12 June 2012
when the company issues shares,then the entries passed are
1. for receipt of applications bank a/c....dr to app a/c
2. for transferring app money to share capital a/c app a/c......dr to share capital a/c
3. for the allotment due allotment a/c....dr to share capital a/c
4. for allotment money received bank a/c.....dr to allotment a/c friends.....my query here is
why is there a need to pass the 3rd entry i.e., due entry we can pass the entries when we receive the allotment money...like this bank a/c.....dr to allotment a/c later transferring to share capital a/c........please reply
CAclubindia
