Journal entries for accounting transactions provide a comprehensive overview of how to record various financial activities. This document includes detailed examples of share applications, allotments, and debenture transactions, making it essential for accounting students and professionals. It covers key concepts such as share capital, call money, and interest calculations, offering practical insights for real-world applications. Ideal for those studying accounting principles or preparing for exams, this resource serves as a valuable reference for understanding journal entries in financial accounting.

Key Points

  • Explains the process of recording share applications and allotments in accounting journals.
  • Covers debenture transactions, including application money and interest calculations.
  • Details the treatment of forfeited shares and their impact on capital reserves.
  • Includes examples of journal entries for various accounting scenarios, enhancing practical understanding.
Keertimathi M P
5 pages
Language:English
Type:Notes
Accounting
Keertimathi M P
5 pages
Language:English
Type:Notes
Accounting
299
/ 5
Company ac inevitable Journals
Shares
1 Bank Ac Dr
TO Share application Ac
(being application money received)
2 Share Application Ac Dr
TO Share Capital Ac
(being application money transfer to
share capital)
3 Share Applicaton Ac Dr.
TO Bnak Ac
(bing application money refunded)
4
Share allotement Ac
Dr
To Share Capital Ac
(being allotment made)
4 (1) Share allotement Ac Dr
To Share Capital Ac
To Share Premium Ac
(being allotment made with premium)
5 (1) Bank Ac Dr
To Share Allotment Ac
(being allotment made _____ share allotment
money due)
5 (2) Bank Ac Dr
Allotment in Arrear ac Dr
To Share Allotment Ac
(being allotment made _____ share allotment
money due)
5 (3) Bank Ac Dr
To Share Allotment Ac
To Call in Advance Ac
(being allotment made _____ share call
money received in advanc
6 Share Call Ac Dr
To Share Capital Ac
(being call money due)
6 (1) Bank Ac Dr
Call in arrear ac Dr
To Share Call Ac
(being call money received)
6 (2) Bank Ac Dr
Call in advance Dr
To Share Call Ac
(being advance money adjusted with
share call due
7. Interest on call in advance Ac Dr
To Share holder Ac
(being interest calculated on call in
advance)
8 Share holder ac Dr
to Bank ac
(being interest paid for call in
advance)
9. Share holder ac Dr
To Interest on call in arrear ac
(Being interest calculated for call in arrear)
10
Bank ac Dr
To call in arrear ac
To Share holder ac
(Being interest received with call in arrear )
11
1 Share Capital ac Dr
To Share Allotment ac
To Share Call ac
To Share forfeited ac
(Being pending dues from allotment or, share
call are fofeited)
11
2
Share premium ac Dr
To Share Allotment ac
To Share Call ac
To Share forfeited ac
(Being pending dues from allotment or, share
call and premium amount are fofeited)
12
Bank ac Dr
Fofeited share ac Dr
To Share Capital ac
(Being forfeited share reissued with discount
13
Forfieted Share ac Dr
to Capital Reserve ac
(Being profit for forfeited share transfer to
reserve ac)
issue of share for consideration otherthan cash
14
Asset ac Dr
to share holder ac
(Being asset purchase consideration by share)
15
Share holder ac Dr
to share capital ac
(Being asset purchase consideration by share)
Debentures
1
Bank Ac
Dr
TO Debenture application Ac
(being application money received)
2 Debenture Application Ac Dr
TO __% Debenture Ac
(being application money transfer to
_% debenture Ac)
3 1 Debenture Allotment Ac Dr.
TO Debenture AcAc
(being Debenture Allotment money due)
3
2
Debenture
allotement Ac
Dr
Discount on issue of Debenture ac Dr
To Debenture ac
(being Debenture allotment with ___%
Discount made)
3 3 Debenture allotement Ac Dr
To Debenture ac
To Debenture redemptikon premium ac
(being Debenture allotment with ___%
premium
3 4 Debenture allotement Ac Dr
Discount on issue of Debenture ac Dr
Loss on issue debenture ac Dr
To Debenture ac
To Debenture redemption premium ac
(being Debenture allotment with ___%
Discount and _ % premium
4 Bank Ac Dr
To Debenture Allotment Ac
(being debenture allotment money received)
5 Debenture Application Ac Dr
To Bank Ac
(being debtenture applicaton rejected and
refuned)
6 Debenture Suspense Ac Dr
To Debenture Ac
(being Debenutre issue collaterally)
7 Fixed Asset Ac Dr
To Vendor Ac
(being fixed asset purchased from
vendor)
8 Vendor Ac Dt
Discount of Debenture ac Dr
/ 5
End of Document
299

You May Also Like

FAQs

What are the journal entries for share application money received?
The journal entry for share application money received is recorded as follows: Debit the Bank Account and credit the Share Application Account. This entry reflects the receipt of application money from shareholders, indicating an increase in cash assets and a corresponding liability until the shares are formally allotted.
How is share allotment recorded in journal entries?
Share allotment is recorded by debiting the Share Allotment Account and crediting the Share Capital Account. If there is a premium on the shares, the entry will also include a credit to the Share Premium Account. This process acknowledges that the shares have been allotted to shareholders and recognizes the capital raised through this allotment.
What entries are made for call money due on shares?
When call money is due on shares, the entry involves debiting the Share Call Account and crediting the Share Capital Account. This reflects that the company is entitled to receive the call money from shareholders. If the call money is received in advance, it is recorded by debiting the Bank Account and crediting the Share Call Account.
How are forfeited shares accounted for in journal entries?
Forfeited shares are accounted for by debiting the Share Capital Account and crediting the Share Allotment Account, Share Call Account, and Share Forfeited Account. This entry indicates that the company has forfeited shares due to non-payment of dues. The amounts forfeited can also be transferred to a Capital Reserve Account, reflecting a gain from the forfeited shares.
What is the journal entry for issuing shares for consideration other than cash?
When shares are issued for consideration other than cash, the Asset Account is debited, and the Shareholder Account is credited. This entry signifies that the company has received assets in exchange for shares, thereby increasing its asset base while simultaneously increasing its equity through the issuance of shares.
How is interest on call in advance recorded in journal entries?
Interest on call in advance is recorded by debiting the Interest on Call in Advance Account and crediting the Shareholder Account. This entry reflects the calculation of interest owed to shareholders who have paid their call money in advance, recognizing the company's obligation to pay this interest.
What entries are made for the redemption of preference shares?
For the redemption of preference shares, the entry involves debiting the Redemption of Preference Share Account and crediting the Preference Shareholder Account. If shares are issued for redemption, the Bank Account is debited, and the Share Capital Account is credited. This reflects the company's obligation to repay the preference shareholders upon redemption.

Related