Page 30 - Ebook Financial Accounting 3

d) On receipt of call money

Item Dr Cr
Bank XXX

Calls XXX

(Amount received on calls)

e) On receipts of calls in advance money

Item Dr Cr
Bank XXX

Calls in advance XXX

(Amount receives as calls in advance)

f) On calls in arrears
Item Dr Cr

Calls in arrears XXX

Calls XXX
(Money not received as calls in arrears)

Example 2.3
All Is Well Bhd offered for sale to the public 40,000,000 ordinary shares at RM2 per share on

the following terms:

On application 80 cent

On allotment 40 cent
st
On 1 call 40 cent
nd
On 2 and final call 40 cent

Applications were received for 50,000,000 ordinary shares and the directors resolved that the
shares be allotted on a pro-rata basis of four shares for every five shares applied for. Any

surplus application monies were transferred to allotment account to reduce the money due on

allotment. All monies were duly collected when due except for shareholder with 4,000,000
shares who did not pay up on the first call but subsequently paid the amount due and the second

call money when the second call was made.

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