Question

Blue Chip Ltd. was registered on 1st January, 2025 with a capital of ₹ 10,00,000 divided into 1,00,000 shares of ₹ 10 each. The company issued 42,000 shares of which 40,000 shares were subscribed by public and ₹ 1 per share was received with application. On 1st February, 2025, these shares were allotted and ₹ 2 per share was duly received on 28th February, 2025 as allotment money. First call of ₹ 3 per share was made on 1st March, 2025 and the call money on all shares with the exception of 100 shares was received. The final call of ₹ 4 per share was made on 1st June, 2025 and the amount due, with the exception of 400 shares, was received by 30th June, 2025.

Pass necessary Journal and Cash Book entries and prepare the Balance Sheet as at 30th June, 2025.

Answer 1

Shares subscribed: 40,000 shares of ₹ 10 each

Application Money:

40,000 × ₹ 1 = ₹ 40,000

Allotment Money:

40,000 × ₹ 2 = ₹ 80,000

First Call Due:

40,000 × ₹ 3 = ₹ 1,20,000

First Call unpaid on 100 shares:

100 × ₹ 3 = ₹ 300

Amount received:

₹ 1,20,000 − ₹ 300 = ₹ 1,19,700

Final Call Due:

40,000 × ₹ 4 = ₹ 1,60,000

Final Call unpaid on 400 shares:

400 × ₹ 4 = ₹ 1,600

Amount received:

₹ 1,60,000 − ₹ 1,600 = ₹ 1,58,400

Total Calls-in-Arrears:

₹ 300 + ₹ 1,600 = ₹ 1,900

Journal Entries in the Books of Blue Chip Ltd.
Date	Particulars	Dr. (₹)	Cr. (₹)
1 Feb. 2025	Shares Application A/c   ...Dr.	40,000
	To Share Capital A/c		40,000
	(Application money transferred to Share Capital)
1 Feb. 2025	Shares Allotment A/c   ...Dr.	80,000
	To Share Capital A/c		80,000
	(Allotment money due @ ₹ 2 per share)
1 Mar. 2025	Shares First Call A/c   ...Dr.	1,20,000
	To Share Capital A/c		1,20,000
	(First Call money due @ ₹ 3 per share)
1 June 2025	Shares Final Call A/c   ...Dr.	1,60,000
	To Share Capital A/c		1,60,000
	(Final Call money due @ ₹ 4 per share)

 

Cash Book
Date	Particulars	₹
Jan. 2025	To Shares Application A/c	40,000
28 Feb. 2025	To Shares Allotment A/c	80,000
Mar. 2025	To Shares First Call A/c	1,19,700
30 June 2025	To Shares Final Call A/c	1,58,400
	Balance	3,98,100

 

Calls-in-Arrears
Particulars	₹
First Call on 100 shares @ ₹ 3	300
Final Call on 400 shares @ ₹ 4	1,600
Total Calls-in-Arrears	1,900

 

Balance Sheet of Blue Chip Ltd. as at 30th June, 2025
Particulars	Note No.	₹
EQUITY AND LIABILITIES
Shareholders' Funds
Share Capital	1	3,98,100
ASSETS
Cash and Cash Equivalents		3,98,100
Total		3,98,100

 

Notes to Accounts
Particulars	₹
Note 1: Share Capital
Authorised Capital:
1,00,000 Equity Shares of ₹ 10 each	10,00,000
Issued Capital:
42,000 Equity Shares of ₹ 10 each	4,20,000
Subscribed and Fully Called-up Capital:
40,000 Equity Shares of ₹ 10 each	4,00,000
Less: Calls-in-Arrears	(1,900)
Total Share Capital	3,98,100