TPT Ltd. invited applications for issuing 1,00,000 equity shares of Rs

1.	TPT Ltd. invited applications for issuing 1,00,000 equity shares of Rs.10 each at a premium of Rs.3 per share. The whole amount was payable on application. The issue was over subscribed by 30,000 shares and allotment was made on pro-rata basis. Pass necessary journal entries in the books of the company.
Answer» (i) Dr. Bank A/C Rs. 16,90,000, Cr.Eq.share Application A/C Rs.16,90,000. (ii) Dr.Eq.Share Application A/C Rs.16,90,000, Cr.Eq. share Capital A/C Rs.10,00,000, Cr. Security premium A/C Rs.300,000, Cr. Bank A/C Rs.3,90,000.

TPT Ltd. invited applications for issuing 1,00,000 equity shares of Rs.10 each at a premium of Rs.3 per share. The whole amount was payable on application. The issue was over subscribed by 30,000 shares and allotment was made on pro-rata basis. Pass necessary journal entries in the books of the company.

Answer»

(i) Dr. Bank A/C Rs. 16,90,000, Cr.Eq.share Application A/C Rs.16,90,000.

(ii) Dr.Eq.Share Application A/C Rs.16,90,000, Cr.Eq. share Capital A/C Rs.10,00,000,

Cr. Security premium A/C Rs.300,000, Cr. Bank A/C Rs.3,90,000.