Question

The authorised capital of Rs.16,00,000 of XYZ Ltd. is divided into 1,60,000 Equity Shares of Rs.10 each. Out of these shares, 80,000 Equity Shares were issued to the public. The full nominal value is payable on application. All the shares were subscribed by the public and total amount was paid for. Give necessary Journal entries in the books of the company.

Answer 1

Authorised capital 1,60,000 equity shares of 10 each Issued and subcried capital 80,000 equity shares