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Question 19 A Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 19 A Chapter 8 of +2- Part
Q-19A - CH-8 - Usha +2 Book 2018 - Solution

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Question 19 A Chapter 8 of +2-Part-1

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19A. (Calls in Arrear and Calls in Advance) A Ltd. issued 20,0000 equity shares of Rs. 10 each at a premium of 10% payable Rs. 2 on Application, Rs. 4 on Allotment (Including premium); Rs. 3 on first call and Rs. 2 on Final call . All the shares were duly subscribed, allotted and both the calls were made.
A holder of 400 shares did not pay final call while another holder of 500 shares paid the entire sum due on allotment.
Pass journal entries and prepare Balance Sheet.

The solution of Question 19 A Chapter 8 of +2 Part-1: –

Journal
Date  Particulars
L.F.DebitCredit
a)Bank A/cDr. 40,000 
 To Equity Share application A/c   40,000
 (Being application money received on 20,000 shares @ Rs. 2 per share)    
      
b)Equity Share Application A/cDr. 40,000 
 To Equity Share capital A/c   40,000
 (Being application money transferred to Share cap. A/c)    
      
c)Equity Share Allotment A/cDr. 80,000 
 To Equity Share capital A/c   60,000
 To Securities premium reserve A/c   20,000
 (Being allotment money due on 1,25,000 share @ Rs.7 as per shares)    
      
d)Bank A/cDr. 82,500 
 To Equity Share allotment A/c   80,000
 To Calls in advance A/c   2,500
 (Being allotment money received along with calls in advance on 500 share @ Rs.5 each )    
      
e)Equity Share first Call A/cDr. 60,000 
 To Equity Share capital A/c   60,000
 (Being first call money due on 20,000 shares @ 3 per share & call in advance on shares adjusted)    
      
f)Bank A/cDr. 58,500 
 Calls in advance A/cDr. 1,500 
 To Share First Call A/c   60,000
 (Being first call money received on 19,500 shares & call in advance on 500 shares adjusted )    
      
g)Equity Share final Call A/cDr. 40,000 
 To Equity Share capital A/c   40,000
 (Being final call money due)    
      
h)Bank A/cDr. 38,200 
 Calls in advance A/cDr. 1,000 
 Calls in Arrear A/cDr. 800 
 To Share Final Call A/c   40,000
 (Being final call money received 19,500 shares & call in advance on 500 shares adjusted)    
     
A Ltd. Balance Sheet
 ParticularsNote no/.
Current year
i)Equity & Liability  
 Shareholders fund  
 Share Capital11,99,200
 Reserve & Surplus220,000
 Total 2,19,200
ii)Assets  
 Current Assets  
 Cash & Cash equivalent32,19,200
 Total 2,19,200
Notes to Accounts:-
 ParticularsDetailsAmount
1)Shared capital  
 Authorized capital  
 Issued capital  
 20,000 Equity shares of Rs. 10 each 2,00,000
 Subscribed capital  
 (i) Subscribed & fully Paid up  
 19,600 shares of Rs. 10 each full called & paid 1,96,000
 (ii) Subscribed & not fully Paid up  
 400 shares of Rs. 10 each fully called4,000 
 Less : Calls in Arrears (400 X 2)8001,99,200
2)Reserve & Surplus  
 Securities Premium Reserve 20,000
    
3)Cash & Cash equivalent  
 Cash at Bank 2,19,200

Called up Capital : It has already been explained that it is not necessary that a company calls the entire amount of nominal (face) value of share by the close of accounting year . In such cases , called up portion of share capital is shown in the balance sheet as subscribed capital but fully 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

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