Page 177 - ISCDEBK-12

Joint Stock Company—Issue of Shares 7.13

Shares First Call A/c ...Dr. 8,000
To Share Capital A/c 8,000
(Being the amount due on first call of 8,000 shares @ ` 1 per share)
Bank A/c ...Dr. 7,250
Calls-in-Arrears A/c ...Dr. 750
To Shares First Call A/c 8,000
(Being the amount received on the first call except on 750 shares
@` 1 per share) (WN 2)
Shares Second Call A/c ...Dr. 8,000
To Share Capital A/c 8,000
(Being the amount due on second call on 8,000 shares @ ` 1 per share)
Bank A/c ...Dr. 6,000
Calls-in-Arrears A/c ...Dr. 2,000
To Shares Second Call A/c 8,000
(Being the amount received on the second call except on 2,000 shares
@ ` 1 per share) (WN 3)

Share Capital A/c ...Dr. 3,750
To Forfeited Shares A/c 2,000
To Calls-in-Arrears A/c 1,750
(Being 750 shares forfeited) (WN 4)

Working Notes:
1. A holder of 250 shares paid only the application money. He has not paid the allotment and call money.
Therefore, the allotment money has been received on 7,750 shares (8,000 – 250) @ ` 1 each, i.e., ` 7,750.
2. First call money has not been paid by the holder of 250 shares and the holder of 500 shares. In total, the first
call money has not been received on 750 shares.
3. The second and final call money has not been paid by the holder of 250 shares, holder of 500 shares and
holder of 1,250 shares. In total, the second call money has not been received on 2,000 shares.
4. Amount Forfeited: `
(i) For 250 shares, application money @ ` 2 per share 500
(ii) For 500 shares, application money @ ` 2 per share and allotment money @ ` 1 per share 1,500
2,000

BALANCE SHEET as at ...
Particulars Note No. `
I. EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital 1 97,000
Total 97,000
II. ASSETS
1. Non-Current Assets
Fixed Assets (Tangible) 2 60,000
2. Current Assets
Cash and Bank Balances 3 37,000
Total 97,000