Question 22 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 22 Chapter 8 of +2-A – T.S. Grewal 12 Class

By Shubham Sharma 9 Min Read December 20, 2020

Question No.22 - Chapter No.8 - T.S. Grewal +2 Book 2019-Solution-min-min

Question 22 Chapter 8 of +2-A

Table of Contents

The solution of Question 22 Chapter 8 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

22. The Kalyan cotton mills ltd. Was registered on 1st January 2011 with a capital of Rs 1,00,000 divided into 1,00,000 shares of Rs 10 each. The company issued 42,000 shares were taken up by the public and Rs 10 each. The company issued 42,000 shares of which 4000 shares of which 40,000 shares were taken up by the public and Rs 1 per share was received with the application. On 1st February, these shares were allotted and Rs 2 per was duly received on 28th February as allurement money. The first call of Rs 3 per share was made on 1st March and the call money on all shares with the exception of 100 shares was received. The final call of Rs 4 per share was made on 1st June and the amount due, with the exception of 400 shares, was received by 30th June. Pass necessary journal and cash book entries and prepare the balance sheet as of 30th June 2011.

The solution of Question 22 Chapter 8 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
1st Jan/11	Bank A/c	Dr.		40,000
	To equity share application A/c				40,000
	(Being the application money received )
1st Jan/11	Equity Share application A/c	Dr.		40,000
	To Equity share capital A/c				40,000
	(Being application money transferred to equity share capital )
1st Feb/11	Equity Share allotment A/c	Dr		80,000
	To Share capital A/c				80,000
	(Being the allotment money due )
28th Feb/11	Cash A/c	Dr		80,000
	To Equity Share allotment A/c				80,000
	(Being application money transferred to equity share capital )
	Share first call A/c	Dr.		1,20,000
	To Share capital A/c				1,20,000
	(Being the first call money due )
	Cash A/c	Dr.		1,19,700
	calls in arrear A/c	Dr.		300
	To Share first and final call A/c				1,20,000
	(Being first and final call money received )
	Share final call A/c	Dr.		1,60,000
	To Share capital A/c				1,60,000
	(Being the first call money due )
	Bank A/c	Dr.		1,58,400
	Calls in arrear A/c	Dr.		1600
	To Share final all A/c				1,60,000
	(Being first and final call money received )

Dr.	Cash Book						Cr.
Date	Particulars	L.F.	Amount	Date	Particulars	L.F.	Amount
1st Jan/11	To equity share application a/c		40,000
28thFeb/11	To equity share allotment a/c		80,000
31stMar/11	To equity first, call a/c		1,19,700
30thJun/11	To equity share second and final call a/c		1,58,400
					By Balance C/d		3,98,100
			3,98,100				3,98,100

Cash Book		Cr.
Particulars (1)	Note no. (2)	Figures as at the end of the Previous Reporting Period (3)
I. Equity and Liabilities
1. Shareholders’ Funds
(a) Share Capital	(1)	3,98,100
		3,98,100

Equity share capital A/c		Cr.
Particulars	Particulars	Amount
Share capital
Authorized capital
1,00,000 Equity share of Rs 10each		10,00,000
Issued capital
40,000 equity shares of Rs 10 each		4,00,000
Subscribed capital
Subscribed and fully paid-up
40,000 Equity shares of Rs 10 each
On application (40,000 *Rs 1 each )	40,000
On allotment (40,000 *Rs 2 each )	80,000
On first call (40,000 Rs 3 each ) – calls in arrear (100Rs 3 each)	1,19,700
On first call (40,000 Rs 4 each )- calls in arrear (400Rs 4 each 0	1,58,400	3,98,100
share capital (subscribed)		3,98,100