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

Question 19 Chapter 8 of +2- Part

Question 19 Chapter 8 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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 capital 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       2,500
  (Being allotment money received along wild 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  
  To Share final Call A/c       3,12,000
  (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 shares)        
           
h) Bank A/c Dr.   3,10,750  
  Calls in advance A/c Dr.   1,250  
  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 )        
         
Delhi Milk Supply Co. Ltd. Balance Sheet
 
  Particulars Note no/.
FIG. RELATING TO CURRENT REPORTNG PERIOD
FIG. RELATING TO PREVIOUS 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
  Particulars FIG. RELATING TO CURRENT REPORTNG PERIOD FIG. RELATING TO PREVIOUS REPORTNG PERIOD
i) Shared capital    
  Authorized capital    
  Issued capital    
  1,50,000 shares of Rs. 15 each    
       
    22,50,000 22,50,000
ii) Subscribed & called capital    
  1,25,000 shares of Rs. 15 each fully called up 18,75,000  
  Less : Calls in Arrears 1,000  
  Total 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 - Question 19 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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