Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Journal entries for share capital

2816 views

Save Share

Join Us Follow Us Add as Source

Ks

120 Points Posted on 02 February 2022

journal entries for share application money received of 2000000

Replies (8)

Quick Summary

This discussion covers the accounting treatment for share capital, specifically detailing the journal entries for receiving share application money and its subsequent transfer to the Share Capital account. It also addresses a scenario in an optical firm where a customer refuses to purchase fitted spectacles, explaining the process of recording a sales return and the potential sale of the item as scrap.

prasad Nilugal

GST Practitioner & Accounts

8990 Points Posted on 02 February 2022

Entries are as follows

Bank A/c Dr 20,00,000/-
To Share application money A/c Cr 20,00,000/-
( Being share application and allotment money
received )

share application money received transfer to Share Capital entry

Share application money A/c Dr 20,00,000/-
To Share Capital A/c Cr 20.00.000/-
( Being share application money transfer to Share Capital )

Ks

120 Points Posted on 02 February 2022

Accounting for optical firms

A customer select a spectacle frame worth Rs 2000 and a numbered glasses of Rs 1500 after complete fitting of glasses customer refuses to buy it what are the accounting treatment for it

prasad Nilugal

GST Practitioner & Accounts

8990 Points Posted on 02 February 2022

In the books of optical Firm

If the Invoice was issued of Rs 3500/- earlier , then same will be treated as sales return after refusal by the customer , so you have pass credit Note .
Entry will be

Sales return A/c Dr 3500/-
To Trade Debtor's A/c Cr 3500/-
( Being spectacle return by the Customer )

If GST charge earlier in the Invoice then CGST &SGST account will be debited in above entry.