Journal Entries
Date Particulars L.F. Amount
(Dr.)
Amount
(Cr.)
Bank A/ c (20000 X 2) Dr.
To Equity Share application A/ c
(Being application money received @ 2 per
share on 20,000 equity shares)
40,000
40,000
Equity Share application A/ c Dr.
To Equity Share Capital A/ c
(Being application money transferred to equity
share capital A/ c)
40,000
40,000
Equity Share allotment A/ c (20000 X 4) Dr.
To Equity Share Capital A/ c (20000 x 3)
To Securities Premium A/ c (20000 x 1)
(Being allotment money made due on 20000
equity shares)
80,000
60,000
20,000
Bank A/c Dr.
To Equity Share allotment A/ c
(Being allotment money received)
80,000
80,000
Equity Share First Call A/ c (20000 X 2) Dr.
To Equity Share Capital A/ c
40,000
40,000
(Being First Call money made due on 20000
equity share)
Bank A/c Dr.
To Equity Share First Call A/ c
To Calls in Advance A/ c (2000 X 3)
(Being First Call money received along with
calls in advance)
46,000
40,000
6,000
Equity Share final call A/ c (20000 X 3) Dr.
To Equity Share Capital A/ c
(Being final call money made due @ 3 per share
on 20000 equity shares of 10 each)
60,000
60,000
Bank A/c Dr.
Calls in Advance A/ c Dr.
Calls in arrear A/ c (300 X 3) Dr.
To Equity Share Final Call A/ c
(Being final call money received on 17700
equity shares)
53,100
6,000
900
60,000
Interest on Calls in Advance A/ c Dr.
To Bank A/c
(Being interest on calls in advance paid)
240(W N1)
240
Bank A/c Dr.
To Interest on calls in arrears A/ c
To Calls in arrear A/ c (200 X 3)
(Being interest on calls in arrear received from
a shareholder (i) along with his arrear)
615
15 (WN2)
600
Bank A/ c Dr.
To Calls in arrear A/c (100 X 3)
To Interest on calls in arrears A/ c
(Being interest on calls in arrear received from
a shareholder (ii) along with his arrear)
310
300
10 (WN3)
Working Note:
1. Calculation of interest on calls in advance:
[200 x 3] x 12/100 x 4/12 = 240
2. Calculation of interest on calls in arrear:
On (i) (200 X 3) X 10/100 x 3/12 = 15
On (ii) (100 X 3) X l0/100 x 4/12 = 10