Question

Sunrise Ltd. was registered with a capital of Rs 4,00,000 in shares of Rs 100 each. It issued 2,000 of such shares payable Rs 25 per share on application; Rs 25 on allotment; Rs 20 on first call; and the balance as and when required.

All moneys payable on application and allotment were duly received, but when the first call of Rs 20 per share was made, one shareholder holding 100 shares failed to pay the amount due and another shareholder holding 200 shares paid them in full.

Record these transactions in the journal of the Company.

Answer 1

$\text{JOURNAL}$

$\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{L.F}& \text{Dr (Rs)}& \text{Cr. (Rs)}\\ & \text{Bank A/c}& \text{Dr.}& & 50,000& \\ & \text{To Share Application A/c}& & & & 50,000\\ & \text{(Application money received)}& & & & \\ & \text{Share Application A/c}& \text{Dr.}& & 50,000& \\ & \text{To Share Capital A/c}& & & & 50,000\\ & \text{(Application money transferred to Share Capital A/c)}& & & & \\ & \text{Bank A/c}& \text{Dr.}& & 50,000& \\ & \text{To Share Allotment A/c}& & & & 50,000\\ & \text{(Application money received)}& & & & \\ & \text{Share Allotment A/c}& \text{Dr.}& & 50,000& \\ & \text{To Share Capital A/c}& & & & 50,000\\ & \text{(Allotment money transferred to share capital account)}& & & & \\ & \text{Bank A/c}& \text{Dr.}& & 44,000& \\ & \text{To Share First Call A/c}& & & & 38,000\\ & \text{To Calls in Advance A/c}(200\times \text{Rs}30)& & & & 6,000\\ & \text{Alternatively*}& & & & \\ & \text{Bank A/c}& \text{Dr.}& & 44,000& \\ & \text{Calls in Arrears A/c}(100\times \text{Rs}20)& \text{Dr.}& & 2,000& \\ & \text{To Share First Call A/c}& & & & 40,000\\ & \text{To Calls in Advance A/c}(200\times \text{Rs}30)& & & & 6,000\\ & \text{(First Call received on 1,900 shares @ Rs 20 per share; plus}& & & & \\ & \text{second call received in advance on 200 shares @ Rs 30 per share)}& & & & \\ & \text{Share First Call A/c}& \text{Dr.}& & 40,000& \\ & \text{To Share Capital A/c}& & & & 40,000\\ & \text{( First call money transferred to share capital account)}& & & & \\ & & & & & \end{array}$

*Alternatively entry debiting Calls in Arrears A/c can be passed in all questions.