Question 11 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 11 Chapter 8 of +2-A – T.S. Grewal 12 Class

By Shubham Sharma 12 Min Read December 20, 2020

Question No.11 - Chapter No.8 - T.S. Grewal +2 Book 2019-Solution-min-min

Question 11 Chapter 8 of +2-A

Table of Contents

The solution of Question 11 Chapter 8 of +2-A: –

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

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

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.

The solution of Question 11 Chapter 8 of +2-A: –

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

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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