Question

Question 30

Al-walan Ltd. issued 20,000 shares of $ 50 each at a premium of $ 5 per share, payable as:

On application $ 10 per share

On allotment $ 25 (including $ 5 premium) per share

On first call $ 10 per share

On final call $ 10 per share

Applications were received for 25,000 shares and allotment was made to 20,000.  Applications for 5000 shares were rejected all together and application money was returned. Sultan, to whom 1,000 shares were allotted, failed to pay the final calls.

The journal entries of the final call are:

A.

Particulares	Dr	Cr	Particulares	Dr	Cr
Final call   A/c             Share Capital A/	250,000	250,000	Bank             A/c                                   Final call   A/c	250,000	250,000

B.

Particulares	Dr	Cr	Particulares	Dr	Cr
Bank             A/c                                  Final call   A/c	200,000	200,000	Final call   A/c                      Share Capital A/	200,000	200,000

C.

Particulares	Dr	Cr	Particulares	Dr	Cr
Final call   A/c                      Share Capital A/	250,000	250,000	Bank             A/c Calls in Arrears' A/c        Final call A/c	240,000 10000	250,000

D.

Particulares	Dr	Cr	Particulares	Dr	Cr
Final call   A/c                      Share Capital A/	200,000	200,000	Bank             A/c Calls in Arrears' A/c                Final call A/c	190,000 10000	200,000

Answer 1