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A limited company with registered capital of 500000in shares of 10 each issued on first call 25000shares payable Rs1 for application,rs2 for allotment and rs3 for first call three months later all the money payable on allotment were duly received but on first call being made one shareholders paid the entire balance on his holding of rs300 shares and five shareholders with a total holding of rs1000 failed to pay the first call on their shares pass necessary journal entry.?
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A limited company with registered capital of 500000in shares of 10 eac...
**Journal Entry for Non-payment of First Call on Shares**
**1. Introduction**
In this scenario, a limited company with a registered capital of Rs. 500,000, divided into shares of Rs. 10 each, has issued 25,000 shares on the first call. The payment terms for the shares include Rs. 1 for application, Rs. 2 for allotment, and Rs. 3 for the first call, which is to be paid three months later. However, while all the money payable on allotment was duly received, one shareholder paid the entire balance on his holding of 300 shares, and five shareholders with a total holding of Rs. 1,000 failed to pay the first call on their shares.
**2. Journal Entry for the Non-payment of First Call on Shares**
To record the non-payment of the first call on shares, we need to make the following journal entry:
**Date: [Date of First Call]**
**Particulars** | **Debit** | **Credit**
--- | --- | ---
Share Capital (300 shares @ Rs. 10 each) | Rs. 3,000 |
Calls-in-Arrears (300 shares @ Rs. 3 per share) | | Rs. 900
Calls-in-Advance (300 shares @ Rs. 1 per share) | | Rs. 300
Calls-in-Arrears (5 shareholders @ Rs. 1,000) | | Rs. 1,000
Calls-in-Advance (5 shareholders @ Rs. 1 per share) | | Rs. 5
**Explanation:**
1. The Share Capital account is debited with Rs. 3,000, representing the total value of the shares held by the shareholder who paid the entire balance on his holding of 300 shares.
2. The Calls-in-Arrears account is credited with Rs. 900, representing the amount unpaid on the first call for the 300 shares held by the shareholder.
3. The Calls-in-Advance account is credited with Rs. 300, representing the amount paid in advance on the first call for the 300 shares held by the shareholder.
4. The Calls-in-Arrears account is credited with Rs. 1,000, representing the total amount unpaid on the first call for the shares held by the five shareholders who failed to pay.
5. The Calls-in-Advance account is credited with Rs. 5, representing the total amount paid in advance on the first call for the shares held by the five shareholders.
**3. Conclusion**
By recording the journal entry for the non-payment of the first call on shares, the company can account for the unpaid amounts and maintain accurate records of its shareholders' obligations. This entry reflects the shareholders who failed to pay the first call and distinguishes between those who paid in advance and those who are in arrears. It is important for the company to follow up with the non-paying shareholders and take appropriate actions to collect the outstanding payments.
**1. Introduction**
In this scenario, a limited company with a registered capital of Rs. 500,000, divided into shares of Rs. 10 each, has issued 25,000 shares on the first call. The payment terms for the shares include Rs. 1 for application, Rs. 2 for allotment, and Rs. 3 for the first call, which is to be paid three months later. However, while all the money payable on allotment was duly received, one shareholder paid the entire balance on his holding of 300 shares, and five shareholders with a total holding of Rs. 1,000 failed to pay the first call on their shares.
**2. Journal Entry for the Non-payment of First Call on Shares**
To record the non-payment of the first call on shares, we need to make the following journal entry:
**Date: [Date of First Call]**
**Particulars** | **Debit** | **Credit**
--- | --- | ---
Share Capital (300 shares @ Rs. 10 each) | Rs. 3,000 |
Calls-in-Arrears (300 shares @ Rs. 3 per share) | | Rs. 900
Calls-in-Advance (300 shares @ Rs. 1 per share) | | Rs. 300
Calls-in-Arrears (5 shareholders @ Rs. 1,000) | | Rs. 1,000
Calls-in-Advance (5 shareholders @ Rs. 1 per share) | | Rs. 5
**Explanation:**
1. The Share Capital account is debited with Rs. 3,000, representing the total value of the shares held by the shareholder who paid the entire balance on his holding of 300 shares.
2. The Calls-in-Arrears account is credited with Rs. 900, representing the amount unpaid on the first call for the 300 shares held by the shareholder.
3. The Calls-in-Advance account is credited with Rs. 300, representing the amount paid in advance on the first call for the 300 shares held by the shareholder.
