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Que : 86. Give the journal entries of issue of shares.
Answer:

the journal entries with regard to allotment of shares are as follows-

for transfer of aplication money

share application a/c  dr...

      To share capital a/c

(aplication money on --share allotted transferred to share capital)

 for money refunded on rejected application

share application a/c   dr.

    To bank a/c

(application money returned on rejected application for -- shares)

for amount due to allotment

 share allotment a/c   dr.

      To share capital a/c

for adjustment of excess application money

share application a/c

    To share allotment a/c

(allotment money on- shares @rs-per shares adjusted to the amount due on allotment)

for receipt of allotment money

bank a/c    dr.

   To share allotment a/c

(allotment money received on --shares@ rs.--per share combined account.)