Nikhil Vekariya (Article Assistant) (81 Points)
26 September 2012Dear Experts,
Company has issued the share Face Value Rs.10 each of which Rs.2 is received and the remaining Rs. 8 is yet to be received..
Company has made a call for Rs.3 as on 15/03/2012 which is not yet Paid.
What will be the Accounting Treatment and Journal Entry for this call which is not Yet Received or How it will be Disclosed in the Financial Statement......?
Your Support will be highly Appreciated.....
Thanks and Regards.....
Devendra
(Chartered Accountant)
(4775 Points)
Replied 26 September 2012
Following is the Journal Entry to be passed :-
Equity Share Capital A/c (8 x no. of shares) Dr. XXXXX
Bank A/c (2 x no. of shares) Dr. XXXXX
To Equity Share Capital A/c (10 x no. of share) XXXXX
(Being Shares issued, and Rs. 2 received as apllication money, but Rs. 8 yet to be received)
Regards,
Devendra Kulkarni
CA.Ankur Khandelwal
(Owner)
(281 Points)
Replied 26 September 2012
i want to know whether for Rs 8 co. make the call from the investor or not...
if yes then pass the entry
Share alotment Dt. 8
To Share Capital 8
CA.Ankur Khandelwal
(Owner)
(281 Points)
Replied 26 September 2012
Mr. Devendra wht the mean to Dr. share capital for Rs.8 as you are cr. the same again
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 26 September 2012
Following entries are to be made:
Bank A/c Dr. 2
To Share Application Money 2
(Being share application money received)
Share Application Money 2
To Share Capital Account 2
(After allotment being application money transferred to Capital account)
Share First Call Dr. 3
To share Capital Account 3
(being share first call money called up)
When amount will received following entry will be made:
Bank A/c Dr
Calls in arrear Dr.
To Share First Call
(Call money received on .... shares)
this will record all your transactions.... Hope the matter is clear now...
CA.Ankur Khandelwal
(Owner)
(281 Points)
Replied 26 September 2012
CS Ankur Sir, without passing a allotment entry how can one pass direct first call or else?
i mean to say without allotment how can you ask to share holder for first call
Smriti Dhawan
(Company Secretary )
(347 Points)
Replied 26 September 2012
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(1) On receipt of application money |
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Bank Account |
Dr |
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To Share Application A/c |
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(Being the application money on....shares.. @ Rs..per share)
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(2) On allotment of shares |
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(a) First of all application money on allotted shares is transferred to shares capital account by passing the following entry.
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Share Application Account |
Dr |
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To Share Capital A/C |
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(Being the application money transferred to Share Capital Account)
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(b) Those applicants who could not be allotted any share, their application money will be returned. For the following entry will be passed. |
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Share Application Account |
Dr |
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To Bank Account |
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(Being the application money of shares returned)
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(3) On the allotment of share, the allotment money becomes due to the company. For this, the company will pass the following entry
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Share Allotment Account |
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To Share Capital Account |
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Being the Share allotment money due on ....share @ Rs...per share as per resolution dated...)
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(4) On receipt of allotment money, the entry is
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Bank A/c |
Dr |
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To Share Allotment A/c |
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(Being the receipt of allotment money)
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(5) On making the first call due from shareholders the entry is
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Share First Call Account |
Dr |
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To Share Capital Account |
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(Being the first call money due on... shares @ Rs...per shares as per resolution of the Directors dated.....)
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(6) On receipt of the first call money, the entry is
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Bank Account |
Dr |
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To Share First Call Account |
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(Being share first call money...shares @ Rs....per share received) |
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 26 September 2012
Second entry was for allotment and transfer of application money to capital account.
Nikhil Vekariya
(Article Assistant)
(81 Points)
Replied 26 September 2012
And what is the Disclosure Requirnment ?
Share First Call Account Dr
To Share Capital Account
Where Share First Call A/c will be shown in the Balance Sheet as per Revised Schedule IV ?
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 26 September 2012
When amount is received, the share First call account will be closed as under
Bank A/c Dr
Calls in Arrear(if any) Dr.
To share first call A/c
In this way this account will be closed and calls in arrear will reduce the amount of captal called up.
Smriti Dhawan
(Company Secretary )
(347 Points)
Replied 26 September 2012
As per my opinion Company has made call on 15.03.2012, kindly check what is due date of receiving Call money from Shareholders. If it is up to 31st March 2012 then only the issue with regard to calls in arrear will arise otherwise, there is no requirement to disclose the amount called up per share on face of Balance Sheet , you can give it in the notes that Company has called Rs. 3 per Share in the Balance Sheet for the year ended 31st March 2012
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 26 September 2012
Dear Smriti ji,
In case the Company has called up the call money, the share capital shall increase upto that amount and calls in arrear has to show in the books of accounts or it may be shown payments yet to receive...However, in case the money is called up you must show on the face of Balance Sheet....
CAclubindia
