Question 19 A Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 19 A Chapter 8 of +2-Part-1

19A. (Calls in Arrear and Calls in Advance) A Ltd. issued 20,0000 equity shares of Rs. 10 each at a premium of 10% payable Rs. 2 on Application, Rs. 4 on Allotment (Including premium); Rs. 3 on first call and Rs. 2 on Final call . All the shares were duly subscribed, allotted and both the calls were made.
A holder of 400 shares did not pay final call while another holder of 500 shares paid the entire sum due on allotment.
Pass journal entries and prepare Balance Sheet.

The solution of Question 19 A Chapter 8 of +2 Part-1: -

Journal

Date	Particulars		L.F.	Debit	Credit
a)	Bank A/c	Dr.		40,000
	To Equity Share application A/c				40,000
	(Being application money received on 20,000 shares @ Rs. 2 per share)
b)	Equity Share Application A/c	Dr.		40,000
	To Equity Share capital A/c				40,000
	(Being application money transferred to Share cap. A/c)
c)	Equity Share Allotment A/c	Dr.		80,000
	To Equity Share capital A/c				60,000
	To Securities premium reserve A/c				20,000
	(Being allotment money due on 1,25,000 share @ Rs.7 as per shares)
d)	Bank A/c	Dr.		82,500
	To Equity Share allotment A/c				80,000
	To Calls in advance A/c				2,500
	(Being allotment money received along with calls in advance on 500 share @ Rs.5 each )
e)	Equity Share first Call A/c	Dr.		60,000
	To Equity Share capital A/c				60,000
	(Being first call money due on 20,000 shares @ 3 per share & call in advance on shares adjusted)
f)	Bank A/c	Dr.		58,500
	Calls in advance A/c	Dr.		1,500
	To Share First Call A/c				60,000
	(Being first call money received on 19,500 shares & call in advance on 500 shares adjusted )
g)	Equity Share final Call A/c	Dr.		40,000
	To Equity Share capital A/c				40,000
	(Being final call money due)
h)	Bank A/c	Dr.		38,200
	Calls in advance A/c	Dr.		1,000
	Calls in Arrear A/c	Dr.		800
	To Share Final Call A/c				40,000
	(Being final call money received 19,500 shares & call in advance on 500 shares adjusted)

A Ltd. Balance Sheet

	Particulars	Note no/.	Current year
i)	Equity & Liability
	Shareholders fund
	Share Capital	1	1,99,200
	Reserve & Surplus	2	20,000
	Total		2,19,200
ii)	Assets
	Current Assets
	Cash & Cash equivalent	3	2,19,200
	Total		2,19,200

Notes to Accounts:-

	Particulars	Details	Amount
1)	Shared capital
	Authorized capital
	Issued capital
	20,000 Equity shares of Rs. 10 each		2,00,000
	Subscribed capital
	(i) Subscribed & fully Paid up
	19,600 shares of Rs. 10 each full called & paid		1,96,000
	(ii) Subscribed & not fully Paid up
	400 shares of Rs. 10 each fully called	4,000
	Less : Calls in Arrears (400 X 2)	800	1,99,200
2)	Reserve & Surplus
	Securities Premium Reserve		20,000
3)	Cash & Cash equivalent
	Cash at Bank		2,19,200

Called up Capital : It has already been explained that it is not necessary that a company calls the entire amount of nominal (face) value of share by the close of accounting year . In such cases , called up portion of share capital is shown in the balance sheet as subscribed capital but fully paid .