Question

Rupak Ltd. issued 10,000 shares of Rs 100 each payable Rs 20 per share on application, Rs 30 per share on allotment and balance in two calls of Rs 25 per share. The application and allotment money were duly received. On first call all member pays their dues except one member holding 200 shares, while another member holding 500 shares paid for the balance due in full. Final call was not made. Give journal entries and prepare cash book.

Answer 1

Journal Entries in the Boooks of Rupak Ltd.
Date	Particulars	L.F	Debit Amount (₹)	Credit Amount (₹)
(i)	Share Application A/c   ...Dr.		2,00,000
	To Share Capital A/c			2,00,000
	(Being Application money for 10,000 shares transferred to Share Capital Account)
(ii)	Share Allotment A/c   ...Dr.		3,00,000
	To Share Capital A/c			3,00,000
	(Being Allotment money due on 10,000 shares @ Rs 30 per share)
(iii)	Share First Call A/c   ...Dr.		2,50,000
	To Share Capital A/c			2,50,000
	(Being Share First Call due on 10,000 shares @ Rs 25 per share)
(iv)	Bank A/c   ...Dr.		2,57,500
	Calls in Arrears A/c   ...Dr.		5,000
	To Share First Call A/c			2,50,000
	To Calls in Advance			12,500
	(Being Call in arrears on 200 shares @ Rs 25 per share)
			10,12,500	10,12,500

 

Dr.	Cash Book (Bank Column)						Cr.
Date	Particulars	J,F	Amount (₹)	Date	Particulars	J,F	Amount (₹)
	To Share Application		2,00,000		By Balance c/d		7,57,500
	To Share Allotment		3,00,000
	To Share first call		2,45,000
	To Calls in Advance		12,500
			7,57,500				7,57,500

Working Note:

Money due on First Call for 10,000 shares @ 25 each Less: Calls in Arrear for 200 shares @ Rs 25 per Share Money Received on First Call Add: Calls received in advance on 500 shares @ Rs25 per share	2,50,000
	(5,000)
	2,45,000
	12,500
	2,57,500