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A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company?
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A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on ...
Journal Entries for Issuance of Equity Shares and Non-Payment of Calls
The issuance of equity shares is a common way for companies to raise capital. In this scenario, A Ltd. issued 10,000 equity shares of Rs 10 each, payable as Rs 1 on application, Rs 2 on allotment, and Rs 7 on call. However, two shareholders, X and Y, failed to pay the money on allotment and calls. The following journal entries need to be made in the books of the company:
1. Journal entry for receipt of application money:
Bank Account Dr. 10,000
To Equity Share Application Account 10,000
2. Journal entry for allotment of shares:
Equity Share Application Account Dr. 10,000
To Equity Share Allotment Account 2,000
To Equity Share Capital Account 8,000
3. Journal entry for non-payment of allotment money by X:
Equity Share Allotment Account Dr. 200
To X’s Account 200
4. Journal entry for non-payment of call money by X:
Calls in Arrears Account Dr. 700
To X’s Account 700
5. Journal entry for non-payment of call money by Y:
Calls in Arrears Account Dr. 350
To Y’s Account 350
Explanation:
- The first entry records the receipt of application money from shareholders.
- The second entry records the allotment of shares to shareholders and the transfer of funds from the Equity Share Application Account to the Equity Share Capital Account.
- The third entry records the non-payment of allotment money by X, resulting in a transfer of funds from the Equity Share Allotment Account to X’s Account.
- The fourth entry records the non-payment of call money by X, resulting in a transfer of funds from the Calls in Arrears Account to X’s Account.
- The fifth entry records the non-payment of call money by Y, resulting in a transfer of funds from the Calls in Arrears Account to Y’s Account.
Conclusion:
In conclusion, the journal entries for the issuance of equity shares and non-payment of calls help to keep track of the financial transactions of the company. It is important for companies to ensure that shareholders pay their dues on time to avoid any discrepancies in their books.
The issuance of equity shares is a common way for companies to raise capital. In this scenario, A Ltd. issued 10,000 equity shares of Rs 10 each, payable as Rs 1 on application, Rs 2 on allotment, and Rs 7 on call. However, two shareholders, X and Y, failed to pay the money on allotment and calls. The following journal entries need to be made in the books of the company:
1. Journal entry for receipt of application money:
Bank Account Dr. 10,000
To Equity Share Application Account 10,000
2. Journal entry for allotment of shares:
Equity Share Application Account Dr. 10,000
To Equity Share Allotment Account 2,000
To Equity Share Capital Account 8,000
3. Journal entry for non-payment of allotment money by X:
Equity Share Allotment Account Dr. 200
To X’s Account 200
4. Journal entry for non-payment of call money by X:
Calls in Arrears Account Dr. 700
To X’s Account 700
5. Journal entry for non-payment of call money by Y:
Calls in Arrears Account Dr. 350
To Y’s Account 350
Explanation:
- The first entry records the receipt of application money from shareholders.
- The second entry records the allotment of shares to shareholders and the transfer of funds from the Equity Share Application Account to the Equity Share Capital Account.
- The third entry records the non-payment of allotment money by X, resulting in a transfer of funds from the Equity Share Allotment Account to X’s Account.
- The fourth entry records the non-payment of call money by X, resulting in a transfer of funds from the Calls in Arrears Account to X’s Account.
- The fifth entry records the non-payment of call money by Y, resulting in a transfer of funds from the Calls in Arrears Account to Y’s Account.
Conclusion:
In conclusion, the journal entries for the issuance of equity shares and non-payment of calls help to keep track of the financial transactions of the company. It is important for companies to ensure that shareholders pay their dues on time to avoid any discrepancies in their books.
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A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company?
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A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company?.
A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company?.
Solutions for A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company? in English & in Hindi are available as part of our courses for B Com.
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Here you can find the meaning of A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company? defined & explained in the simplest way possible. Besides giving the explanation of
A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company?, a detailed solution for A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company? has been provided alongside types of A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company? theory, EduRev gives you an
ample number of questions to practice A Ltd . issued 10,000 equity shares of Rs 10 each ,payable as Rs 1 on application , Rs 2 on allotment and Rs 7 on call. All money were duly received with the following exceptions: X, who holds 100 shares failed to pay rhe money on allotment and calls. Y, who holds 50 shares failed to pay the money on calls. Prepare Journal entries in the books of company? tests, examples and also practice B Com tests.
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