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Yoyo company issued 40,000 equity shares of no each at par payable as under: on application Rs. 2; on allotment 1; on first call Rs. 3 and on final call 4 per share, 4 months after first call). Amount due on application and allotment was duly received. One shareholder GOGO 2,000 shares could not pay the first call Another shareholder JOJO 1,000 shares had paid only the application money in time. All the arrears were also received at the time of final call. Journalize.?
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Yoyo company issued 40,000 equity shares of no each at par payable as ...
Journal Entry for Issuance of Equity Shares with Calls in Arrears
Issuance of Equity Shares
Date | Particulars | Dr. | Cr.
--- | --- | --- | ---
| | Bank A/c | | 1,60,000
| | Equity Share Capital A/c | 1,60,000 |
Yoyo company issued 40,000 equity shares of Rs.10 each at par, payable in four installments, i.e., on application, allotment, first call, and final call.
On Application
Date | Particulars | Dr. | Cr.
--- | --- | --- | ---
| | Bank A/c | 80,000 |
| | Share Application A/c | 80,000 |
The amount due on application, i.e., Rs.2 per share was duly received.
On Allotment
Date | Particulars | Dr. | Cr.
--- | --- | --- | ---
| | Bank A/c | 40,000 |
| | Share Allotment A/c | 40,000 |
The amount due on allotment, i.e., Rs.1 per share was duly received.
On First Call
Date | Particulars | Dr. | Cr.
--- | --- | --- | ---
| | Share First Call A/c | 1,20,000 |
| | Share Capital A/c | 1,20,000 |
The first call of Rs.3 per share was made, and the amount due was Rs.1,20,000. However, GOGO, who held 2,000 shares, could not pay the first call.
On Final Call
Date | Particulars | Dr. | Cr.
--- | --- | --- | ---
| | Share Final Call A/c | 1,60,000 |
| | Share Capital A/c | 1,60,000 |
The final call of Rs.4 per share was made, and all the arrears, including the first call, were received at the time of the final call. JOJO, who held 1,000 shares, had paid only the application money on time.
Bad Debts
Date | Particulars | Dr. | Cr.
--- | --- | --- | ---
| | GOGO A/c | 6,000 |
| | Bad Debts A/c | 6,000 |
As GOGO could not pay the first call of Rs.3 per share, his shares were forfeited. The forfeited shares were reissued to someone else, and the amount received from the reissue was credited to the Forfeited Share A/c.
Explanation:
In this journal entry, we have recorded the issuance of equity shares by Yoyo company and the subsequent calls made on those shares. The total amount received from the issue of shares was Rs.1,60,000, which was credited to the Equity Share Capital A/c. The calls made on the shares were recorded separately in the Share First Call A/c and Share Final Call A/c. The shareholders who did not pay the calls on time were dealt with separately. GOGO, who could not pay the first call, had his shares forfeited and was recorded in the GOGO A/c. JOJO, who had paid
Issuance of Equity Shares
Date | Particulars | Dr. | Cr.
--- | --- | --- | ---
| | Bank A/c | | 1,60,000
| | Equity Share Capital A/c | 1,60,000 |
Yoyo company issued 40,000 equity shares of Rs.10 each at par, payable in four installments, i.e., on application, allotment, first call, and final call.
On Application
Date | Particulars | Dr. | Cr.
--- | --- | --- | ---
| | Bank A/c | 80,000 |
| | Share Application A/c | 80,000 |
The amount due on application, i.e., Rs.2 per share was duly received.
On Allotment
Date | Particulars | Dr. | Cr.
--- | --- | --- | ---
| | Bank A/c | 40,000 |
| | Share Allotment A/c | 40,000 |
The amount due on allotment, i.e., Rs.1 per share was duly received.
On First Call
Date | Particulars | Dr. | Cr.
--- | --- | --- | ---
| | Share First Call A/c | 1,20,000 |
| | Share Capital A/c | 1,20,000 |
The first call of Rs.3 per share was made, and the amount due was Rs.1,20,000. However, GOGO, who held 2,000 shares, could not pay the first call.
On Final Call
Date | Particulars | Dr. | Cr.
--- | --- | --- | ---
| | Share Final Call A/c | 1,60,000 |
| | Share Capital A/c | 1,60,000 |
The final call of Rs.4 per share was made, and all the arrears, including the first call, were received at the time of the final call. JOJO, who held 1,000 shares, had paid only the application money on time.
Bad Debts
Date | Particulars | Dr. | Cr.
--- | --- | --- | ---
| | GOGO A/c | 6,000 |
| | Bad Debts A/c | 6,000 |
As GOGO could not pay the first call of Rs.3 per share, his shares were forfeited. The forfeited shares were reissued to someone else, and the amount received from the reissue was credited to the Forfeited Share A/c.
