Question 38 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 38 Chapter 8 of +2-A

38. Better prospect ltd. Acquired land costing Rs 1,00,000 and in the payment allotted 1000 equity shares of Rs 100 each as fully paid. Further , the company issued 4000 equity shares for subscription payable as follows : Rs 30 on application ; Rs 30 on allotment ; Rs 40 on first and final call .
Application were received for all shares which were allotted . All the money was received except the call on 200 shares.

Pass journal entries and prepare balance sheet in the company’s book.

The solution of Question 38 Chapter 8 of +2-A: - 

Date	Particulars		L.F.	Debit	Credit
	Land A/c	Dr		1,00,000
	To Share capital A/c				1,00,000
	(Being assets and liabilities purchased from the Better prospect. )
	Bank A/c			1,20,000
	To Equity share application A/c				1,20,000
	(Being the application money received )				8,500
	Equity Share application A/c	Dr		1,20,000
	To Equity Share capital A/c				1,20,000
	(Being application money transferred to equity share capital )
	Equity Share allotment A/c	Dr		1,20,000
	To Share capital A/c				1,20,000
	(Being the allotment money due )
	Bank A/c	Dr		1,20,000
	To Equity Share allotment A/c				1,20,000
	(Being application money transferred to equity share capital )
	Share first and final call A/c	Dr		1,60,000
	To Share capital A/c				1,60,000
	(Being the first call money due )
	Bank A/c	Dr		1,52,000
	Calls in arrear A/c	Dr		8,000
	To Share first and final call A/c				1,60,000
	(Being first and final call money received with premium)

 

Equity share capital A/c		Cr.
Particulars	Details	Amount
Share capital
Authorized capital
4000 Equity share of Rs 100 each		4,00,000
Issued capital
4000 equity shares of Rs 100 each		4,00,000
Subscribed capital
Subscribed and fully paid-up
1000 Equity shares of Rs 100 each
Allotted shares as payment of purchased land	1,00,000
4000 Equity shares of Rs 100 each
On application (4000 *Rs 30 each )	1,20,000
On allotment (8000*Rs 30 each )	1,20,000
On first and final call (8000 *Rs 40 each)- calls in arrear (200* Rs 40 each )	1,52,000	4,92,000
share capital		4,92,000

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication