Q. 5. OR
Akshat Co. Ltd. made an issue of 10,000 equity shares of ₹ 10 each, payable as follows:

| Particulars | Amount |
| --- | --- |
| On application | ₹ 2 per share |
| On allotment | ₹ 4 per share |
| On first call | ₹ 3 per share |
| On second and final call | ₹ 1 per shar

Question

Q. 5. OR
Akshat Co. Ltd. made an issue of 10,000 equity shares of ₹ 10 each, payable as follows:

| Particulars | Amount |
| --- | --- |
| On application | ₹ 2 per share |
| On allotment | ₹ 4 per share |
| On first call | ₹ 3 per share |
| On second and final call | ₹ 1 per share |

The company received applications for 15,000 equity shares of which applications for 5,000 equity shares were rejected and money refunded. All the shareholders paid upto the second call except Kavita, the allottee of 1,000 equity shares who failed to pay upto the final call.
Pass Journal Entries in the books of Akshat Co. Ltd.

Accepted Answer

>

> [!TLDR]
> Application money on 15,000 shares (₹ 30,000) is received; 5,000 rejected shares are refunded ₹ 10,000 and 10,000 shares allotted. Allotment ₹ 40,000 and first call ₹ 30,000 are fully received; on the second and final call of ₹ 10,000, Kavita (1,000 shares) does not pay ₹ 1,000, shown as Calls in Arrears. Paid-up capital = ₹ 99,000.
>
> Working notes:
> - Applications received 15,000 shares; rejected 5,000 shares (refund 5,000 x ₹ 2 = ₹ 10,000); allotted 10,000 shares.
> - Second and final call due = 10,000 x ₹ 1 = ₹ 10,000; received from all except Kavita (1,000 x ₹ 1 = ₹ 1,000 in arrears), so ₹ 9,000 received.
>
> Journal Entries in the books of Akshat Co. Ltd:
>
> | Particulars | Debit (₹) | Credit (₹) |
> | --- | --- | --- |
> | Bank A/c ... Dr. / To Equity Share Application A/c [Application money on 15,000 shares @ ₹ 2] | 30,000 | 30,000 |
> | Equity Share Application A/c ... Dr. / To Equity Share Capital A/c 20,000, To Bank A/c 10,000 [10,000 shares @ ₹ 2 to capital; 5,000 shares @ ₹ 2 refunded] | 30,000 | 30,000 |
> | Equity Share Allotment A/c ... Dr. / To Equity Share Capital A/c [Allotment due on 10,000 shares @ ₹ 4] | 40,000 | 40,000 |
> | Bank A/c ... Dr. / To Equity Share Allotment A/c [Allotment money received] | 40,000 | 40,000 |
> | Equity Share First Call A/c ... Dr. / To Equity Share Capital A/c [First call due on 10,000 shares @ ₹ 3] | 30,000 | 30,000 | …

Term	Meaning
At par	Issue price equals the face (nominal) value
At premium	Issue price is more than the face value
At discount	Issue price is less than the face value
At loan	Not a mode of issuing shares at all
…

Particulars	Amount
On application	₹ 2 per share
On allotment	₹ 4 per share
On first call	₹ 3 per share
On second and final call	₹ 1 per share

Particulars	Debit (₹)	Credit (₹)
Bank A/c ... Dr. / To Equity Share Application A/c [Application money on 15,000 shares @ ₹ 2]	30,000	30,000
Equity Share Application A/c ... Dr. / To Equity Share Capital A/c 20,000, To Bank A/c 10,000 [10,000 shares @ ₹ 2 to capital; 5,000 shares @ ₹ 2 refunded]	30,000	30,000
Equity Share Allotment A/c ... Dr. / To Equity Share Capital A/c [Allotment due on 10,000 shares @ ₹ 4]	40,000	40,000
Bank A/c ... Dr. / To Equity Share Allotment A/c [Allotment money received]	40,000	40,000
Equity Share First Call A/c ... Dr. / To Equity Share Capital A/c [First call due on 10,000 shares @ ₹ 3]	30,000	30,000

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