Company AccountsQ-2 | Introduction to Company AccountsQuestion 5224 of 112
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A 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 first 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 the first call was fully paid except a shareholder having 200 shares and one another shareholder having 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 maintains Calls in Arrear and Calls in Advance A/c.
Give journal entries to record these transactions. Show workings of Interest calculation. (Ignore dates).
[June 2022, 15 Marks]; [MTP Jan, 2025; Modified; Figures-10X]

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Detailed Solution & Explanation

## Journal Entries | Particulars | L.F. | Amount (Dr.) | Amount (Cr.) | | :---------------------------------------------- | :--- | :----------- | :----------- | | Bank A/c (20000 X 2) | | 40,000 | | |   

About This Chapter: Partnership & Companies

Paper

Paper 1: Accounting

Weightage

15-20%

Key Topics

Admission, Retirement, Death, Shares, Debentures

This chapter covers Admission, Retirement, Death, Shares, Debentures and is part of Paper 1: Accounting in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 15-20% weightage. Focus on understanding core concepts rather than memorizing.

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