Question

Gama Ltd. issued 2,00,000 Equity shares of ₹10 each to the public, payable as follows:

₹2 on Application
₹3 on Allotment (on 1st November, 2022)
₹5 on First & Final Call (on 1st March, 2023)

Applications were received for 2,50,000 shares. The directors of the company accepted applications for 2,00,000 shares and refunded the application money on the remaining shares.
One shareholder who was allotted 3,000 shares paid the first and final call with allotment.
Another shareholder did not pay his allotment on 2,000 shares when due but paid it with the first and final call along with interest on calls-in-arrears.
The directors of the company charged interest on calls-in-arrears at the rate provided in Table F of the Companies Act. 2013. No interest was allowed on calls-in-advance.
You are required to pass journal entries to record the above transactions in the books of Gama Ltd.

Answer 1

Journal entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Bank A/c     ...Dr.		5,00,000
	To Share Application A/c			5,00,000
	(Application on 2,50,000 shares @ ₹2 each)
2.	Share Application A/c     ...Dr.		5,00,000
	To Share Capital A/c (2,00,000 × ₹2)			4,00,000
	To Bank A/c (refund 50,000 × ₹2)			1,00,000
	(Application on 2,00,000 shares transferred; balance refunded)
3.	Share Allotment A/c     ...Dr.		6,00,000
	To Share Capital A/c			6,00,000
	(Allotment @ ₹3 per share on 2,00,000 shares)
4.	Bank A/c     ...Dr.		6,09,000
	To Share Allotment A/c			5,94,000
	To Calls in Advance A/c			15,000
	(Allotment cash from all except arrears holder + call in advance on 3,000 shares)
5.	Calls in Arrears A/c     ...Dr.		6,000
	To Share Allotment A/c			6,000
	(Allotment remaining unpaid)
6.	Share First & Final Call A/c     ...Dr.		10,00,000
	To Share Capital A/c			10,00,000
	(First & Final Call due)
7.	Bank A/c     ...Dr.		9,85,000
	Calls in Advance A/c     ...Dr.		15,000
	To Share First & Final Call A/c			10,00,000
	(Call money received from all shareholders except amount earlier received as calls‑in‑advance)
8.	Bank A/c     ...Dr.		6,000
	To Calls in Arrears A/c			6,000
	(Receipt of overdue allotment)
9.	Bank A/c     ...Dr.		200
	To Interest on Calls‑in‑Arrears A/c			200
	(Interest on calls‑in‑arrears received)
10.	Interest on Calls‑in‑Arrears A/c     ...Dr.		200
	To Statement of Profit & Loss			200
	(Transfer interest income to P&L)

Working note:

Shares issued = 2,00,000 @ ₹10.
Payable: ₹2 Appn; ₹3 Allot (1 Nov 2022); ₹5 Call (1 Mar 2023).
Applications received = 2,50,000 → accept 2,00,000, refund 50,000.
One holder (3,000 shares) paid call with allotment → Calls‑in‑Advance ₹15,000 (no interest allowed).
Another holder (2,000 shares) did not pay allotment (₹6,000) and paid it at call with interest on calls‑in‑arrears.
Interest on calls‑in‑arrears: `₹6000 xx 10% xx 4/12 = ₹200`