Explanation:
In this journal entry, we have recorded the issuance of equity shares by Yoyo company and the subsequent calls made on those shares. The total amount received from the issue of shares was Rs.1,60,000, which was credited to the Equity Share Capital A/c. The calls made on the shares were recorded separately in the Share First Call A/c and Share Final Call A/c. The shareholders who did not pay the calls on time were dealt with separately. GOGO, who could not pay the first call, had his shares forfeited and was recorded in the GOGO A/c. JOJO, who had paid
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Yoyo company issued 40,000 equity shares of no each at par payable as under: on application Rs. 2; on allotment 1; on first call Rs. 3 and on final call 4 per share, 4 months after first call). Amount due on application and allotment was duly received. One shareholder GOGO 2,000 shares could not pay the first call Another shareholder JOJO 1,000 shares had paid only the application money in time. All the arrears were also received at the time of final call. Journalize.?
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Yoyo company issued 40,000 equity shares of no each at par payable as under: on application Rs. 2; on allotment 1; on first call Rs. 3 and on final call 4 per share, 4 months after first call). Amount due on application and allotment was duly received. One shareholder GOGO 2,000 shares could not pay the first call Another shareholder JOJO 1,000 shares had paid only the application money in time. All the arrears were also received at the time of final call. Journalize.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Yoyo company issued 40,000 equity shares of no each at par payable as under: on application Rs. 2; on allotment 1; on first call Rs. 3 and on final call 4 per share, 4 months after first call). Amount due on application and allotment was duly received. One shareholder GOGO 2,000 shares could not pay the first call Another shareholder JOJO 1,000 shares had paid only the application money in time. All the arrears were also received at the time of final call. Journalize.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Yoyo company issued 40,000 equity shares of no each at par payable as under: on application Rs. 2; on allotment 1; on first call Rs. 3 and on final call 4 per share, 4 months after first call). Amount due on application and allotment was duly received. One shareholder GOGO 2,000 shares could not pay the first call Another shareholder JOJO 1,000 shares had paid only the application money in time. All the arrears were also received at the time of final call. Journalize.?.
Yoyo company issued 40,000 equity shares of no each at par payable as under: on application Rs. 2; on allotment 1; on first call Rs. 3 and on final call 4 per share, 4 months after first call). Amount due on application and allotment was duly received. One shareholder GOGO 2,000 shares could not pay the first call Another shareholder JOJO 1,000 shares had paid only the application money in time. All the arrears were also received at the time of final call. Journalize.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Yoyo company issued 40,000 equity shares of no each at par payable as under: on application Rs. 2; on allotment 1; on first call Rs. 3 and on final call 4 per share, 4 months after first call). Amount due on application and allotment was duly received. One shareholder GOGO 2,000 shares could not pay the first call Another shareholder JOJO 1,000 shares had paid only the application money in time. All the arrears were also received at the time of final call. Journalize.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Yoyo company issued 40,000 equity shares of no each at par payable as under: on application Rs. 2; on allotment 1; on first call Rs. 3 and on final call 4 per share, 4 months after first call). Amount due on application and allotment was duly received. One shareholder GOGO 2,000 shares could not pay the first call Another shareholder JOJO 1,000 shares had paid only the application money in time. All the arrears were also received at the time of final call. Journalize.?.
Solutions for Yoyo company issued 40,000 equity shares of no each at par payable as under: on application Rs. 2; on allotment 1; on first call Rs. 3 and on final call 4 per share, 4 months after first call). Amount due on application and allotment was duly received. One shareholder GOGO 2,000 shares could not pay the first call Another shareholder JOJO 1,000 shares had paid only the application money in time. All the arrears were also received at the time of final call. Journalize.? in English & in Hindi are available as part of our courses for Commerce.
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Yoyo company issued 40,000 equity shares of no each at par payable as under: on application Rs. 2; on allotment 1; on first call Rs. 3 and on final call 4 per share, 4 months after first call). Amount due on application and allotment was duly received. One shareholder GOGO 2,000 shares could not pay the first call Another shareholder JOJO 1,000 shares had paid only the application money in time. All the arrears were also received at the time of final call. Journalize.?, a detailed solution for Yoyo company issued 40,000 equity shares of no each at par payable as under: on application Rs. 2; on allotment 1; on first call Rs. 3 and on final call 4 per share, 4 months after first call). Amount due on application and allotment was duly received. One shareholder GOGO 2,000 shares could not pay the first call Another shareholder JOJO 1,000 shares had paid only the application money in time. All the arrears were also received at the time of final call. Journalize.? has been provided alongside types of Yoyo company issued 40,000 equity shares of no each at par payable as under: on application Rs. 2; on allotment 1; on first call Rs. 3 and on final call 4 per share, 4 months after first call). Amount due on application and allotment was duly received. One shareholder GOGO 2,000 shares could not pay the first call Another shareholder JOJO 1,000 shares had paid only the application money in time. All the arrears were also received at the time of final call. Journalize.? theory, EduRev gives you an
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