Multiple choice

Amit Ltd. issued 6,000 equity shares of Rs. 10 each, payable as Re. 1 on application, Rs. 3 on allotment, Rs. 2 on first call and the balance on final call. But Ajay, who holds 300 equity shares, did not pay first and final call amount on these shares and Vijay, who holds 100 shares did not pay final call amount. All other amounts were duly received. Which entry related to calls is wrongly recorded in the books of company?

  1. Equity Share First Call A/c 12,000 To Equity Share Capital A/c 12,000

  2. Bank A/c 11,400 To Equity Share First Call A/c 11,400

  3. Equity Share Final Call A/c 22,800 To Equity Share Capital A/c 22,800

  4. Bank A/c 22,400 To Equity Share Final Call A/c 22,400
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Final call money due on 6,000 equity shares @ Rs. 4 per share, i.e. 24,000 but here amount is wrongly calculated i.e. 6,000 - 300 = 5,700 x 4 = 22,800.

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