Entry for issue of shares

at the time of issue of shares company can collect share issue price either in lumpsum or in installment also.

if in lumpsum

1. on receipt of application money

BANK A/C                            DR.

        TO EQUITY SHARE APPLICATION MONEY

2. ON ALLOTTMENT OF SHARES

EQUITY SHARE APPLICATION MONEY    DR.

           TO EQUITY SHARE CAPITAL

if receipt share money in number of installments (like at the time of application, allottment and balance in further calls)

1. ON RECEIPT APPLICATION MONEY

BANK A/C                            DR.

        TO EQUITY SHARE APPLICATION MONEY

2. ON ALLOTTMENT OF SHARES

EQUITY SHARE APPLICATION MONEY    DR.

           TO EQUITY SHARE CAPITAL

3. ON CALL FOR ALLOTTMENT MONEY

EQUITY SHARE ALLOTTMENT A/C    DR.

           TO EQUITY SHARE CAPITAL

4. ON RECEIPT OF ALLOTTMENT MONEY

BANK    A/C                                     DR.

     TO EQUITY SHARE ALLOTTMENT A/C

5. ON CALL FOR FIRST AND FINAL CALL MONEY

EQUITY SHARE FIRST AND FINAL CALL A/C DR

    TO EQUITY SHARE CAPITAL A/C

6. ON RECEIPT OF FIRST AND FINAL CALL MONEY

BANK A/C    DR.

   TO EQUITY SHARE FIRST AND FINAL CALL A/C