Company Accounts Notes - CA Anand Bhangariya

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.

12. COMPANY ACCOUNTS

1. INTRODUCTION
Capital funding process for types of business forms can be summarised as follows:
Business Organization Ownership Type of Capital Liability of Owners
Sole - Proprietorship Proprietor Capital Unlimited
Partnership Partners Partners' Capital Unlimited
Limited to issue price
Company Shareholders Share Capital
of shares held

2. SHARE CAPITAL
Total capital of the company is divided into a number of small indivisible units of a fixed
amount and each such unit is called a Share. The fixed value of a share, printed on the
share certificate is called nominal/par/face value of a share. However a company can issue
shares at a price different from the face value of shares. The liability of holder of shares
(called shareholders) is limited to the issue price of shares acquired by them.

Authorised Share Capital: A company estimates its maximum capital requirements.


Registrar of Companies puts a limit on the amount of capital, which a company is
authorised to raise during its lifetime and is called ‘Authorised Capital’. It is also referred
to as ‘Registered Capital or Nominal Capital’

Issued Share Capital: Portion of the share capital issued by the company is called ‘Issued
Capital’. Issued capital means and includes the nominal values of shares issued by the
company for: Cash, and Consideration other than cash to Promoters of a company and
Others. The remaining portion of the authorised capital may be termed as ‘Un-issued
Capital’

Subscribed Share Capital: It is that part of the issued share capital, which is subscribed
by the public. It includes the face value of shares issued by the company for consideration
other than cash.

Called-up Share Capital: The portion of the issue price of shares which a company has
demanded or called from shareholders is known as ‘Called –up Capital. The balance which
the company has decided to demand in future may be referred to as Uncalled Capital.

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.2

Paid up Share Capital: It is the portion of called up capital which is paid by the
shareholders. Whenever a particular amount is called by the company and the
shareholder(s) fails to pay the amount fully or partially, it is known as ‘Unpaid calls or
installments or call in arrears’ To calculate paid up capital, the amount of installment in
arrears is deducted from called up capital. In balance sheet called- up and paid capital are
shown together.

Reserve Share Capital: A company may decide by passing a special resolution that a
certain portion of its subscribed uncalled capital shall not be called up except in the event
of winding up of the company. Portion of the uncalled capital which a company has
decided to call only in case of liquidation of the company is called Reserve Liability/
Reserve Capital.
Reserve Capital is different from Capital Reserve, Capital reserve are part of ‘Reserve and
surplus’ and refer to those reserves which are not available for declaration of dividend.
These reserves may be used to write off capital losses such as discount on issue of shares.
These can also be used to issue bonus shares, subject to the condition, that reserve is
realized in cash. Thus, reserve capital which is portion of the uncalled capital to be called
up in the event of winding up of the company is entirely different in nature from capital
reserve which is created out of profits only.

Preference Shares:
Persons holding preference shares, called preference shareholders. They enjoy preferential
rights in the matter of Payment of dividend at a fixed rate. Repayment of capital in case
of holding up of the company.

3. TYPES OF PREFERENCE SHARES:


Cumulative Preference Shares: A cumulative preference share is one that carries the right
to a fixed amount of dividend or dividend at a fixed rate. Such a dividend is payable even
out of future profit if current year’s profits are insufficient for the purpose.

Non-Cumulative Preference Shares: A non Cumulative preference share carries with it the
right to a fixed amount dividend. In case no dividend is declared in a year due to any
reason, the right to receive such dividend for that year expires.

Participating Preference Shares: This category of preference share confers on the holder

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.3

the right to participate in the surplus profits, if any, after the equity shareholders have
been paid dividend at a stipulated rate.

Non- Participating Preference Shares: A share on which only a fixed rate of dividend is
paid every year, without any accompanying additional rights in profits and in the surplus
on winding up is called ‘Non Participating Preference Shares’

Redeemable Preference Shares: These are shares that a company may issue on the
condition that the company will repay after the fixed period or even earlier at company’s
discretion. The repayment on these shares is called redemption and is governed by Section
55 of the Companies Act, 2013.

