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Question
Muthu Ltd. issued 50,000 shares of ₹ 10 each payable as follows; ₹ 2 on the application; ₹ 4 on allotment; ₹ 4 on first and final, call.
All money payable was duly received except one shareholder holding 1,000 shares failed to pay the call money. Pass the necessary journal entries for calls by using calls in the arear account.
Solution
| Date | Particulars | L.F. | Debit Rs. | Credit Rs. |
| (1) | Share I And final A/c (50,000 × Rs. 4) Dr. To share capital A/c [Call money due] |
2,00,000 | 2,00,000 | |
| (2) | Bank A/c Dr. Calls in arrears A/c (1,000 × Rs. 4) Dr. To share I and final Call A/c [Call money received with the exception on 1,000 shares] |
1,96,000 4,000 |
2,00,000 |
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