Question 6: Chapter 10 - Company Accounts Part I (Accounting For Shares)
Book Keeping Accountancy Solutions for Class 12 Commerce Accountancy
PRACTICAL PROBLEMS
(Call in arrears and Balance Sheet)
The Alfo Ltd. made an issue of 10,000 shares of Rs 20 each payable as follows-
Application Rs. 5
Allotment Rs. 10
First Call Rs. 2
Final Call Rs. 3
The company received applications for 15,000 shares of which applications for 5,000 shares were rejected and money refunded. The directors made all the calls. One share holders, holding 100 shares failed to pay first and final call. The expenses of issue amounted to Rs 5,000
Pass journal entries and show the Balance Sheet.
Note: Expenses on issue should be shown as an asset. Every year certain amount of expenses should be charged to P&L A/c.
Application Rs. 5
|
Allotment Rs. 10
|
First Call Rs. 2
|
Final Call Rs. 3
|