Non-Redeemable Preference Shares: The preference shares, which do not carry with them
the arrangement regarding redemption, are called Non-redeemable Preference Shares.
According to Section 55, no company limited by shares shall issue irredeemable preference
shares or preference shares redeemable after the expiry of 20 years from the date of
issue. However a Company may issue preference shares redeemable after 20 years for
such infrastructure projects as may be specified, under the Companies Act, 2013.

Convertible Preference Shares: Shares give the right to the holder to get them converted
into equity shares at their option according to the terms and conditions of their issue.

Non-Convertible Preference Shares: When the holder of a preference share has not been
conferred the right to get his holding converted into equity share, it is called Non-
convertible Preference Shares.

Equity Shares:
Equity shares are those shares, which are not preference shares. It means that they do
not enjoy any preferential rights in the matter of payment of dividend or repayment of
capital. The rate of dividend on equity shares is recommended by the Board of Directors
and may vary from year to year. Companies Act 2013 permits issue of equity share capital
with differential rights as to dividend, voting or otherwise.

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.4

4. ISSUE OF SHARES FOR CASH:


A public company issues a prospectus inviting general public to subscribe for its shares. On
the basis of prospectus, applications are deposited in a scheduled bank by the interested
parties along with the amount payable at the time of application, in cash. First installment
paid along with application is called ‘Application Money’ Application money cannot be less
than 5% of the face value of shares. A company cannot proceed to allot shares unless
minimum subscription is received by the company.

5. SHARES ISSUED AT PAR


No Particulars LF Dr. Rs Cr. Rs.
1 For application money received
Bank / Cash A/c
To Equity Share application A/c
2 At the time of Allotment of shares
Equity Share Application A/c
To Equity Share Capital A/c
3 To record amount due on allotment
Equity share Allotment A/c
To Equity Share Capital A/c
4 For Allotment money received
Bank A/c
To Equity Share allotment A/c
5 When First & Final call is made
Equity share First & Final call A/c
To Equity Share Capital A/c
6 On receiving the call money
Bank A/c
To Equity share First & Final Call A/c

6. SHARES ISSUED AT PREMIUM


When a company issues its securities at a price more than the face value, it is said to be
an issue at a premium. i.e. at an amount more than the nominal or par value of shares.
Thus, where a share of the nominal value of ` 100 is issued at ` 105, it is said to have been
issued at a premium of 5 per cent.
When the issue is at a premium, the amount of premium may technically be called at any
stage of share capital transactions. However, premium is generally called with the amount

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.5

due on allotment, sometimes with the application of money and rarely with the call money.

Securities Premium Account may be used by the company

To write off To write off the expenses of or To pay premium on the


To issue bonus commission paid, or discount redemption of reference
preliminary
shares allowed on any of the securities securities or debentures of
expenses of the
company or debentures of the company the company.

When shares are issued at a premium, the journal entries are as follows
No Particulars LF Dr.Rs. Cr.Rs.
a) Premium amount called with Application money
I. Bank A/c Dr.
To Share Application A/c
[ Money received on application for shares@
Rs.per Shares including premium]
II. Share Application A/c Dr.
To Security Premium A/c
To Share Capital A/c
b) Premium amount called with Allotment money
I. Share Allotment A/c Dr.
To Share Capital A/c
To Securities Premium A/c
[Amount due on allotment of Shares@Rs. Per
share including premium]
II. BankA/c Dr.
To Share Allotment A/c
[Money received including premium consequent
upon allotment]

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.6

7. SHARESISSUED AT DISCOUNT
If shares are issue at an amount less than the nominal or par value of shares. The excess
of the nominal value over the issue price represents discount on the issue of shares. For
example, when a share of the nominal value of ` 100 is issued at ` 98, it is said to have
been issued at a discount of 2 per cent.
According to Section 53 of the Companies Act, 2013, a Company cannot issue shares at a
discount except in the case of issue of sweat equity shares (issued to employees and
directors). Thus any issue of shares at discount shall be void.

8. SUBSCRIPTION OF SHARES
Minimum Subscription
A public limited company cannot make any allotment of shares unless the amount of
minimum subscription stated in the prospectus has been subscribed and the sum payable
as application money for such shares has been paid to and received by the company.
As per guidelines of the Securities Exchange Board of India (SEBI) a company must receive
a minimum of 90% subscription against the entire issue., the subscription shall be
refunded to the applicants within 42 days from the date of closure of issue.

