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 pays their dues except one member 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

Books of Rupak Ltd. Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
	Share Application A/c		Dr.		2,00,000
		To Share Capital A/c				2,00,000
	(Application money for 10,000 shares transferred to Share Capital Account)
	Share Allotment A/c		Dr.		3,00,000
		To Share Capital A/c				3,00,000
	(Allotment money due on 10,000 shares @ Rs 30 per share)
	Share First Call A/c		Dr.		2,50,000
		To Share Capital A/c				2,50,000
	(Share First Call due on 10,000 shares @ Rs 25 per share)
	Calls in Arrears A/c		Dr.		5,000
		To Share First Call A/c				5,000
	(Call in arrears on 200 shares @ Rs 25 per share)

Cash Book (Bank Column)
Dr.					Cr.
Date	Particulars		J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
	Share Application			2,00,000
	Share Allotment			3,00,000
	Share first call			2,45,000		By Balance c/d		7,57,500
	Calls in Advance			12,500
				7,57,500				7,57,500

Working Note:

Money due on First Call for 10,000 shares @ 25 each			2,50,000
	Less: Calls in Arrear for 200 shares @ Rs 25 per Share		(5,000)
	Money Received on First Call		2,45,000
	Add: Calls received in advance on 500 shares @ Rs25 per share		12,500
			2,57,500