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

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

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Question 19 Chapter 8 of +2-Part-1

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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.DebitCredit
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/cDr. 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/cDr. 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/cDr. 3,10,750 
 Calls in advance A/cDr. 1,250 
 Calls in arrears A/cDr. 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/cDr. 3,10,750 
 Calls in advance A/cDr. 1,250 
 Calls in arrears A/cDr. 500 
 To Share final Call A/c   3,12,000
 (Being final call money received with calls in advance and calls in arrear (200*2.5 = 500) adjusted )    
     
Bharat Industries Ltd. Balance Sheet
ParticularsNote no.
FIG. RELATING TO CURRENT REPORTNG PERIOD
I. Equity & Liability  
Shareholders fund  
Share Capital118,74,000
Total 18,74,000
II. Assets  
Current Assets  
Cash & Cash equivalent218,74,000
Total 18,74,000
Note No. 1 Share Capital
ParticularsDetailsAmount
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 18,75,000
Subscribed & not fully Paid up  
200 shares of Rs. 15 each3,000 
Less : Calls in Arrears  
First Call500 
Final Call5002,000
   
Total 18,74,000
Note No. 2 :- Cash & Cash equivalent
ParticularsDetailsAmount
Cash & Cash equivalent  
Cash at Bank 18,74,000

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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