Question

Rupak Ltd issued 10,000 shares of Rs. 100 each payable Rs.20 per share on application, Rs. 30 per share on allotment and balance in two calls of Rs. 25 per share. The application and allotment money were duly received. On first call all member paid their dues except one number holding 200 shares, while another member holding 500 shares paid for the balance due in full. Final call was not made. Give journal entries and prepare cash book.

Answer 1

$\text{Journal Entries}$
$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{LF}& \text{Amt. (Dr)}& \text{Amt.(Cr)}\\ \text{(i)}& \text{Share Application A/c}& \text{Dr}& & 2,00,000& \\ & \text{To Share Capital A/c}(10,000\times 20)& & & & 2,00,000\\ & \text{(Application money for 10,000 shares}& & & & \\ & \text{transferred to share capital account)}& & & & \\ & \underset{–}{}& & & & \\ \text{(ii)}& \text{Share Allotment A/c}& \text{Dr}& & 3,00,000& \\ & \text{To Share Capital A/c}(10,000\times 30)& & & & 3,00,000\\ & \text{(Allotment money due on 10,000 shares@}& & & & \\ & \text{Rs. 30 per share)}& & & & \\ & \underset{–}{}& & & & \\ \text{(iii)}& \text{Share First Call A/c}& \text{Dr}& & 2,50,000& \\ & \text{To Share Capital A/c}(10,000\times 25)& & & & 2,50,000\\ & \text{(Being share first call due on 10,000 shares@}& & & & \\ & \text{Rs. 25 per share)}& & & & \\ & \underset{–}{}& & & & \\ \text{(iv)}& \text{Call-in-Arrears A/c}(200\times 25)& \text{Dr}& & 5,000& \\ & \text{To Share First Call A/c}& & & & 5,000\\ & \text{(Call-in-arrears on 200 shares@}& & & & \\ & \text{Rs. 25 per share)}& & & & \end{array}$

$\text{Cash Book (Bank Column)}$
$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}\\ & \text{Share}& & 2,00,000& & & & \\ & \text{Application}& & & & & & \\ & \text{Share Allotment}& & 3,00,000& & & & \\ & \text{Share First Call}& & 2,45,000& & \text{Balance c/d}& & 7,57,500\\ & \text{Calls in Advance}& & 12,500& & & & \\ & & & \overline{\underset{–}{\underset{–}{7,57,500}}}& & & & \overline{\underset{–}{\underset{–}{7,57,500}}}\end{array}$

Working Note:
$\begin{array}{cc}& \\ \text{Money due on first call for 10,000 shares @ Rs. 25 each}& 2,50,000\\ \text{(-) Calls-in-arrears for 200 shares@ Rs. 25 per share}& (5,000)\\ \text{Money received on first call}& \overline{2,45,000}\\ \text{(+) Calls received in advance on 500 shares @ Rs. 25 per share}& 12,500\\ \text{Toal money received on first call}& \overline{\underset{–}{2,57,500}}\end{array}$

Note : It is not necessary to open calls-in-arrear account.