Full Subscription
Issue is fully subscribed if the number of shares offered for subscription and the number
of shares actually subscribed by the public are same.

Under Subscription
It means the number of shares offered for subscription is more than the number of shares
subscribed by the public. It must be remembered that shares can be allotted, in this case,
only when the minimum subscription is received.

Over Subscription
Over subscription is the application money received for more than the number of shares
offered to the public by a company.
Shares can be allotted to the applicants by a company in any manner it thinks proper.
• The company may reject some applicants in full i.e. no shares are allotted to some
applicants and application money is refunded.
• Usually multiple applications by the same persons are not considered.
• A third alternative is that a company may allot shares to the applicants on pro-rata
basis. Pro-rata allotment means allotment in proportion of shares applied

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.7

Under pro-rata allotment, the excess application money received is adjusted against the
amount due on allotment or calls.The entries are

No Particulars LF Dr. Rs. Cr. Rs.


1 On refund of application money to applicants to who
shares have not been allotted.
Share application A/c Dr.
To Bank A/c

2. When only part of shares applied for are allowed


Share application A/c Dr.
To Share Allotment A/c Dr.
To share calls in advance A/c

9. CALLS IN ADVANCE and CALLS IN ARREARS


Calls-in-Arrears
Sometimes shareholders fail to pay the amount due on allotment or calls. The total unpaid
amount on one or more installments is known as Calls-in-Arrears or Unpaid Calls. hence,
it is shown by way of deduction from ‘called-up capital’ to arrive at paid-up value of the
share capital. For recording ‘Calls-in-Arrears’, the following journal entry is recorded :
Calls-in-Arrears A/c Dr. [Amount of Unpaid Calls]
Bank A/c Dr. [Amount received]
To Share Allotment A/c [Total allotment money due]
To Share Calls A/c [Total Call money due]

Calls-in-Advance
Some shareholders may sometimes pay a part, or whole, of the amount not yet called up,
such amount is known as Calls-in-advance. According to Table F, interest at a rate not
exceeding 12 per cent p.a. is to be paid on such advance call money. This amount is credited
in Calls-in-Advance Account. The following entry is recorded:
Bank A/c Dr. [Call amount received in advance]
To Call-in-Advance A/c
When calls become actually due, calls-in-advance account is adjusted at the time of the
call. For this the following journal entry is recorded:
Calls-in-Advance A/c Dr. [Call amount received in advance]
Bank A/c Dr. [Remaining call money received, if any]

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.8

To Particular Call A/c [Call money due]


(Being call in advance adjusted and call money due received)

10. INTEREST ON CALLS-IN-ARREARS AND CALLS-IN-ADVANCE


Interest on calls in arrears is recoverable and that in respect of calls in advance is payable,
according to provisions in this regard in the articles of the company, at the rates mentioned
therein or those to be fixed by the directors, within the limits prescribed by the Articles.
Table F prescribes 10% and 12% p.a. as the maximum rates respectively for calls in arrears
and those in advance.
Interest on Calls in Arrears Interest on Calls in Advance
• It is payable by shareholders to company • It is payable by the Company to
on the calls due but remaining unpaid. Shareholders on the call money
received in advance but not yet due.

• As per Table F maximum prescribed rate • As per Table F maximum prescribed


is 10%. rate is 12%.

• Period considered : From the date call • Period considered: From the date
money was due to the date money is money was received to the day call was
finally received. finally made due.

• Directors have a right to waive off such • Shareholders are not entitled for any
interest in individual cases at their own dividend on calls in advance.
discretion.

• It is a nominal account in nature and is • It is a nominal account in nature with


credited to statement of profit and loss as interest being an expense for the
an income. company.

