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 the balance in two calls of Rs 25 per share. The application and allotment money were duly received. On the first call, all members pay 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 the cash book.

Answer 1

Journal Entries in the Books of Rupak Ltd.
Date	Particulars	L.F	Debit Amount (₹)	Credit Amount (₹)
(i)	Share Application A/c   ...Dr.		2,00,000	-
	To Share Capital A/c		-	2,00,000
	(Being Application money for 10,000 shares transferred to Share Capital Account)
(ii)	Share Allotment A/c   ...Dr.		3,00,000	-
	To Share Capital A/c		-	3,00,000
	(Being Allotment money due on 10,000 shares @ Rs 30 per share)
(iii)	Share First Call A/c   ...Dr.		2,50,000	-
	To Share Capital A/c		-	2,50,000
	(Being Share First Call due on 10,000 shares @ Rs 25 per share)
(iv)	Bank A/c   ...Dr.		2,57,500	-
	Calls in Arrears A/c   ...Dr.		5,000	-
	To Share First Call A/c		-	2,50,000
	To Calls in Advance		-	12,500
	(Being called in arrears on 200 shares @ Rs 25 per share)

 

Dr.	Cash Book (Bank Column)						Cr.
Date	Particulars	JF	Amount (₹)	Date	Particulars	JF	Amount (₹)
	To Share Application		2,00,000		By Balance c/d		7,57,500
	To Share Allotment		3,00,000
	To share first call		2,45,000
	To 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 Arrears 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 @ Rs 25 per share	12,500
	2,57,500