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

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 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

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I (Introduction)
• Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
• Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
• Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
• Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size
• Chapter No. 4 – Ratio Analysis
• Chapter No. 5 – Cash Flow Statement

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