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

Question 19 A Chapter 8 of +2- Part

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

Free Accounting book Solution - Class 11 and Class 12

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. Debit Credit
a) Bank A/c Dr.   40,000  
  To Equity Share application A/c       40,000
  (Being application money received on 20,000 shares @ Rs. Each )        
           
b) Equity Share Application A/c Dr.   40,000  
  To Equity Share capital A/c       40,000
  (Being application money transferred to Share cap. A/c)        
           
c) Equity Share Allotment A/c Dr.   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/c Dr.   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/c Dr.   60,000  
  To Equity Share capital A/c       60,000
  (Being first call money due on 19,500 share & call in advance on shares adjusted)        
           
f) Bank A/c Dr.   58,500  
  Calls in advance A/c Dr.   1,500  
  To Share final 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/c Dr.   40,000  
  To Equity Share capital A/c       40,000
  (Being final call money due)        
    Dr.   38,200  
h) Bank A/c Dr.   1,000  
  Calls in advance A/c       39,200
  To Share final Call A/c        
  (Being final call money received 19,500 shares & call in advance on 500 shares adjusted)        
         
Delhi Milk Supply Co. Ltd. Balance Sheet
  Particulars Note no/.
Current year
i) Equity & Liability    
  Shareholders fund    
  Share Capital 1 1,99,200
  Reserve & Surplus 2 20,000
  Total   2,19,200
ii) Assets    
  Current Assets    
  Cash & Cash equivalent 2 2,19,200
  Total   2,19,200
Note
  Particulars   FIG. RELATING TO PREVIOUS REPORTNG PERIOD
i) Shared capital    
  Authorized capital    
  Issued capital    
  20,000 Equity shares of Rs. 10 each    
  Subscribed capital    
  (i) Subscribed & fully Paid up    
  19,600 shares of Rs. 10 each full called & paid    
  (ii) Subscribed & not fully Paid up    
  400 shares of Rs. 10 each fully called    
  Less : Calls in Arrears (400 X 2)   1,99,200
2) Reserve & Surplus    
  Securities Premium Reserve   20,000
       
3) Cash & Cash equivalent   2,19,200
  Cash at Bank    

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

2 Book 1 min - Question 19 A 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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