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

Question 14 Chapter 8 of +2- Part

Question 14 Chapter 8 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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: –

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 )        
         

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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

2 Book 1 min - Question 14 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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