Share application money journal entries

why share applications money entry is not first due like  share allotment money entry  

Replies (2)
Quick Summary
This discussion explores the correct journal entries for share application money. It questions why these entries are often recorded differently to share allotment entries, particularly the 'Dr. Bank Cr. Application' step. The user suggests it might be possible to bypass the application entry and directly debit the bank and credit capital, especially since the exact recipient isn't known before allotment. However, the consensus leans towards the necessity of the application entry to track funds received before shares are officially issued and allocated.

Dr. Bank

Cr. Application

and 

Dr. Application

Cr. Capital

This application entry is a must because they issue in installments/calls. But I feel that it is not necessary to make an application entry and it can directly be like

Dr. Bank

Cr. Capital. 

Other calls can be recorded.

Before allotment of shares we don't know to whom due notice is to be sent so application can not be due as it is an offer

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