Question

Kisan Co. Ltd. Miraj, issued Rs. 50,000 shares at par Rs. 10 each, payable Rs. 3 on application, Rs. 4 on allotment and the balance on the final call. All the shares were fully subscribed and paid except a shareholder Mr. D. Kapse having Rs. 1,000 shares could not pay the final call. Mr. D. K. Kapse paid the call - in - arrears amount together with interest after four months of due date of final call. Company charged interest on the arrears received as per table ‘A’.

Pass journal entries to record these transactions assuming that call - in - arrears and interest money received from Mr. D. Kapse in the books of Kisan Co Ltd. Miraj.

Answer 1

Journal Entries in the Books of Kisan Co. Ltd, Miraj.

Date	Particulars	L.F.	Debit Rs.	Credit Rs.
(1)	Bank A/c ..... Dr.		150000
	To Equity Share Application A/c			150000
	(Being shares application money @ Rs. 3 per share received for 50000 shares)
(2)	Equity Share Application A/c .... Dr.		150000
	To Equity Share Capital A/c			150000
	(Being application money on 50000 shares transferred to share capital A/c)
(3)	Equity Share Allotment A/c .... Dr.		200000
	To Equity Share Capital A/c			200000
	(Being share allotment due)
(4)	Bank A/c .... Dr.		200000
	To Equity Share Allotment A/c			200000
	[Being share allotment money received]
(5)	Equity Share Final Call A/c ... Dr.		150000
	To Equity Share Capital A/c			150000
	(Being share first call due)
(6)	Bank A/c .... Dr.		147000
	To Equity Share Final Call A/c			147000
	(Being first call money received except for 100 shares)
(7)	Equity Share Call - in - Arrears A/c .... Dr.		3000
	To Equity Share Final Call A/c			3000
	[Being calls - in - arrears on 1000 shares recorded]
(8)	Mr. D. K. Kapse A/c   ...Dr		50
	To Interest on call-in-Arrears A/c			50
	[Being interest charged on calls - in - arrears @ 5% p.a.]
(9)	Bank A/c .... Dr.		3050
	To Mr. D. Kapse A/c			50
	To Equity Share Calls - in - Arrears A/c			3000
	[Being amount due on calls- in - arrears received with interest]