Page 334 - VIRANSH COACHING CLASSES

5. Equity share First and Final Call A/c .................Dr. 62,500
To Equity Share Capital A/c 62,500
(Being Equity share 1st & Final Call Money on 25000
shares @ ` 2.50 per share due)

6. Bank A/c ............................................................Dr. 56,250
Calls in Arreas A/c ..............................................Dr. 6,250
To Equity Share First & Final Call A/c 62,500
(Being share first & Final call on 22,500 shares @ `
2.50 per share received)

Balance Sheet of Girish & Co. Ltd.

Liabilities Amount Amount Assets Amount Amount
` ` ` `
Share Capital 2,50,000 Bank 2,43,750

Less : Calls in Arrears 6,250 2,43,750

2,43,750 2,43,750

Note - Entry for the receipt of First & Final Call can also be made as follows -

Bank A/c Dr. 56,250
To Equity Share First & Final call A/c 56,250

(B) Calls in Advance -
Company may receive Call in Advance. The amount paid by the shareholder of a company
before the particular call is made is known as Calls in Advance. It is the liability of the company
and should be transferred to Calls in Advance Account. It is adjusted with the respective call
made in future, till then it is shown as a liability in the Balance Sheet.

9 Archana Ltd. issues 10000 shares of ` 10 each at ` 12 payable as
` → 3 on Application
` → 5 on Allotment (with premium)

` → 4 on First Final Call
Applications were received for 8000 shares only. Ketan a holder of 400 shares made the full
payment at the time of Allotment.

Record the above transactions in the Books of Archana Ltd.

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