X, a shareholder holding 40 shares, was unable to pay ₹2 on first call, but paid the whole amount on second and final call which is ₹3. If the company opened calls in Arrear account what should be the journal entry for cash received on second and final call?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Bank A/c Dr. 200 To share second and final call A/c 120 To Calls in Arrear A/c 80
Arrears on first call = 40 × ₹2 = ₹80 (already debited to Calls in Arrear A/c)
Second and final call due = 40 × ₹3 = ₹120
Cash received = ₹120 + ₹80 = ₹200
Bank A/c Dr. ₹200; To Share Second and Final Call A/c ₹120; To Calls in Arrear A/c ₹80 (the arrears now received close the Calls in Arrear Account)
NCERT (2026-27 edition):
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