(Issue of Shares At Par, Fully Subscribed, Amount Payable in Lump Sum).
AD Deli Ltd. invited applications for 20,000 Equity Shares of Rs. 10 each at the issue price of Rs. 10. The amount payable along with application is Rs. 10. This issue was fully subscribed. Pass Journal entries for the above transactions and also prepare Balance Sheet of the Company.

Explanation

Note: As the issue price is payable in lump sum , i.e., in one instalment, the entry is passed through 'Equity Shares Application and Allotment Account'.