₹) |
> | --- | --- | --- |
> | Application | 20 | 4,40,000 |
> | Allotment | 30 | 6,60,000 |
> | First Call | 20 | 4,40,000 |
> | Second & Final Call | 30 | 6,60,000 |
> | **Total** | **100** | **22,00,000** |
>
> **Step 2 — Journal Entries in the books of Mohini Co. Ltd.**
>
> | No. | Particulars | Dr (₹) | Cr (₹) |
> | --- | --- | --- | --- |
> | 1 | Bank A/c ................................ Dr | 4,40,000 | |
> |  |   To Equity Share Application A/c | | 4,40,000 |
> |  | *(Application money on 22,000 shares @ ₹20)* | | |
> | 2 | Equity Share Application A/c ......... Dr | 4,40,000 | |
> |  |   To Equity Share Capital A/c | | 4,40,000 |
> |  | *(Application money transferred to capital)* | | |
> | 3 | Equity Share Allotment A/c ........... Dr | 6,60,000 | |
> |  |   To Equity Share Capital A/c | | 6,60,000 |
> |  | *(Allotment due on 22,000 shares @ ₹30)* | | |
> | 4 | Bank A/c ................................ Dr | 6,60,000 | |
> |  |   To Equity Share Allotment A/c | | 6,60,000 |
> |  | *(Allotment money received)* | | |
> | 5 | Equity Share First Call A/c .......... Dr | 4,40,000 | |
> |  |   To Equity Share Capital A/c | | 4,40,000 |
> |  | *(First call due on 22,000 shares @ ₹20)* | | |
> | 6 | Bank A/c ................................ Dr | 4,40,000 | |
> |  |   To Equity Share First Call A/c | | 4,40,000 | …

Term	Meaning
At par	Issue price equals the face (nominal) value
At premium	Issue price is more than the face value
At discount	Issue price is less than the face value
At loan	Not a mode of issuing shares at all
…

Stage	Per share (₹)	Total (₹)
Application	20	4,40,000
Allotment	30	6,60,000
First Call	20	4,40,000
Second & Final Call	30	6,60,000
Total	100	22,00,000

No.	Particulars	Dr (₹)	Cr (₹)
1	Bank A/c ................................ Dr	4,40,000
	To Equity Share Application A/c		4,40,000
	(Application money on 22,000 shares @ ₹20)
2	Equity Share Application A/c ......... Dr	4,40,000
	To Equity Share Capital A/c		4,40,000
	(Application money transferred to capital)
3	Equity Share Allotment A/c ........... Dr	6,60,000
	To Equity Share Capital A/c		6,60,000
	(Allotment due on 22,000 shares @ ₹30)
4	Bank A/c ................................ Dr	6,60,000
	To Equity Share Allotment A/c		6,60,000
	(Allotment money received)
5	Equity Share First Call A/c .......... Dr	4,40,000
	To Equity Share Capital A/c		4,40,000
	(First call due on 22,000 shares @ ₹20)
6	Bank A/c ................................ Dr	4,40,000
	To Equity Share First Call A/c		4,40,000

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