Question 14 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 14 Chapter 8 of +2-Part-1

14. (Call in Arrears) Gujrat Steels Ltd., invited applications for 60,000 equity shares of Rs. 10 each. Amount being payable Rs. 3 on application : Rs. 4 on allotment and balance on final call. Applications for 50,000 shares were received. Expenses on issue were Rs. 4,000. Final call was not received on 500 shares. Pass entries in Journal.

The solution of Question 14 Chapter 8 of +2 Part-1: -

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Journal

Date	Particulars		L.F.	Debit	Credit
a)	Bank A/c	Dr.		1,50,000
	To Share Application A/c				1,50,000
	(Being application money received on 50,000 share shares @ Rs. 3 per share)
b)	Share Application A/c	Dr.		1,50,000
	To Equity Share capital A/c				1,50,000
	(Being the transfer of app. Amount to Share cap. A/c)
c)	Share Allotment A/c	Dr.		2,00,000
	To Share capital A/c				2,00,000
	(Being allotment money due on 50,000 share @ 4 as per shares)
d)	Bank A/c	Dr.		2,00,000
	To Share allotment A/c				2,00,000
	(Being allotment money received in full )
e)	Share final Call A/c	Dr.		1,50,000
	To Share capital A/c				1,50,000
	(Being final call money due on 50,000 share @ 3 as per shares)
f)	Bank A/c	Dr.		1,48,500
	Calls in arrears A/c	Dr.		1,500
	To Share final Call A/c				1,50,000
	(Being final call money received & balance transferred to calls – in arrears A/c )
g)	Expenses on Issue A/c	Dr.		4,000
	To Bank A/c				4,000
	(Being share issue expenses paid )