CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon


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.


Solution

                                                                            JOURNAL

Date                        ParticularsL.FDr (Rs)Cr. (Rs)Bank A/cDr.50,000   To Share Application A/c50,000(Application money received)Share Application A/cDr.50,000   To Share Capital A/c50,000(Application money transferred to Share Capital A/c)Bank A/cDr.50,000   To Share Allotment A/c50,000(Application money received) Share Allotment A/cDr.50,000   To Share Capital A/c50,000(Allotment money transferred to share capital account)Bank A/cDr.44,000   To Share First Call A/c38,000   To Calls in Advance A/c (200×Rs 30)   6,000Alternatively*Bank A/cDr.44,000Calls in Arrears A/c (100×Rs 20)Dr.   2,000   To Share First Call A/c40,000   To Calls in Advance A/c (200×Rs 30)   6,000(First Call received on 1,900 shares @ Rs 20 per share; plussecond call received in advance on 200 shares @ Rs 30 per share) Share First Call A/cDr.40,000   To Share Capital A/c40,000( First call money transferred to share capital account)

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

flag
 Suggest corrections
thumbs-up
 
0 Upvotes


Similar questions
QuestionImage
QuestionImage
View More...



footer-image