Question

Gama Ltd. issued 20,000 Equity shares of ₹ 10 each to the public, payable as follows:

₹ 2 on Application

₹ 3 on Allotment (on 1^st November, 2022)

₹ 5 on First & Final Call (on 1^st March, 2023)

Applications were received for 25,000 shares. The directors of the company accepted applications for 20,000 shares and refunded the application money on the remaining shares.
One shareholder who was allotted 30 shares paid the first and final call with allotment.
Another shareholder did not pay his allotment on 20 shares when due but paid it with the first and final call along with interest on calls-in-arrears.
The directors of the company charged interest on calls-in-arrears at the rate provided in Table F of the Companies Act, 2013. No interest was allowed on calls-in-advance.

You are required to pass journal entries to record the above transactions in the books of Gama Ltd.

Answer 1

Journal Entries
Date	Particulars	L. F.	Dr. (₹)	Dr. (₹)
2022	Bank A/c (25,000 × 2)   ...Dr.		50,000
	To Equity Share Application A/c			50,000
	(Being application money received)
	Equity Share Application A/c   ...Dr.		50,000
	To Equity Share Capital A/c (20,000 × 2)			40,000
	To Bank A/c (5,000 × 2)			10,000
	(Being application money transferred to Capital A/c and refunded)
1 Nov.	Equity Share Allotment A/c (20,000 × 3)   ...Dr.		60,000
	To Equity Share Capital A/c			60,000
	(Being allotment money due)
1 Nov.	Bank A/c   ...Dr.		60,090
	Calls in Arrears A/c (20 × 3)   ...Dr.		60
	To Equity Share Allotment A/c			60,000
	To Calls in Advance A/c (30 × 5)			150
	(Being allotment money received)
2023 1 Mar.	Equity Share First and Final Call A/c (20,000 × 5)   ...Dr.		1,00,000
	To Equity Share Capital A/c			1,00,000
	(Being first and final call due)
1 Mar.	Bank A/c   ...Dr.		99,910
	Calls in Advance A/c (30 × 5)		150
	To Equity Share First and Final Call A/c			1,00,000
	To Calls in Arrears A/c (20 × 3)			60
	(Being first & final call received)
2023	Sundry Members A/c   ...Dr.		2
	To Interest on Calls in Arrears A/c			2
	(Being interest on Calls in arrear due)
	Bank A/c   ...Dr.		2
	To Sundry Members A/c			2
	(Being interest on calls in arrear received)
	Interest on Calls in arrears A/c   ...Dr.		2
	To Statement on Profit & Loss			2
	(Being interest transferred to statement of profit & loss)

Working Note:

Interest on calls in arrears = `60xx10/100xx4/12` = ₹ 2