Explain what are Calls in Arrear and In Advance and How are they represented in the Balance sheet

by
See earlier article on the various stages of shares issued payable by installments  

Below are the double entry system for the various stages of shares issued payable by installments:-

Various stages or types of transactions Debit Credit
Application money received Bank account Application & Allotment account
Application money refunded Application & Allotment account Bank account
Allotment money received Bank account Application & Allotment account
Transfer from Application & Allotment account to Share Capital Ac count Application & Allotment account Ordinary Share Capital Account
First call made by directors First call account Ordinary Share Capital account
First call money received Bank account First Call account
Second call made by directors Second call account Ordinary Share Capital account
Second call money received Bank account Second Call Account

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.