Question 16 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 16 Chapter 8 of +2- Part

Question 16 Chapter 8 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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

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 16 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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