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.9

The journal entries for calls-in-arrears are as follows :


No Particulars LF Dr. Rs. Cr. Rs.
1 For interest receivable on calls-in-arrears
Shareholders’A/c Dr.
To Interest on calls-in-arrears A/c
(Being interest on calls in arrears at the rate of ...% made
due)

2. For receipt of interest


Bank A/c Dr.
To Shareholders’A/c

The accounting treatment of interest on Calls-in-Advance is as follows


No Particulars LF Dr. Rs. Cr. Rs.
1 For Interest Due
Interest on Calls-in-AdvanceA/c Dr.
To Shareholders’A/c c
(Being interest on calls in advance made due)

2. For payment of interest


Shareholders’A/c Dr.
To Bank A/c
(Being interest paid on calls-in-advance)

11. FORFEITURE OF SHARES


Failure to pay call money results in forfeiture of shares. Forfeiture of shares is the action
taken by a company to cancel the shares on account of non-payment of a call or interest
thereon after serving him a prior notice as prescribed by the Articles.
Forfeiture of Shares Which Were Issued At Par
No Particulars LF Dr.Rs. Cr. Rs.
1 Share Capital Account Dr.
To Forfeited Shares A/c
To Share Allotment A/c

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.10

To Share First Call A/c


To Share Final Call A/c
Where all amounts due on allotment, first call and final call have been transferred to Calls-
in- Arrears Account, the entry will be:
No Particulars LF Dr.Rs. Cr. Rs.
1 Share Capital Account Dr.
To Calls-in-Arrear A/c
To Forfeited Shares A/c

Forfeiture of Shares Which Were Issued At A Premium


In this case, Share Capital Account will be debited with the called-up value of shares
forfeited. If the premium on such shares has not been paid by the shareholders, the
Securities Premium Account will be debited to cancel it. (if it was credited earlier).
Allotment, Calls and Forfeited Accounts will be credited in the usual manner. If the
premium has already received by the company, it cannot be cancelled even if the shares
are forfeited in the future.

Forfeiture of Fully Paid-Up Shares


Fully paid up shares may be forfeited for realisation of debts of the shareholder if the
Articles specifically provide it.

12. RE-ISSUE OF FORFEITED SHARES


A forfeited share is merely a share available to the company for sale and remains vested
in the company for that purpose only. Reissue of forfeited shares is not allotment of shares
but only a sale. Forfeited shares can be issued at any price so long as the total amount
received (from the original allotted and the second purchaser)
Reissue of forfeited shares is not allotment of shares but only a sale.
No Particulars LF Dr. Cr.
a) Bank A/c Dr.
Forfeited Shares A/c
To Share Capital A/c
(Being the re-issue of ………… Shares @ Rs…………
each as per Board's Resolution No…….Dated)
b) Forfeited Shares A/c Dr.
To Capital Reserve A/c

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.11

(Being the profit on re-issue, transferred to capital


reserve)

Calculation Of Profit On Re-issue Of Forfeited Shares


The credit balance of forfeited shares account cannot be considered a surplus until the
shares forfeited have been re-issued, because the company may, on re-issue allow the
discount to the new purchaser equivalent to the amount held in credit in this regard in the
forfeited shares account.

Points for Consideration:


In connection with re-issue the following points are important
1. Loss on re-issue should not exceed the forfeited amount
2. If the loss on re-issue is less than the amount forfeited, the surplus should be
transferred to Capital Reserve.
3. The forfeited amount on shares not yet reissued should be shown in the Balance Sheet
as an addition to the share capital
4. When only a portion of the forfeited shares are re-issued then the profit made on
reissue of such shares must be transferred to Capital Reserve.
5. When the shares are re-issued at a loss, such loss is to be debited to “Forfeited Shares
Account”
6. If the shares are re-issued at a price which is more than the face value of the shares,
the excess amount will be credited to Securities Premium Account.
7. If the re-issued amount and forfeited amount (taken together) exceeds the face value
of the shares re-issued, it is not necessary to transfer such amount to Securities
Premium Account.

13. ISSUE OF SHARES FOR CONSIDERATION OTHER THAN CASH


Sometimes a company may issue shares in a direct exchange for land, buildings or other
assets. Shares may also be issued in payment for services rendered by promoters, lawyers
in the formation of the company. In the Balance Sheet, these shares should be shown
separately.
No Particulars LF Dr. Rs. Cr.
Rs.
a) When assets are purchased in exchange of
shares
Assets A/c Dr.

