Question 17 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 17 Chapter 8 of +2-A – T.S. Grewal 12 Class

By Shubham Sharma 7 Min Read December 20, 2020

Question No.17 - Chapter No.8 - T.S. Grewal +2 Book 2019-Solution-min-min

Question 17 Chapter 8 of +2-A

Table of Contents

The solution of Question 17 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)

17. Arti ltd. Offered for subscription 20,000 shares of Rs 20,000 of 10 each payable Rs 3 on the application , Rs 5 on allotment and balance on first and final call. The application was received for 30,000 shares. Letters of regret were issued to applicants for 5000 shares and their applications money was refunded. Application money refunded. Application money for other 5000 shares was applied towards the payment for allotment money. The balance of allotment money was also received in due time. The company didn’t make the first and final call.
You are preparing the journal, cash book ledger accounts and ‘share capital” in the balance sheet.

The solution of Question 17 Chapter 8 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		90,000
	To equity share application A/c				90,000
	(Being the application money received )
	Equity Share application A/c	Dr.		90,000
	To Equity share capital A/c				60,000
	To Equity share allotment a/c				15,000
	To Cash A/c				15,000
	(Being application money transferred to equity share capital )
	Equity Share allotment A/c	Dr		1,00,000
	To Share capital A/c				1,00,000
	(Being the allotment money due )
	Cash A/c	Dr		85,000
	To Equity Share allotment A/c				85,000
	(Being the first call money due )

(NOTE: the company didn’t make the first and final call )

Dr.	Cash Book						Cr.
Date	Particulars	L.F.	Amount	Date	Particulars	L.F.	Amount
	To equity share application a/c		90,000		By application a/c		15,000
	To equity share allotment a/c		85,000
					By Balance C/d		1,60,000
			1,75,000				1,75,000

Dr.	Equity share application A/c						Cr.
Date	Particulars	L.F.	Amount	Date	Particulars	L.F.	Amount
	To Equity share application a/c		60,000		By cash a/c		90,000
	To equity share allotment a/c		15,000
	To cash a/c		15,000

			90,000				90,000

Dr.	Equity shares allotment A/c						Cr.
Date	Particulars	L.F.	Amount	Date	Particulars	L.F.	Amount
					By cash a/c		85,000
					By equity share application a/c		15,000

	To equity share capital a/c		1,00,000
			1,00,000				1,00,000