Avery Ltd offered for subscription on 1st April 2020 200000 equity shares of rs 10 each at par payable on application. The company received applications for issued shares by 30th April 2020 and shares were alloted on 15th May 2020.
Pass necessary journal entries in the books of the company
Dear Student,
Regards
| Date | Particulars | L.F | Debit | Credit |
| 2020 | ||||
| 30. April | Bank A/c Dr. (2,00,000 x 10) | 20,00,000 | ||
| To Equity Share Application and Allotment A/c | 20,00,000 | |||
| (Being Application money received. ) | ||||
| 15. May | Equity Share Application and Allotment A/c Dr. | 20,00,000 | ||
| To Equity Share Capital A/c | 20,00,000 | |||
| (Being amount transferred to share capital A/c) | ||||
Regards