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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question 11 Chapter 8 of +2-A
11. Seema ltd. Offered for subscription 10,000 shares of Rs 25 each payable Rs 5 per share on the application, Rs 10 per share on the allotment ( including Rs 5 per share as premium )Rs 5 per share as the first call on the shares and the balance in two equal amounts at an interval of three months. All the shares were applied for and allotted .all the money was received except the second call and final call on 200 and 400 shares respectively.
Pass the entries in the company’s journal , cash book and the ledger, also show the company’s balance sheet on completion of the above transactions.
Prepare cash book and pass necessary journal entries to record the above issue of shares and show how the share capital will appear in the balance sheet.
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| Bank A/c | Dr. | 75,000 | |||
| To equity share application A/c | 75,000 | ||||
| (Being the application money received ) | |||||
| Equity Share application A/c | Dr | 75,000 | |||
| To Equity share capital A/c | 75,000 | ||||
| (Being application money transferred to equity share capital ) | |||||
| Share allotment A/c | Dr | 1,00,000 | |||
| To Share capital A/c | 50,000 | ||||
| To Equity share premium A/c | 50,000 | ||||
| (Being the allotment money due ) | |||||
| Cash A/c | Dr | 1,00,000 | |||
| To Equity share allotment A/c | 1,00,000 | ||||
| (Being application money transferred to equity share capital ) | |||||
| Equity Share first call A/c | Dr | 50,000 | |||
| To Equity Share capital A/c | 50,000 | ||||
| (Being the first call money due ) | |||||
| Cash A/c | Dr | 50,000 | |||
| To Equity Share first call A/c | 50,000 | ||||
| (Being first call money received ) | |||||
| Equity Share second call A/c | Dr | 50,000 | |||
| To Equity Share capital A/c | 50,000 | ||||
| (Being the second call money due ) | |||||
| Cash A/c | Dr | 49,000 | |||
| Calls in arrear A/c | Dr | 1,000 | |||
| To Equity share second call A/c | 50,000 | ||||
| (Being second call money received and money of 200 shares were not received capital ) | |||||
| Equity Share final call A/c | Dr | 50,000 | |||
| To Share capital A/c | 50,000 | ||||
| (Being the second call money due ) | |||||
| Cash A/c | Dr | 48,000 | |||
| Calls in arrear A/c | Dr | 2,000 | |||
| To Equity share final call A/c | 50,000 | ||||
| (Being final call money received and money of 400 shares were not received. ) | |||||
| Dr. | Cash Book | Cr. | |||||
| Date | Particulars |
L.F. | Amount | Date | Particulars |
L.F. | Amount |
|---|---|---|---|---|---|---|---|
| To equity share application a/c | 50,000 | ||||||
| To equity share allotment a/c | 1,00,000 | ||||||
| To equity share first and final call a/c | 49,000 | ||||||
| To equity share second call a/c | 48,000 | ||||||
| By Balance C/d | 2,97,000 | ||||||
| 2,97,000 | 2,97,000 | ||||||
| Dr. | Equity share capital A/c | Cr. | |||||
| Date | Particulars |
L.F. | Amount | Date | Particulars |
L.F. | Amount |
|---|---|---|---|---|---|---|---|
| By equity share application a/c | 50,000 | ||||||
| By equity share allotment a/c | 50,000 | ||||||
| By equity share first, call a/c | 50,000 | ||||||
| By equity share second call a/c | 50,000 | ||||||
| By equity share final a/c | 50,000 | ||||||
| To Balance C/d | 2,50,000 | ||||||
| 2,50,000 | 2,50,000 | ||||||
| Dr. | Equity share application A/c | Cr. | |||||
| Date | Particulars |
L.F. | Amount | Date | Particulars |
L.F. | Amount |
|---|---|---|---|---|---|---|---|
| To equity share capital A/c | 50,000 | By cash A/c | 50,000 | ||||
| 50,000 | 50,000 | ||||||
| Dr. | Equity Share allotment A/c | Cr. | |||||
| Date | Particulars |
L.F. | Amount | Date | Particulars |
L.F. | Amount |
|---|---|---|---|---|---|---|---|
| To equity share capital A/c | 50,000 | By cash A/c | 50,000 | ||||
| 50,000 | 50,000 | ||||||
| Dr. | Equity share first call A/c | Cr. | |||||
| Date | Particulars |
L.F. | Amount | Date | Particulars |
L.F. | Amount |
|---|---|---|---|---|---|---|---|
| To equity share capital A/c | 50,000 | By cash A/c | 50,000 | ||||
| 50,000 | 50,000 | ||||||
| Dr. | Equity Shares second call A/c | Cr. | |||||
| Date | Particulars |
L.F. | Amount | Date | Particulars |
L.F. | Amount |
|---|---|---|---|---|---|---|---|
| To equity share capital A/c | 50,000 | By cash A/c | 49,000 | ||||
| By call in arrear A/c | 1,000 | ||||||
| 50,000 | 50,000 | ||||||
| Dr. | Equity share final call A/c | Cr. | |||||
| Date | Particulars |
L.F. | Amount | Date | Particulars |
L.F. | Amount |
|---|---|---|---|---|---|---|---|
| To equity share capital A/c | 50,000 | By cash A/c | 48,000 | ||||
| By call in arrear A/c | 2,000 | ||||||
| 50,000 | 50,000 | ||||||
| Dr. | Calls in arrear A/c | Cr. | |||||
| Date | Particulars |
L.F. | Amount | Date | Particulars |
L.F. | Amount |
|---|---|---|---|---|---|---|---|
| By equity share final call A/c | 1,000 | ||||||
| By Equity share final call A/c | 2,000 | ||||||
| By Balance C/d | 3,000 | ||||||
| 3,000 | 3,000 | ||||||
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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