Amar Limited issued 20,000 Equity shares of, 10 each at a premium of 10%, payable 2on application; 4on allotment (including premium); 2on first call…

Entry No. Particulars L.F. Debit Amount (₹) Credit Amount (₹) 1 Bank A/c Dr. 40,000 To Equity Share Application A/c 40,000 (Money received on applications for 20,000 shares @2 per share) 2 Equity Share Application A/c Dr. 40,000 To Equity Share Capital A/c 40,000 (Transfer of application money on 20,000 shares to share capital) 3 Equity Share Allotment A/c Dr. 80,000 To Equity Share Capital A/c 60,000 To Securities Premium A/c 20,000 (Amount due on the allotment of 20,000 shares @3 per share and Securities Premium @1 per share) 4 Bank A/c Dr. 80,000 To Equity Share Allotment A/c 80,000 (Allotment money received) 5 Equity Share First Call A/c Dr. 40,000 To Equity Share Capital A/c 40,000 (Being first call made due on 20,000 shares at 2 per share) 6 Bank A/c Dr. 46,000 To Equity Share First Call A/c 40,000 To Calls in Advance A/c 6,000 (Being first call money received along with calls in advance on 2,000 shares at 3 per share) 7 Equity Share Final Call A/c Dr. 60,000 To Equity Share Capital A/c 60,000 (Being final call made due on 20,000 shares at 3 each) 8 Bank A/c Dr. 53,100 Calls in Advance A/c Dr. 6,000 Calls in Arrears A/c Dr. 900 To Equity Share Final Call A/c 60,000 (Being final call received for 17,700 shares, calls in advance for 2,000 shares and calls in arrears on 300 shares adjusted) 9 Interest on Calls in Advance A/c Dr. 240 To Shareholders A/c 240 (Being interest made due on calls in advance of 6,000 at the rate of 12% p.a.) 10 Shareholders A/c Dr. 240 To Bank A/c 240 (Being payment of interest made to shareholder) 11 Shareholders A/c Dr. 15 To Interest on Calls in Arrears A/c 15 (Being interest on calls in arrears made due at the rate of 10%) 12 Bank A/c Dr. 615 To Calls in Arrears A/c 600 To Shareholders A/c 15 (Being money received from shareholder having 200 shares for calls in arrears and interest thereupon) 13 Shareholders A/c Dr. 10 To Interest on Calls in Arrears A/c 10 (Being interest on calls in arrears made due at the rate of 10%) 14 Bank A/c Dr. 310 To Calls in Arrears A/c 300 To Shareholders A/c 10 (Being money received from shareholder having 100 share for calls in arrears and interest thereupon) Calculation of Interest on Calls in Advance & Calls in Arrears: Interest on Calls in Advance = 6,000 x 12% x 4 / 12 = 240 Interest on Calls in Arrears 600x 10% x 3 / 12 = 15 Interest on Calls in Arrears 300x 10% x 4 / 12 = 10 Table F of The Companies Act, 2013 prescribes 10% and 12% 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.