Raghwan Limited issued - 60,000 Equity shares of, 10 each at a premium of 10%, payable 2on application; 4on allotment (including premium); 2on first…

Journal Entries in the books of Raghwan Ltd. Entry No. Particulars L.F. Debit Amount (₹) Credit Amount (₹) 1 Bank A/c Dr. 1,20,000 To Equity Share Application A/c 1,20,000 (Money received on applications for60,000 shares @2 per share) 2 Equity Share Application A/c Dr. 1,20,000 To Equity Share Capital A/c 1,20,000 (Transfer of application money on 60,000 shares to share capital) 3 Equity Share Allotment A/c Dr. 2,40,000 To Equity Share Capital A/c 1,80,000 To Securities Premium A/c 60,000 (Amount due on the allotment of60,000 shares @3 per share and Securities Premium @1 per share) 4 Bank A/c Dr. 2,40,000 To Equity Share Allotment A/c 2,40,000 (Allotment money received) 5 Equity Share First Call A/c Dr. 1,20,000 To Equity Share Capital A/c 1,20,000 (Being first call made due on 60,000 shares at 2 per share) 6 Bank A/c Dr. 1,38,000 To Equity Share First Call A/c 1,20,000 To Calls in Advance A/c 18,000 (Being first call money received along with calls in advance on 6,000 shares at 3 per share) 7 Equity Share Final Call A/c Dr. 1,80,000 To Equity Share Capital A/c 1,80,000 (Being final call made due on 60,000 shares at 3 each) 8 Bank A/c Dr. 1,59,300 Calls in Advance A/c Dr. 18,000 Calls in Arrears A/c Dr. 2,700 To Equity Share Final Call A/c 1,80,000 (Being final call received for53,100 shares, calls in advance for6,000 shares and calls in arrears on 900 shares adjusted) 9 Interest on Calls in Advance A/c Dr. 720 To Shareholders A/c 720 (Being interest made due on calls in advance of 18,000 at the rate of12% p.a.) 10 Shareholders A/c Dr. 720 To Bank A/c 720 (Being payment of interest made to shareholder) 11 Shareholders A/c Dr. 45 To Interest on Calls in Arrears A/c 45 (Being interest on calls in arrears made due at the rate of10%) 12 Bank A/c Dr. 1,845 To Calls in Arrears A/c 1,800 To Shareholders A/c 45 (Being money received from shareholder having200 shares for calls in arrears and interest thereupon) 13 Shareholders A/c Dr. 30 To Interest on Calls in Arrears A/c 30 (Being interest on calls in arrears made due at the rate of10%) 14 Bank A/c Dr. 930 To Calls in Arrears A/c 90 To Shareholders A/c 30 (Being money received from shareholder having300 share for calls in arrears and interest thereupon) Calculation of Interest on Calls in Advance & Calls in Arrears: Interest on Calls in Advance = 18,000 x 12% x 4 /12 = 720 Interest on Calls in Arrears - 1,800 x 10% x 3 /12 = 45 Interest on Calls in Arrears 900x 10% x 4 /12 = 30 Table F of The Companies Act,2013 prescribes10% and12% p.a. as the maximum rates respectively for calls in arrears and calls in advance. Accordingly, these rates have been considered while passing the above entries,