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.12

To Share Capital A/c


b) When shares are issued to promoters
Goodwill A/c Dr.
To Share Capital A/c

14. ALTERATION OF SHARE CAPITAL BY SUB-DIVISION OR CONSOLIDATION OF SHARES


If authorised by its Articles a company may, in a general meeting, decide to sub divide or
consolidate the shares into those of a smaller or higher denomination than that fixed by
the Memorandum of Association.
Example: of Sub - Division2, 00,000 Equity Shares of Rs. 100 each be sub-divided into
20,00,000 Equity Shares of Rs. 10each
Accounting Entry:
No Particulars LF Dr. Rs. Cr. Rs.
Equity Share Capital A/c (Rs.100 each) Dr. 2,00,00,000
2,00,00,000
To Equity Share Capital A/c (Rs. 10 each)
Example of Consolidation 5,00,000 Equity shares of Rs. 10 each be consolidated into 50,000
Equity Shares of Rs. 100each
Accounting Entry:
No Particulars LF Dr. Rs. Cr. Rs.
Equity Share Capital A/c (Rs.10each) Dr. 50,00,000
To Equity ShareCapitalA/c(Rs. 100 50,00,000
each)

15. DEBENTURES
1. It is a document which evidence a loan made to a company.
2. It is a fixed interest bearing security where itself falls due on specific dates.
3. Interest is payable at a predetermined fixed rate, regardless of the level of profit.
4. The original sum is repaid at a specified future date or it is converted into shares or
other debentures.

* Discount on issue of Debenture A/c


A company issues debentures at a discount when the market rate of interest is higher
than the debenture interest. The difference between the nominal value of debentures
and cash received is transferred to “Discount on Issue of Debentures A/c”.

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.13

16. ISSUE OF DEBENTURES AS COLLATERAL SECURITY


Collateral security means secondary or supporting security for a loan, which can be realised
by the lender in the event of the original loan not being repaid on the due date.
When the loan is repaid on the due date, these debentures are at once released with the
main security. In case, the company cannot repay its loan and the interest thereon on the
due date, the lender becomes the debenture holder who can exercise all the rights of a
debenture holder. The holder of such debentures is entitled to interest only on the amount
of loan, but not on the debentures.
Accounting entries:
There are two methods of showing these types of debentures in the accounts of a company.
Method 1
No entry is made in the books of account of the company at the time of making issue of
such debentures. In the Balance Sheet the fact of the debentures being issued and
outstanding is shown by a note under the liability secured.
Method 2
Under this method, the following entry is made to record the issue of such debentures:
No Particulars LF Dr. Rs. Cr. Rs.
Debentures Suspense A/c Dr.
To % Debentures A/c
(Being the issue of ……..debentures collaterally ……as
per Board’s Resolution No………Dated)
When the loan is repaid, the entry is reversed in order to cancel it.

17. ISSUE OF DEBENTURES IN CONSIDERATION OTHER THAN FOR CASH


Debentures can also be issued for consideration other than for cash, such as for purchase
of land, machinery etc. In this case, the following entries are passed:
No Particulars LF Dr. Rs. Cr. Rs.
1 On purchase of business assets
Sundry Assets A/c (Assets taken over) Dr.
To Sundry Liabilities A/c (Liabilities assumed) To Vendors A/c
(Purchase Consideration)
(Being the assets and liabilities are taken over)
On issue of debentures
2 Vendors A/c Dr.
To % Debentures A/c
(Being the issue of ……debentures to satisfy
purchase consideration)
CLASS WORK

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.14

1. A Ltd. issued 3,50,000, 12% Debentures of `100 each at par payable in full on application by
1st April, Application were received for 3,85,000 Debentures. Debentures were allotted on 7th
April. Excess money refunded on the same date.
You are required to prepare necessary Journal Entries (including cash transactions) in the
books of the company. (RTP Nov 2018)
Solution
In the books of A Limited
Journal Entries
Date Particulars Dr. CR.
` '000 ` '000
April 1 Bank A/c Dr. 38,500
To 12% Debentures Application A/c 38,500
(Being money received on 3,85,000 debentures)
April 7 12% Debentures Application A/c Dr. 3,500
To Bank A/c 3,500
(Being money on 35,000 debentures refunded as per
Board’s Resolution No…..dated…)
April 7 12% Debentures Application A/c Dr. 35,000
To 12% Debentures A/c 35,000
(Being the allotment of 3,50,000 debentures of `
100 each at par, as per Board’s Resolution
No….dated…)

2. Riya Limited issued 20,000 14% Debentures of the nominal value of `1,00,00,000 as follows:
a) To sundry per sons for cash at 90% of nominal value of ` 50,00,000.
b) To a vendor for purchase of fixed assets worth ` 20,00,000 – ` 25,00,000 nominal value.
c) To the banker as collateral security for a loan of ` 20,00,000 – ` 25,00,000 nominal value.
You are required to prepare necessary journal entries Journal Entries. (RTP May 2018)
Solution

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.15

In the books of Riya Company Ltd.


