Question

Q. 13. Aman Ltd., issued 40,000 shares of 310 each to the public and received the
amount as :
On 1.3.2017 with application 2.50; on allotment 32.50 on 1.7.2017, on first call
*3 on 1.12.2017 and the balance amount on final call on 1.3.2018 Ramesh, who had
500 shares, paid the amount of first and final call with allotment and Mohan, who had
100 shares paid the amount of final call with first call. According to Articles of
Association interest on call in advance is to be paid @ 12% p.a. The interest was paid
on 1.3.2018. Give Journal entries in the books of the Company assuming that books are
closed on 31st March every year.

Answer 1

Answer:

The interest was paid

on 1.3.2018. Give Journal entries in the books of the Company assuming that books are

closed on 31st March every year.