Question

Khandelwal Co. Ltd. made an issue of 40,000 equity shares of Rs. 20 each, payable as follows:

Application: Rs. 5 per share
Allotment: Rs. 10 per share.

First Call: Rs. 3 per share.
Second and Final Call: Rs. 2 per share.

The company received applications for 45,000 shares of which applications for 5,000 shares were rejected and the money refunded. All the shareholders paid up to the second call except Sachin, the allottee of 2,000 shares, failed to pay the final call.
Pass Journal Entries for the above transactions in the books of Khandelwal Co. Ltd.

Answer 1

In the books of Khandelwal Co. Ltd Journal
Date	Particulars	L.F	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (45,000 × 5)                Dr.     To Equity Share Application A/c (Application money received)		225000	225000
	Equity Share Application A/c       Dr.     To Equity Share Capital A/c (40,000 × 5)     To Bank A/c (5,000 × 5) (Application money transferred to share capital)		2,25,000	2,00,000 25,000
	Equity Share Allotment A/c            Dr.      To Equity Share Capital A/c (40,000 × 10) (Allotment Money due)		4,00,000	4,00,000
	Bank A/c              Dr.    To Equity Share Allotment A/c (Allotment money received)		4,00,000	4,00,000
	Equity Share First Call A/c (40,000 × 3)      Dr.    To Equity Share Capital A/c (First, call money due)		1,20,000	1,20,000
	Bank A/c                 Dr.    To Equity Share First Call A/c (First call money received)		1,20,000	1,20,000
	Equity Share Second & Final Call A/c         Dr.     To Equity Share Capital A/c (40,000 × 2) (Second call money due)		80,000	80,000
	Bank A/c                        Dr. Calls-in-Arrears A/c (2,000 × 2)       Dr.    To Equity Share Second and Final Call A/c (Second call money received except from Sachin holding 2,000 shares)		76,000 4,000	80,000
	Total		16,50,000	16,50,000