Journal Entries
Sr.No Particulars Dr. Cr.
` `
(a) Bank A/c Dr. 45,00,000
To Debentures Application A/c 45,00,000
(Being the application money received on 10,000
debentures @ ` 450 each)
Debentures Application A/c Dr. 45,00,000
Discount on issue of Debentures A/c Dr. 5,00,000
To 14% Debentures A/c 50,00,000
(Being the issue of 10,000 14% Debentures @ 90% as
per Board’s Resolution No….dated….)
(b) Fixed Assets A/c Dr. 20,00,000
To Vendor A/c 20,00,000
(Being the purchase of fixed assets from vendor)
Vendor A/c Dr. 20,00,000
Discount on Issue of Debentures A/c Dr. 5,00,000
To 14% Debentures A/c 25,00,000
(Being the issue of debentures of `25,00,000
to vendor to satisfy his claim)
(c) Bank A/c Dr. 20,00,000
To Bank Loan A/c (See Note) 20,00,000
(Being a loan of ` 20,00,000 taken from bank by
issuing debentures of `25,00,000 as collateral security)

Note: No entry is made in the books of account of the company at the time of making issue
of such debentures. In the “Notes to Accounts” of Balance Sheet, the fact that the debentures
being issued as collateral security and outstanding are shown by a note under the liability
secured.

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.16

3. On 1st April, 2017, Pehal Ltd. issued 64,500 shares of ` 100 each payable as follows:
` 30 on application, ` 30 on allotment, ` 20 on 1st October, 2017; and ` 20 on 1st
February, 2018.
By 20th May, 60,000 shares were applied for and all applications were accepted. Allotment
was made on 1st June. All sums due on allotment were received on 15 th July; those on 1st call
were received on 20th October. You are required to prepare the Journal entries to record the
transactions when accounts were closed on 31st March, 2018. (RTP Nov 2018)
Solution
Book of Pehal Ltd.
Journal Entries
Date Particulars Dr. Cr.
2017 ` `
May 20 Bank Account Dr. 18,00,000
To Share Application A/c 18,00,000
(Application money on 60,000 shares at ` 30 per
share received.)
June 1 Share Application A/c Dr. 18,00,000
To Share Capital A/c 18,00,000
(The amount transferred to Capital Account on
60,000 shares ` 30 on application. Directors’
resolution no........ dated…. )
Share Allotment A/c Dr. 18,00,000
To Share Capital A/c 18,00,000
(Being share allotment made due at ` 30 per
share. Directors’ resolution no dated )
July 15 Bank Account Dr. 18,00,000
To Share Application and Allotment A/c 18,00,000
(The sums due on allotment received.)
Oct. 1 Share First Call Account Dr. 12,00,000
To Share Capital Account 12,00,000
(Amount due from members in respect of first
call-on 60,000 shares at ` 20 as per Directors,
resolution no... dated...)
Oct. 20 Bank Account Dr. 12,00,000
To Share First Call Account 12,00,000

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CA FOUNDATION MARATHON | COMPANY ACCOUNTS 12.17

(Receipt of the amounts due on first call.)


2018
Feb. 1 Share Second and Final Call A/c Dr. 12,00,000
To Share Capital A/c 12,00,000
(Amount due on 60,000 share at ` 20 per share
on second and final call, as per Directors
resolution no... dated...)
Mar. 31 Bank Account Dr. 12,00,000
To Share Second & Final Call A/c 12,00,000
(Amount received against the final call on
60,000 shares at `20 per share.)

CA Anand R Bhangariya 8600 320000 www.cavidya.com Swapnil Patni Classes

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