Question

XYZ Ltd.issued 8,000 Equity Shares of ₹ 10 each. ₹ 5 per share was called, payable ₹ 2 on application , ₹ 1 on allotment , ₹ 1 on first call and ₹ 1 on second call. All the money was duly received with the following exceptions:
A who holds 250 shares paid nothing after application.
B who holds 500 shares paid nothing after allotment.
C who holds 1,250 shares paid nothing after first call.
Prepare journal and the Balance Sheet .

Answer 1

Issued Capital 5,000 Shares of Rs 10 each Rs 5 called up

Books of XYZ Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		16,000
	To Share Application A/c				16,000
	(Share application money received for 8,000 shares at Rs2 each)
	Share Application A/c	Dr.		16,000
	To Share Capital A/c				16,000
	(Application money transferred to Share Capital)
	Share Allotment A/c	Dr.		8,000
	To Share Capital A/c				8,000
	(Allotment due on 8,000 shares at Re 1 each)
	Bank A/c	Dr.		7,750
	Call-in-Arrears A/c	Dr.		250
	To Share Allotment A/c				8,000
	(Allotment money received on 7,750 shares and 250 shares failed to pay it)
	Share First Call A/c	Dr.		8,000
	To Share Capital A/c				8,000
	(First call due on 8,000 shares at Re 1 each)
	Bank A/c	Dr.		7,250
	Calls in Arrears A/c	Dr.		750
	To Share First Call A/c				8,000
	(Share first call money received on 7,250 shares and 750 shares failed to pay it)
	Share Second Call A/c	Dr.		8,000
	To Share Capital A/c				8,000
	(Share second call due on 8,000 shares at Rs l each)
	Bank A/c	Dr.		6,000
	Call-in-Arrears A/c	Dr.		2,000
	To Share Second Call A/c				8,000
	(Share second call money received on 6,000 shares and 2000 shares failed to pay it)

As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.

XYZ Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	37,000
2. Non-Current Liabilities
3. Current Liabilities
Total		37,000
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	37,000
Total		37,000

NOTES TO ACCOUNTS

Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	……. shares of Rs 10 each		-
	Issued Share Capital
	8,000 shares of Rs 10 each		80,000
	Subscribed, Called-up and Paid-up Share Capital
	8,000 shares of Rs 10 each, Rs 5 Called-up and Paid-up	40,000
	Less: Calls-in-Arrears	(3,000)	37,000
2	Cash and Cash Equivalents
	Cash at Bank		37,000