Question

Better Prospect Ltd. acquired land costing  ₹ 1,00,000 and in payment allotted 1,000 Equity Shares of  ₹ 100 each as fully paid. Further, the company issued 4,000 Equity Shares to public . The shares were payable as:  ₹ 30 on application ;  ₹ 30 on allotment;  ₹ 40 on first and final call.
Applications were received for all shares which were allotted . All the money was received except the call on 200 shares.
Pass journal entries and prepare Balance Sheet of the company. 

Answer 1

Issued to public payable as:

Rs	30	on application
Rs	30	on allotment
Rs	40	first and final call
Rs	100	Called-up

Books of Better Prospect Ltd.
Journal

Date	Particulars		L.F.	Debit Amount  Rs	Credit Amount  Rs
	Land A/c	Dr.		1,00,000
	To Vendor				1,00,000
	(Land purchased from the vendor)
	Vendor	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(1,000 equity of Rs 100 each issued to Vendor)
	Bank A/c	Dr.		1,20,000
	To Equity Share Application A/c				1,20,000
	(Share Application money received for 4,000 equity shares at Rs 30 per share)
	Equity Share Application A/c			1,20,000
	To Equity Share Capital	Dr.			1,20,000
	(Share Application money of 4,000 shares transferred to Equity Share Capital Account)
	Equity Share Allotment A/c	Dr.		1,20,000
	To Equity Share Capital A/c				1,20,000
	(Share allotment due on 4,000 equity shares of Rs 30 each)
	Bank A/c	Dr.		1,20,000
	To Share Allotment A/c				1,20,000
	(Share allotment received for 4,000 shares at Rs 30 per share)
	Share First and Final Call A/c	Dr.		1,60,000
	To Equity Share Capital A/c				1,60,000
	(First and final call due on 4,000 equity shares at 40 per share)
	Bank A/c	Dr.		1,52,000
	Calls-in-Arrears A/c	Dr.		8,000
	To Share First and Final Call A/c				1,60,000
	(First and final call received from 3,800 shares and 200 share failed to pay it)

As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows. 

Better Prospect Ltd.
Balance Sheet

Particulars	Note No.	Amount  (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	4,92,000
2. Non-Current Liabilities
3. Current Liabilities
Total		4,92,000
II. Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets	2	1,00,000
2. Current Assets
a. Cash and Cash Equivalents	3	3,92,000
Total		4,92,000

NOTES TO ACCOUNTS 

Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	…… shares of Rs 100 each		--
	Issued Share Capital
	5,000 shares of Rs 100 each		5,00,000
	Subscribed, Called-up and Paid-up Share Capital
	1,000 shares of Rs 100 each (for consideration other than cash)	1,00,000
	4,000 shares of Rs 100 each	4,00,000
	Less: Calls-in-Arrears	(8,000)	4,92,000
2	Tangible Assets
	Land		1,00,000
3	Cash and Cash Equivalents
	Cash at Bank		3,92,000