Question 38 Chapter 8 of +2-A
Table of Contents
38. Better prospect ltd. Acquired land costing Rs 1,00,000 and in the payment allotted 1000 equity shares of Rs 100 each as fully paid. Further , the company issued 4000 equity shares for subscription payable as follows : Rs 30 on application ; Rs 30 on allotment ; Rs 40 on first and final call .
Application were received for all shares which were allotted . All the money was received except the call on 200 shares.
Pass journal entries and prepare balance sheet in the company’s book.
The solution of Question 38 Chapter 8 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| Land A/c | Dr | 1,00,000 | |||
| To Share capital A/c | 1,00,000 | ||||
| (Being assets and liabilities purchased from the Better prospect. ) | |||||
| Bank A/c | 1,20,000 | ||||
| To Equity share application A/c | 1,20,000 | ||||
| (Being the application money received ) | 8,500 | ||||
| Equity Share application A/c | Dr | 1,20,000 | |||
| To Equity Share capital A/c | 1,20,000 | ||||
| (Being application money transferred to equity share capital ) | |||||
| Equity Share allotment A/c | Dr | 1,20,000 | |||
| To Share capital A/c | 1,20,000 | ||||
| (Being the allotment money due ) | |||||
| Bank A/c | Dr | 1,20,000 | |||
| To Equity Share allotment A/c | 1,20,000 | ||||
| (Being application money transferred to equity share capital ) | |||||
| Share first and 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 | 1,52,000 | |||
| Calls in arrear A/c | Dr | 8,000 | |||
| To Share first and final call A/c | 1,60,000 | ||||
| (Being first and final call money received with premium) | |||||
| Equity share capital A/c | Cr. | |
| Particulars |
Details |
Amount |
| Share capital | ||
| Authorized capital | ||
| 4000 Equity share of Rs 100 each | 4,00,000 | |
| Issued capital | ||
| 4000 equity shares of Rs 100 each | 4,00,000 | |
| Subscribed capital | ||
| Subscribed and fully paid-up | ||
| 1000 Equity shares of Rs 100 each | ||
| Allotted shares as payment of purchased land | 1,00,000 | |
| 4000 Equity shares of Rs 100 each | ||
| On application (4000 *Rs 30 each ) | 1,20,000 | |
| On allotment (8000*Rs 30 each ) | 1,20,000 | |
| On first and final call (8000 *Rs 40 each)- calls in arrear (200* Rs 40 each ) | 1,52,000 | 4,92,000 |
| share capital | 4,92,000 | |
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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
