Accounting for Shares

Company Accounts Part - I



Pro forma Journal Entries for accounting of issue of shares:
Date
Particulars
LF
Debit
Credit
1.
On receipt of application money:




Bank  A/c ... Dr.




To Equity Shares Application A/c




[Being application money received)








2.
Transfer of application money to share capital:




Equity Share application A/c .... Dr.




To Equity Share Capital A/c          




[Being application money transferred to Equity share capital]








3.
Allotment of shares is made:




Equity Share Allotment A/c .... Dr.




To Equity Share Capital A/c




[Being allotment money received]








4.
Amount Due on 1st Call:




Equity Share First Call A/c ..... Dr.




To Equity Share Capital A/c




[Being first call of Rs. ______ per share made)








5.
Receipt of first call money:




Bank A/c ..... Dr.




To Equity Share First Call A/c




[Being first call money received from shareholders]








6.
Receipt of first call money:




Bank A/c .... Dr.




To Equity Share First Call A/c




[Being first call money received from shareholders]








7.
Amount due on Second Call:




Equity Share Second Call A/c ...... Dr.




To Equity Share capital A/c




[Being second call of Rs. ______ per share made]








8.
On Receipt of Second Call Money:




Bank A/c .... Dr.




To Equity Share Second Call A/c




[Being money due on second call received]








9.
Amount due on third and Final call:




Equity Share Third and Final Call A/c




To Equity Share Capital A/c




[Being third and final call of Rs. _____ per share made)








10.
Receipt of Third and Final call money:




Bank A/c ..... Dr.




To Equity Share Third and Final Call A/c




[Being money due on Third and Final Call received from shareholders]