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TPT Ltd. invited applications for issuing 1,00,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share. The whole amount was payable on application. The issue was over subscribed by 30,000 shares and allotment was made on pro-rata basis. Pass necessary journal entries in the books of the company.

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Bank A/C...Dr.(130000 x 13) Rs 16,90,000 To Share Application A/C Rs 16,90,000 (Being application money received) Share Application A/C.......Dr. Rs 16,90,000 To Share Capital A/C Rs 10,00,000 To Securities Premium Reserve Rs 3,00,000 To Bank A/C...
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Bank A/C...Dr.(130000 x 13)         Rs 16,90,000

To Share Application A/C              Rs  16,90,000

(Being application money received)

Share Application A/C.......Dr.        Rs  16,90,000

To Share Capital A/C                     Rs  10,00,000

To Securities Premium Reserve    Rs   3,00,000

To Bank A/C                                  Rs   90,000

(Being application money transferred to share capital,Securities premium reserve and excess money was refunded).

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