ABC Ltd was registered with an authorized share capital of 5,00,000 divided into 50,000 equity shares of
Question:
ABC Ltd was registered with an authorized share capital of ₹5,00,000 divided into 50,000 equity shares of face value of ₹100 each. Of these, on December 1, the company issued 30,000 shares that were fully subscribed by the public. The amount was payable as follows:
On application ₹20; on allotment ₹30; ₹25 on first call and ₹25 on second call. The issue closed on December 3 and allotment was made on January 5. The allotment money was received on February 5, whereas first and second calls were made on May 5 and June 5, respectively. The amount due on first and second call was collected on June 5 and July 5, respectively. All the amounts were received except one shareholder holding 100 shares failed to pay the amount due on allotment that he/she paid with interest along with the first call. Another shareholder holding 200 shares paid the entire due money at the time of allotment. Interest @ 5% p.a. was charged on calls in arrears and an interest @ 6% p.a. was paid on calls received in advance. Journalize these transactions.
Step by Step Answer: