Question 19 Chapter 8 of +2-Part-1
19. (Call in Arrears/Journal Entries/B/S) Bharat Industries Ltd. issued 1,50,000 equity shares of Rs. 15 each payable Rs. 3 on application, Rs. 7 on allotment and the balance on two calls, each of equal amount.
Applications were received for 1,25,000 shares which were duly allotted. A shareholder Holding 500 shares paid in full on allotment, while another shareholder holding 200 shares failed to pay call moneys.
Give journal entries to record the above transactions and show how they would appear in company’s balance sheet
The solution of Question 19 Chapter 8 of +2 Part-1: –
| Journal |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| a) | Bank A/c ( 1,25,000 X 3) | Dr. | 3,75,000 | ||
| To Share Application A/c | 3,75,000 | ||||
| (Being application money received on 1,25,00 shares @ Rs. 3 per share ) | |||||
| b) | Share Application A/c | Dr. | 3,75,000 | ||
| To Share capital A/c | 3,75,000 | ||||
| (Being application money transferred to Share cap. A/c) | |||||
| c) | Share Allotment A/c (1,25,000 X 7)) | Dr. | 8,75,000 | ||
| To Share capital A/c | 8,75,000 | ||||
| (Being allotment money due on 1,25,000 share @ Rs.7 as per shares) | |||||
| d) | Bank A/c | Dr. | 8,77,500 | ||
| To Share allotment A/c | 8,75,000 | ||||
| To Calls in advance A/c (500 x 5) | 2,500 | ||||
| (Being allotment money received along with calls in advance) | |||||
| e) | Share first Call A/c (1,25,000 X 2.50) | Dr. | 3,12,500 | ||
| To Share capital A/c | 3,12,500 | ||||
| (Being first call money due on 1,25,000 share @ Rs. 2.5 as per shares) | |||||
| f) | Bank A/c | Dr. | 3,10,750 | ||
| Calls in advance A/c | Dr. | 1,250 | |||
| Calls in arrears A/c | Dr. | 500 | |||
| To Share final Call A/c | 3,12,500 | ||||
| (Being first call money received with calls in advance and calls in arrear (200*2.5 = 500) adjusted ) | |||||
| g) | Share final Call A/c (1,25,000 X 2.50) | Dr. | 3,12,500 | ||
| To Share capital A/c | 3,12,500 | ||||
| (Being final call money due on 1,25,000 shares @ Rs. 2.5 as per share) | |||||
| h) | Bank A/c | Dr. | 3,10,750 | ||
| Calls in advance A/c | Dr. | 1,250 | |||
| Calls in arrears A/c | Dr. | 500 | |||
| To Share final Call A/c | 3,12,000 | ||||
| (Being final call money received with calls in advance and calls in arrear (200 x 2.5 = 500) adjusted ) | |||||
| Bharat Industries Ltd. Balance Sheet | ||
| Particulars | Note no. |
FIG. RELATING TO CURRENT REPORTNG PERIOD |
| I. Equity & Liability | ||
| Shareholders fund | ||
| Share Capital | 1 | 18,74,000 |
| Total | 18,74,000 | |
| II. Assets | ||
| Current Assets | ||
| Cash & Cash equivalent | 2 | 18,74,000 |
| Total | 18,74,000 | |
| Note No. 1 Share Capital |
||
| Particulars | Details | Amount |
| Authorized capital | ||
| Issued capital | ||
| 1,50,000 shares of Rs. 15 each | 22,50,000 | |
| Subscribed capital | ||
| Subscribed & fully Paid up | ||
| 1,24,800 shares of Rs. 10 each | 12,48,000 | |
| Subscribed & not fully Paid up | ||
| 200 shares of Rs. 15 each | 3,000 | |
| Less: Calls in Arrears | ||
| First Call | 500 | |
| Final Call | 500 | 2,000 |
| Total | 18,74,000 | |
| Note No. 2 :- Cash & Cash equivalent |
||
| Particulars | Details | Amount |
| Cash & Cash equivalent | ||
| Cash at Bank | 18,74,000 | |
End of Solution
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Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
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- Chapter No. 1 – Company Accounts (Share Capital)
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