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Amar limited issued 20,000 Equity shares of, 10 each at a premium of 10% ,payable ₹2 on application, ₹4 on allotment ( including premium) ,₹2 on final call and balance on the final call . All the shares were fully subscribed. Mr. M who held 2000 shares paid full remaining amount on first call itself . The final call which was Made after 4 months from first call was fully paid except a shareholder having 200 shares and one another holding 100 shares . They paid their due amount after 3 months and 4 months respectively along with interest on calls in arrears , Company also paid interest on calls in advance to Mr. M .The Company also paid interest on calls in advance to Mr. M .The Company maintains Calls in arrears and Calls in advance A/c .Give journal entries to record these transactions .Show working of interest calculation.?
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Amar limited issued 20,000 Equity shares of, 10 each at a premium of 1...
Journal Entries and Interest Calculation:

1. Issuing Equity Shares:
- Equity Share Capital A/c Dr 2,00,000
- Securities Premium A/c Dr 40,000
To Equity Share Application A/c 40,000
To Equity Share Allotment A/c 80,000
To Equity Share Final Call A/c 40,000

2. Payment by Mr. M on First Call:
- Bank A/c Dr (2000 shares * 10) 20,000
To Equity Share Final Call A/c 20,000

3. Payment of Final Call:
- Equity Share Final Call A/c Dr (200 shares * 2) 400
Equity Share Final Call A/c Dr (100 shares * 2) 200
To Shareholders A/c 600

4. Interest Calculation:
- Interest on Calls in Arrears = (Amount * Rate * Time)/100
- Interest on Calls in Arrears for 200 shares = (200 * 2 * 3)/100 = 12
- Interest on Calls in Arrears for 100 shares = (100 * 2 * 4)/100 = 8

5. Payment of Interest on Calls in Arrears:
- Interest on Calls in Arrears A/c Dr (200 shares * 12) 240
Interest on Calls in Arrears A/c Dr (100 shares * 8) 80
To Shareholders A/c 320

6. Payment of Interest on Calls in Advance to Mr. M:
- Shareholders A/c Dr (2000 shares * 10 * 3 months) 600
To Interest on Calls in Advance A/c 600
These entries show the issuance of equity shares, payments made by shareholders, calculation and payment of interest on calls in arrears and in advance. The interest calculation formula is applied to determine the interest payable by shareholders who paid their dues after the specified time period. It ensures that all transactions are recorded accurately in the company's books.
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Amar limited issued 20,000 Equity shares of, 10 each at a premium of 10% ,payable ₹2 on application, ₹4 on allotment ( including premium) ,₹2 on final call and balance on the final call . All the shares were fully subscribed. Mr. M who held 2000 shares paid full remaining amount on first call itself . The final call which was Made after 4 months from first call was fully paid except a shareholder having 200 shares and one another holding 100 shares . They paid their due amount after 3 months and 4 months respectively along with interest on calls in arrears , Company also paid interest on calls in advance to Mr. M .The Company also paid interest on calls in advance to Mr. M .The Company maintains Calls in arrears and Calls in advance A/c .Give journal entries to record these transactions .Show working of interest calculation.?
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Amar limited issued 20,000 Equity shares of, 10 each at a premium of 10% ,payable ₹2 on application, ₹4 on allotment ( including premium) ,₹2 on final call and balance on the final call . All the shares were fully subscribed. Mr. M who held 2000 shares paid full remaining amount on first call itself . The final call which was Made after 4 months from first call was fully paid except a shareholder having 200 shares and one another holding 100 shares . They paid their due amount after 3 months and 4 months respectively along with interest on calls in arrears , Company also paid interest on calls in advance to Mr. M .The Company also paid interest on calls in advance to Mr. M .The Company maintains Calls in arrears and Calls in advance A/c .Give journal entries to record these transactions .Show working of interest calculation.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Amar limited issued 20,000 Equity shares of, 10 each at a premium of 10% ,payable ₹2 on application, ₹4 on allotment ( including premium) ,₹2 on final call and balance on the final call . All the shares were fully subscribed. Mr. M who held 2000 shares paid full remaining amount on first call itself . The final call which was Made after 4 months from first call was fully paid except a shareholder having 200 shares and one another holding 100 shares . They paid their due amount after 3 months and 4 months respectively along with interest on calls in arrears , Company also paid interest on calls in advance to Mr. M .The Company also paid interest on calls in advance to Mr. M .The Company maintains Calls in arrears and Calls in advance A/c .Give journal entries to record these transactions .Show working of interest calculation.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amar limited issued 20,000 Equity shares of, 10 each at a premium of 10% ,payable ₹2 on application, ₹4 on allotment ( including premium) ,₹2 on final call and balance on the final call . All the shares were fully subscribed. Mr. M who held 2000 shares paid full remaining amount on first call itself . The final call which was Made after 4 months from first call was fully paid except a shareholder having 200 shares and one another holding 100 shares . They paid their due amount after 3 months and 4 months respectively along with interest on calls in arrears , Company also paid interest on calls in advance to Mr. M .The Company also paid interest on calls in advance to Mr. M .The Company maintains Calls in arrears and Calls in advance A/c .Give journal entries to record these transactions .Show working of interest calculation.?.
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