Question

X Ltd. made its first call of Rs 10 per share on 1st July 2014. Pratiksha holding 300 shares failed to pay the call money. She could pay the money only on 31st December, 2014. Company charged interest @12% per annum. Make necessary journal entry for the interest charged by the company. 

Answer 1

Amount of interest due = (3,000 x 12/100 x 6/12) = 180

                     Journal Entries