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 A/c 120
To Calls in Arrear A/c 80
Journal entry in case of non failure of first call-
Calls in arrear A/c Dr. ₹80 (40 x 2)
To Share First Call A/c ₹80 (40 x 2)
Journal entry for receiving of second call & calls in arrear-
Bank A/c Dr. ₹200 (40 x 5)
To Calls in arrear ₹80
To Share Second Call A/c ₹120 (40 x 3)