X Ltd issued 10000 equity shares of Rs.10 each. The amounts on there shares were payable as Rs 2 on application,Rs 3 on allotment and Rs 5 on first and final call amounts were duly received. A who holds 500 equity shares did not pay allotment and first call amounts on these shares and B who holds 300 shares did not pay the first call Money. Prepare Bank account in the Books of X Ltd.
Answers
Bank Account in the books of X Ltd.
Particulars Amount Particulars Amount
To Share Application A/c 20,000 By Balance c/d 94,500
To Share Allotment A/c 28,500
To Share First & Final call A/c 46,000
Total 94,500 94,500
Share Application Entries
Bank A/c Dr. (10,000 x 2) 20,000
To Share Application A/c (10,000 x 2) 20,000
(Being application money on 10,000 shares @ 2 per share received)
Share Application A/c Dr. (10,000 x 2) 20,000
To Share Capital A/c (10,000 x 2) 20,000
(Being the transfer of application money, to share capital account on 10,000 shares)
Share Allotment Entries
Share Allotment A/c Dr. (10,000 x 3) 30,000
To Share Capital A/c (10,000 x 3) 30,000
(Being allotment money due on 10,000 shares @ 3 per share)
Bank A/c Dr. (10,000 x 3) 28,500
Calls in Arrears A/c Dr. (500 x 3) 1,500
To Share Allotment A/c (10,000 x 3) 30,000
(Being allotment money on 10,000 shares received @ 3 per share excluding 500 shares of A)
Share First & Final Call Entries
Share First & Final call A/c Dr. (10,000 x 5) 50,000
To Share Capital A/c (10,000 x 5) 50,000
(Being first call money on 10,000 shares @ 5 per share due)
Bank A/c Dr. (9,200 x 5) 46,000
Calls in Arrears A/c Dr. (800 x 5) 4,000
To Share First & Final call A/c (10,000 x 5) 50,000
(Being first call money on 10,000 shares @ 5 per share received excluding 800 unpaid shares)