Question

Aman Ltd., issued 40,000 shares of ₹10 each to the public and received the amount as:
On 1.3.2023 with application ₹2.50; on allotment ₹2.50 on 1.7.2023; on first call ₹3 on 1.12.2023 and the balance amount on final call on 1.3.2024. Ramesh, who had 500 shares, paid the amount of first and final call with allotment and Mohan, who had 100 shares paid the amount of final call with first call. According to Articles of Association interest on call in advance is to be paid @12% p.a. The interest was paid on 1.3.2024. Give Journal entries in the books of the Company assuming that books are closed on 31st March every year.

Answer 1

Journal entries In the books of Aman Ltd.
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
2023
Mar-01	Bank A/c     ...Dr.		1,00,000
	To Share Application A/c			1,00,000
	(Application money received)
Jul-01	Share Application A/c     ...Dr.		1,00,000
	To Share Capital A/c			1,00,000
	(Application money transferred to share capital)
Jul-01	Share Allotment A/c     ...Dr.		1,00,000
	To Share Capital A/c			1,00,000
	(Allotment made due)
Jul-01	Bank A/c     ...Dr.		1,02,500
	To Share Allotment A/c			1,00,000
	To Calls in Advance A/c			2,500
	(Allotment money received)
Dec-01	Share First Call A/c     ...Dr.		1,20,000
	To Share Capital A/c			1,20,000
	(Share first Call made due)
Dec-01	Bank A/c     ...Dr.		1,18,700
	Calls in advance A/c     ...Dr.		1,500
	To Share First Call A/c			1,20,000
	To Calls in Advance A/c			200
	(First Call money received)
2024
Mar-01	Share Second and Final Call A/c     ...Dr.		80,000
	To Share Capital A/c			80,000
	(Share second call made due)
Mar-01	Bank A/c     ...Dr.		78,800
	Calls in advance A/c     ...Dr.		1,200
	To Share Second and Final Call A/c			80,000
	(Second call money received)
Mar-31	Interest on Calls in Advance A/c     ...Dr.		161
	To Sundry Members A/c			161
	(Interest on calls in advance)
Mar-31	Sundry Members A/c     ...Dr.		161
	To Bank A/c			161
	(Interest on call in advance paid)
Mar-31	Statement of Profit and Loss A/c     ...Dr.		161
	To Interest on Calls in Advance A/c			161
	(Interest on calls in adavcne transferred to Statement of Profit & Loss)