Question 38 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 38 Chapter 8 of +2-A – T.S. Grewal 12 Class

By Shubham Sharma 7 Min Read December 20, 2020

Question No.38. - Chapter No.8 - T.S. Grewal +2 Book 2019-Solution-min-min

Question 38 Chapter 8 of +2-A

Table of Contents

The solution of Question 38 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)

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