Arpit Ltd., with an authorized capital of 20,00,000 divided into Equity shares of 10 each, on 1st June, 2023, invited applications for issuing -…

In the books of Arpit Ltd Journal Entries Date Particulars L.F. Debit Amount (₹) Credit Amount (₹) 1-6-23 Bank A/c Dr. 6,00,000 To Equity Share Application A/c 6,00,000 (Money received on applications for3,00,000 shares @2 per share) 1-7-23 Equity Share Application A/c Dr. 6,00,000 To Equity Share Capital A/c 6,00,000 (Transfer of application money on 3,00,000 shares to share capital) 1-7-23 Equity Share Allotment A/c Dr. 21,00,000 To Equity Share Capital A/c 6,00,000 To Securities Premium 15,00,000 (Amount due on the allotment of3,00,000 shares @2 per share and securities premium of 5per share) 1-7-23 Bank A/c Dr. 22,20,000 To Equity Share Allotment A/c 21,00,000 To Calls in Advance 1,20,000 (Allotment money received along with calls in advance on 20,000 shares) 1-11-23 Equity Share First Call A/c Dr. 9,00,000 To Equity Share Capital A/c 9,00,000 (Being first call due on 3,00,000 shares at 3 per share) 1-11-23 Bank A/c Dr. 8,40,000 Calls in Advance A/c Dr. 60,000 To Equity Share First Call A/c 9,00,000 (Being first call money received on 2,80,000 shares and calls in advance on 20,000 shares at 3 per share adjusted) 1-1-24* Equity Share Final Call A/c Dr. 9,00,000 To Equity Share Capital A/c 9,00,000 (Being final call made due on 3,00,000 shares at 3 each) 1-1-24 Bank A/c Dr. 8,25,000 Calls in Advance A/c Dr. 60,000 Calls in Arrears A/c Dr. 15,000 To Equity Share Final Call A/c 9,00,000 (Being final call received for2,75,000 shares and calls in advance for20,000 shares adjusted) 1-1-24 Interest on Calls in Advance A/c Dr. 6,000 To Shareholders A/c 6,000 (Being interest made due on calls in advance at the rate of12% p.a.) 1-1-24 Shareholders A/c Dr. 6,000 To Bank A/c 6,000 (Being payment of interest made to shareholder) 1-3-24 Shareholders A/c Dr. 250 To Interest on Calls in Arrears A/c 250 (Being interest on calls in arrears made due at the rate of10%) 1-3-24** Bank A/c Dr. 15,250 To Calls in Arrears A/c 15,000 To Shareholders A/c 250 (Being money received from shareholder for calls in arrears and interest thereupon) Calculation of Interest on Calls in Advance & Calls in Arrears: Interest on Calls in Advance First Call from 1 st July, 2023 to 1 st Nov, 2023 = 60,000 x 12% x 4 /12 = 2,400 Final Call from 1 st July, 2023 to 1st, Jan, 2024 = 60,000 x 12% x 6 /12 = 3,600 Total - 6,000 Interest on Calls in Arrears from 1 st Jan, 2024 to 1 st March, 202415,000 x 10% x 2 /12 = 250 Alternatively, the following entries can also be passed for entries pertaining to money received from shareholders from call in arrears and calls in advance and interest thereupon. Amount (in ₹) * 1/1/2024 Bank A/c Dr. 8,25,000 Calls in advance A/c Dr. 60,000 To Equity Share Final Call A/c 8,85,000 (Receipt of final call for1,75,000 shares and call -in advance for20,000 shares adjusted) ** 1/3/2024 Bank A/c Dr. 15,250 To Equity Share Final Call A/c 15,000 To Shareholders A/c 250 (Being money received from shareholders for calls -in-arrear and interest thereupon)