Question

Maconie Ltd. issued 50,000 Equity Shares of ₹ 10 each at ₹ 15, payable as follows:

1. On Application, ₹ 6 including premium of ₹ 2
2. On Allotment, ₹ 5 including balance of premium
3. Remaining amount on First and Final call after 3 months of shares being allotted applications were oversubscribed. Applications for 5,000 shares were rejected and money refunded immediately, and the remaining applications were allotted on pro rata basis in the ratio of 7:5.

Journal of Maconie Ltd.
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
	Bank A/c   ...Dr.		?
	To Share Application A/c			?
	(Being application money received)
	Share Application A/c   ...Dr.		?
	To Share Capital A/c			?
	To Securities Premium A/c			1,00,000
	To Bank A/c			30,000
	To Share Allotment A/c			?
	(Being application money transferred and adjusted)
	Share Allotment A/c   ...Dr.		2,50,000
	To Share Capital A/c			1,00,000
	To Securities Premium A/c			1,50,000
	(Being allotment money due)
	Bank A/c   ...Dr.		?
	To Share Allotment A/c			?
	To Calls in advance A/c			8,000
	(Being allotment money received including amount received for call)
	Share First & Final Call A/c   ...Dr.		2,00,000
	To Share Capital A/c			2,00,000
	(Being first call money due)
	Bank A/c   ...Dr.		1,92,000
	Calls in advance A/c   ...Dr.		8,000
	To Share First & Final Call A/c			2,00,000
	(Being share first & final call money received)
	Interest on calls in advance A/c   ...Dr.		?
	To Shareholders’ A/c			?
	(Being interest due on calls in advance as per provisions of Table F of Schedule I of the Company Act, 2013)

You are required to:

1. Complete the entries no. 1, 2, 4 and 7 along with the missing information represented by ‘?’.
2. Pass journal entries to pay and close Interest on Calls-in-Advance Account.

Answer 1

i.

Journal of Maconie Ltd.
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
	Bank A/c   ...Dr.		4,50,000	-
	To Share Application A/c		-	4,50,000
	(Being application money received)
	Share Application A/c   ...Dr.		4,50,000	-
	To Share Capital A/c		-	2,00,000
	To Securities Premium A/c		-	1,00,000
	To Bank A/c		-	30,000
	To Share Allotment A/c		-	1,20,000
	(Being application money transferred and adjusted)
	Share Allotment A/c   ...Dr.		2,50,000	-
	To Share Capital A/c		-	1,00,000
	To Securities Premium A/c		-	1,50,000
	(Being allotment money due)
	Bank A/c   ...Dr.		1,38,000	-
	To Share Allotment A/c		-	1,30,000
	To Calls in advance A/c		-	8,000
	(Being allotment money received including amount received for call)
	Share First & Final Call A/c   ...Dr.		2,00,000	-
	To Share Capital A/c		-	2,00,000
	(Being first call money due)
	Bank A/c   ...Dr.		1,92,000	-
	Calls in advance A/c   ...Dr.		8,000	-
	To Share First & Final Call A/c		-	2,00,000
	(Being share first & final call money received)
	Interest on calls in advance A/c   ...Dr.		240	-
	To Shareholders’ A/c		-	240
	(Being interest due on calls in advance as per provisions of Table F of Schedule I of the Company Act, 2013)

ii.

Journal of Maconie Ltd.
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
	Shareholders’ A/c   ...Dr.		240	-
	To Bank A/c		-	240
	(Interest on calls in advance paid to Shareholders)
	Statement of Profit and Loss   ...Dr.		240	-
	To Interest on calls in advance A/c		-	240
	(Being Interest on calls in advance A/c is closed)