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

Question 16 Chapter 8 of +2- Part
Q-16 - CH-8 - Usha +2 Book 2018 - Solution

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Question 16 Chapter 8 of +2-Part-1

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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.DebitCredit
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/cDr. 84,000 
 To Share capital A/c (25,000X3)   75,000
 To Bank A/c (3,000X3)   9,000
 (Being transfer of application money to share Capital A/c and Excess application money refunded)    
      
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 @ 5 per share)    
      
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 & on 2,000 shares call money received in advance)    
      
e)Share final call A/c (25,000X2)Dr. 50,000 
 To Share capital A/c   50,000
 (Being Final call due on 50,000 share @ Rs. 3 per share)    
      
f)Bank A/c (50,000-4,000)Dr. 46,000 
 Calls in advance A/cDr. 4,000 
 To Share final Call A/c   50,000
 (Being balance of Final call received and call in advance adjusted)    
      
g)Interest on Calls in advance A/cDr. 80 
 To Bank A/c   80
 (Being interest on call-in-advance 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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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