Question 24 Chapter 8 of +2-A
24. star ltd. Was registered with a capital of Rs 5,00,000 in shares of RS 10 each and issued 20,000 such shares at a premium of Rs 2 per share on the application , Rs 5 per share on the application, Rs 5 per share on the allotment ( including premium ) and Rs 2 per share on the first call made three months later. All the money payable on application and allotment was dully received but when the first call was made, one shareholder paid the entire balance on his holding of 300 shares and another shareholder holding 1000 shares failed to pay the first call money.
Pass journal entries to record the above transactions and show how they will appear in the company’s Balance sheet.
The solution of Question 24 Chapter 8 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| Bank A/c | Dr. | 43,000 | |||
| To equity share application A/c | 43,000 | ||||
| (Being the application money received ) | |||||
| Equity Share application A/c | Dr. | 43,000 | |||
| To Equity share capital A/c | 40,000 | ||||
| To calls in advance A/c | 3,000 | ||||
| (Being application money transferred to equity share capital ) | |||||
| Equity Share allotment A/c | Dr | 1,00,000 | |||
| To Share capital A/c | 60,000 | ||||
| To Equity share premium A/c | 40,000 | ||||
| (Being the allotment money due ) | |||||
| Cash A/c | Dr | 98,500 | |||
| Calls in Advance A/c | 1500 | ||||
| To Equity Share allotment A/c | 1,00,000 | ||||
| (Being application money transferred to equity share capital ) | |||||
| Share first call A/c | Dr. | 40,000 | |||
| To Share capital A/c | 40,000 | ||||
| (Being the first call money due ) | |||||
| Cash A/c | Dr. | 37,400 | |||
| calls in arrear A/c | Dr. | 2,000 | |||
| Calls in Advance A/c | 600 | ||||
| To Share first and final call A/c | 40,000 | ||||
| (Being first and final call money received ) | |||||
| 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) | 1,78,900 |
| 1,78,900 | ||
| Equity share capital A/c | Cr. | |
| Particulars |
Particulars |
Amount |
| Share capital | ||
| Authorized capital | ||
| 50,000 Equity share of Rs 10each | 5,00,000 | |
| Issued capital | ||
| 20,000 equity shares of Rs 10 each | 2,00,000 | |
| Subscribed capital | ||
| Subscribed and fully paid-up | ||
| 20,000 Equity shares of Rs 10 each | ||
| On application (20,000 *Rs 2 each+ advance received @300 *12 shares ) | 43,000 | |
| On allotment (20,000 *Rs 5 each /including premium RS 3 ) | 1,00,000 | |
| On first call {(20,000 *Rs 2 each ) – calls in arrear (2000)} | 38,500 | |
| 1,78,900 | ||
| share capital (subscribed) | 1,78,900 | |
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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