Question

X ltd issued 20000 shares of rs. 100 each at a premium of 6%. payments were made as rs. 25 on application 46 on allotment 10 on first call and 25 on second final call. The apps were received for 18000 shares and all accepted. All the money duly received except the first and final call on 100 shares . pass journal entries without opening calls in arrear account.

Answer 1

Dear Student,

Journal entries are as follows:

Date	Particulars	LF	Amount (in Rs)	Amount (in Rs)
	Bank A/c (18,000*25)	Dr	450,000
	To Share Application A/c			450,000
	(Application money received on 18,000 shares)
	Share Application A/c	Dr	450,000
	To Share Capital A/c			450,000
	(Share Application money transferred to Share Capital A/c)
	Share Allotment A/c (18,000*46)	Dr	828,000
	To Share Capital A/c (18,000*40)			720,000
	To Securities premium A/c (18,000*6)			108,000
	(Share Allotment money due)
	Bank A/c	Dr	828,000
	To Share Allotment A/c			828,000
	(Share Allotment money received)
	Share First Call A/c (18,000*10)	Dr	180,000
	To Share Capital A/c			180,000
	(Share First call money due)
	Bank A/c (17,900*10)	Dr	179,000
	TO Share First Call A/c			179,000
	(First Call money received except on 100 shares)
	Share Final Call A/c (18,000*25)	Dr	450,000
	To Share Capital A/c			450,000
	(Share Final call money due)
	Bank A/c (17,900*25)	Dr	447,500
	To Share Final Call A/c			447,500
	(Final Call money received except on 100 shares)

Regards,