
Question 16 Chapter 8 of +2-Part-1
16. (Advance Money Received and Interest on call in Advance) A company issued 25,000 equity shares of 10 each payable as follows :
On application Rs. 3; on allotment Rs. 5 and on call Rs. 2
The time gap between allotment and call is 2 months. Applications for 28,000 shares were received. Excess money received on applications was refunded. One shareholder paid call money on his 2,000 shares at the time of allotment. Interest on calls in advance is paid @ 12% p.a.
Pass entries in Journal.
The solution of Question 16 Chapter 8 of +2 Part-1: –
Journal |
|||||
Date | Particulars |
L.F. | Debit | Credit | |
a) | Bank A/c (28,000X3) | Dr. | 84,000 | ||
To Share Application A/c | 84,000 | ||||
(Being application money received on 28,000 share shares @ Rs. 3 per share) | |||||
b) | Share Application A/c | Dr. | 84,000 | ||
To Share capital A/c (25,000X3) | 75,000 | ||||
To Bank A/c (3,000X3) | 9,000 | ||||
(Being the transfer of app. Amount to Share cap. A/c) | |||||
c) | Share Allotment A/c (25,000X5) | Dr. | 1,25,000 | ||
To Share capital A/c | 1,25,000 | ||||
(Being allotment money due on 25,000 share @ Rs. 5 as per shares) | |||||
d) | Bank A/c (1,25,000+40,000) | Dr. | 1,29,000 | ||
To Share allotment A/c | 1,25,000 | ||||
To Call In Advance A/c (2,000X2) | 4,000 | ||||
(Being allotment money received in full ) | |||||
e) | Share final call A/c (25,000X2) | Dr. | 50,000 | ||
To Share capital A/c | 50,000 | ||||
(Being final call money due on 25,000 share @ 2 as per shares) | |||||
f) | Bank A/c (50,000-4,000) | Dr. | 46,000 | ||
Calls in advance A/c | Dr. | 4,000 | |||
To Share final Call A/c | 50,000 | ||||
(Being balance of final call money received & balance transferred to calls – in- advance A/c ) | |||||
g) | Interest on Calls in arrears A/c | Dr. | 80 | ||
To Bank A/c | 80 | ||||
(Being interest paid on call-in-advance ) | |||||
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
