Question

Modern Ltd. offered to public 10,000 equity shares of Rs 10 each at Rs 11 per share. Amount was payable as follows :
On application Rs 3; on allotment 4 (including premium) and on first and final call Rs 4. Applications were received for 12,000 shares and directors allotted on pro-rata basis.
Rakesh, who applied for 240 shares paid call money along with allotment money. Sukesh to whom 100 shares were allotted paid allotment money along with call money. Give necessary journal entries.

Answer 1

Working Notes:

(1) Calculation of allotment money:

Sukesh not Paid allotment money of 100 shares.

200 shareholders had paid their 1st call on the time of allotment, it means advance payment. So, Calls in Advance = 200 x 4 = 800