| Transaction | Entries |
| Share application money is received | Bank A/c Dr.
To Share Application A/c (Being receipt of share application money as per share ₹ ……….. The share application money received)
Received amount = Received Applications × Called up amount per share with application |
| When the shares are alloted | Share Application A/c Dr.
To Share capital A/c
(Alloted share × Call money per share)
To Bank A/c
(Non-alloted share x Called up amount per share)
(Being on the basis of allotment of shares, share application amount transferred to share capital and non-alloted share application money is refunded) |
| When the amount is called up at the time of allotment | Share allotment A/c Dr.
To Share capital A/c
(Being amount due on allotment on ………… shares at the rate of ₹……. per share)
Called up amount = Alloted shares x Amount called per share at the time of share allotment |
| When the amount due on allotement is received | Bank A/c Dr.
To Share allotement A/c
(Being amount received on allotment on ……………. shares at the rate of ₹ per share)
Received Amount = Total amount called up at the time of share allotment – Not received amount of share allotment from shareholders |
| When share instalment amount called up | Share first & final call A/c Dr.
To Share capital A/c
(Being First/Final call due on……….. shares at the rate of ₹…….. per share)
Called up amount = Alloted shares x Amount called up per share the time of shares first/final call. |
| When amount received on call | Bank A/c Dr.
To Share first & final call A/c
(Being First/Final call due on ……….. share at the rate of ₹……. per share)
Amount received = Total amount call up at the time of first & final call – Not received amount on share first & final call from the share holders. |
| When Shares Forfeited : | Share capital A/c Dr.
(No. of forfeited shares x Called up amt. per share up to the date of forfeiture)
To Share forfeited A/cl To Share Allotment Amount not received To Share first & of forfeited shares final call A/c
(Being shares are forfeited for non-payment of allotment/first & final call money) |
| When forfeited share are reissued | Bank A/c Dr.
(No. of reissue shares x Amount per share of reissue )
Share forfeiture A/c Dr.
(No. of reissue shares x Amount of discount on per share)
To Share capital A/c
(No. of share reissue x Amount of call money of shares)
(Being out of forfeited shares reissued at ₹…………. per share) |
When share issued at a premium :
When amount of Premium called up with the application of share : | (i) Bank A/c Dr.
To Share Application A/c
(Amount including premium)
(Being receipt of share application money on share at ₹……. per share ) |
(ii) Share Application A/c Dr.
To Share capital A/c To Securities premium A/c
(Being transfer of shares application money in respect of……… equity shares alloted to share capital account and…….. ₹ to securities premium A/c) |
| When amount of premium called up with the allotment of share : | (i) Share allotment A/c Dr.
To Share capital A/c To Securities premium A/c
(Being allotment money of ₹………. per share on share capital and ?……. per share on premium is due on………. equity share alloted) |
(ii) Bank A/c Dr
To Share allotment A/c
(Being receipt of amount of equity share allotment money on …………. shares at ₹………. per share) |
| When the amount of premium is called with share call money | (i) Share cedi A/c Dr.
To Share capital A/c To Securities Premium A/c
(Being call of ?…… (including premium of ₹……… per share due on………… shares) |
(ii) Bank A/c Dr
To Share call A/c
(Being receipt of share call amount on ………………. shares) |
| When share issued with Premium are forfeited | Share capital A/ c Dr.
(No. of forfeited share x per share called up money)
Securities premium A/c Dr.
(No. of forfeited shares x per share called up but not received premium amount)
To Share forfeiture A/c
(Amount received on forfeited share except premium)
To Share allotment A/c To Share first/final call A/c
(Not received amount on forfeited shares) • If the premium amount has been received on the forfeited shares then donot make any note of it, but if there is a nominal premium on such a share then the securities premium account will be debited at the time of forfeiture) |
| If all the forfeited shares are reissued & the balance of share forfeiture account is transferred to capital reserve account. | Share forfeited A/c Dr.
To Capital reserve A/c
(Being balance of the share forfeited account will be transferred to capital reserve account) |