4. The Calls-in-Arrears account is credited with Rs. 1,000, representing the total amount unpaid on the first call for the shares held by the five shareholders who failed to pay.
5. The Calls-in-Advance account is credited with Rs. 5, representing the total amount paid in advance on the first call for the shares held by the five shareholders.
**3. Conclusion**
By recording the journal entry for the non-payment of the first call on shares, the company can account for the unpaid amounts and maintain accurate records of its shareholders' obligations. This entry reflects the shareholders who failed to pay the first call and distinguishes between those who paid in advance and those who are in arrears. It is important for the company to follow up with the non-paying shareholders and take appropriate actions to collect the outstanding payments.
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A limited company with registered capital of 500000in shares of 10 each issued on first call 25000shares payable Rs1 for application,rs2 for allotment and rs3 for first call three months later all the money payable on allotment were duly received but on first call being made one shareholders paid the entire balance on his holding of rs300 shares and five shareholders with a total holding of rs1000 failed to pay the first call on their shares pass necessary journal entry.?
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A limited company with registered capital of 500000in shares of 10 each issued on first call 25000shares payable Rs1 for application,rs2 for allotment and rs3 for first call three months later all the money payable on allotment were duly received but on first call being made one shareholders paid the entire balance on his holding of rs300 shares and five shareholders with a total holding of rs1000 failed to pay the first call on their shares pass necessary journal entry.? 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 limited company with registered capital of 500000in shares of 10 each issued on first call 25000shares payable Rs1 for application,rs2 for allotment and rs3 for first call three months later all the money payable on allotment were duly received but on first call being made one shareholders paid the entire balance on his holding of rs300 shares and five shareholders with a total holding of rs1000 failed to pay the first call on their shares pass necessary journal entry.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A limited company with registered capital of 500000in shares of 10 each issued on first call 25000shares payable Rs1 for application,rs2 for allotment and rs3 for first call three months later all the money payable on allotment were duly received but on first call being made one shareholders paid the entire balance on his holding of rs300 shares and five shareholders with a total holding of rs1000 failed to pay the first call on their shares pass necessary journal entry.?.
A limited company with registered capital of 500000in shares of 10 each issued on first call 25000shares payable Rs1 for application,rs2 for allotment and rs3 for first call three months later all the money payable on allotment were duly received but on first call being made one shareholders paid the entire balance on his holding of rs300 shares and five shareholders with a total holding of rs1000 failed to pay the first call on their shares pass necessary journal entry.? 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 limited company with registered capital of 500000in shares of 10 each issued on first call 25000shares payable Rs1 for application,rs2 for allotment and rs3 for first call three months later all the money payable on allotment were duly received but on first call being made one shareholders paid the entire balance on his holding of rs300 shares and five shareholders with a total holding of rs1000 failed to pay the first call on their shares pass necessary journal entry.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A limited company with registered capital of 500000in shares of 10 each issued on first call 25000shares payable Rs1 for application,rs2 for allotment and rs3 for first call three months later all the money payable on allotment were duly received but on first call being made one shareholders paid the entire balance on his holding of rs300 shares and five shareholders with a total holding of rs1000 failed to pay the first call on their shares pass necessary journal entry.?.
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A limited company with registered capital of 500000in shares of 10 each issued on first call 25000shares payable Rs1 for application,rs2 for allotment and rs3 for first call three months later all the money payable on allotment were duly received but on first call being made one shareholders paid the entire balance on his holding of rs300 shares and five shareholders with a total holding of rs1000 failed to pay the first call on their shares pass necessary journal entry.?, a detailed solution for A limited company with registered capital of 500000in shares of 10 each issued on first call 25000shares payable Rs1 for application,rs2 for allotment and rs3 for first call three months later all the money payable on allotment were duly received but on first call being made one shareholders paid the entire balance on his holding of rs300 shares and five shareholders with a total holding of rs1000 failed to pay the first call on their shares pass necessary journal entry.? has been provided alongside types of A limited company with registered capital of 500000in shares of 10 each issued on first call 25000shares payable Rs1 for application,rs2 for allotment and rs3 for first call three months later all the money payable on allotment were duly received but on first call being made one shareholders paid the entire balance on his holding of rs300 shares and five shareholders with a total holding of rs1000 failed to pay the first call on their shares pass necessary journal entry.? theory, EduRev gives you an
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