Question

Modern Chemicals Co. Ltd. made an issue of 60,000 shares of Rs. 20 each payable as follows :
On application Rs. 5 per share
On allotment  Rs. 5 per share
On first call  Rs. 4 per share
On second call  Rs. 3 per share
The company received applications for 65,000 shares of which applications for 5,000 shares were
rejected and money refunded.
All the shareholders paid up to second call except one shareholder, Mr. Bhupendra, the allotee of
100 shares, who did not pay the amount of the second call.
Give Journal Entries in the books of Modern Chemicals Co., Ltd.

Answer 1

Journal of Modern Chemicals Co. Ltd.

Date	Particulars	L.F.	Debit (Rs.)	Credit (Rs. )
1	Bank A/c ... Dr.		325000
	To Equity Share Application A/c			325000
	[Being share application money Rs. 5 per share received on 65000 shares]
2	Equity Share Application A/c .... Dr		325000
	To Equity Share Capital A/c			300000
	To Bank A/c			25000
	[Being application money transferred to share capital and excess appliation monery refunded. ]
3	Equity Share Allotment A/c ....Dr		300000
	To Equity Share Capital A/c			300000
	[Being allotment money of Rs. 5 per share due on 60000 shares)
4	Bank A/c ... Dr.		300000
	To Equity Share Allotment A/c			300000
	[Being allotment monery received]
5	Equity Share First Call A/c .... Dr.		240000
	To Equity Share Capital A/c			240000
	[Being first call monery Rs. 4 per share due on 60000 shares)
6.	Bank A/c .... Dr.		240000
	To Equity Share First Call A/c			240000
	[Being first call monery received]
7	Equity Share second call A/c ... Dr.		180000
	To Equity Share Capital A/c			180000
	[Being second call money Rs. 3 per share due on 60000 shares]
8	Bank A/c .... Dr.		179700
	Equity Share Second call in Arrears A/c ... Dr.		300
	To Equityu share Second call A/c			180000
	[Being second call money received on all shares except 100 shares]