Question

A limited company offered for subscription 10,000 shares of ₹ 25 each, payable ₹ 5 per share on application, ₹ 10 per share on allotment (including ₹ 5 per share as premium), ₹ 5 per share as first call on the shares and the balance in two equal amounts at intervals of three months. All the shares were applied for and allotted. All the money was received except the second call and final call on 200 and 400 shares respectively.
You are asked to show the entries in the company’s Journal, Cash Book and the ledger. Also show the company’s Balance Sheet oncompletion of the above transaction.

Answer 1

Explanation:

Application       Rs 5

Allotment

(5+5 premium) Rs 10

First call             Rs 5

Second call       Rs 5

Final call            Rs 5

Total                 Rs 30