Share application

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sir

I want to know that a person purchase share rs. 10 lac company return rs. 10 lac after 2 years what is accounting entry

Replies (1)

Dear Munna

Ypur question is not clear, But still as per my understanding .....................

Accounting entries in the books of companies -

(1) When company received the money for Share -

Bank A/c -------------------------- Dr.               10 Lacs

To  Share Application money                                     10 Lacs

 

(2) when Company issue share

Share Application maney A/c ---------------------- Dr.    10 lacs

To Share Capital A/c                                                                10 Lacs

 

Note - If the date of issue and cash/ Bank received is the same in such case you case pass the one entry instead of above two entry ...............

Bank A/c -------------------------------- Dr.         10Lacs

To Share capital                                                             10 lacs

 

 

if anything further required please let me know i will try my best to resolve the same.

 

thanks


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