18 th solve this explain also
Q18. X company issued Rs. 10,00,000 shares for subscription of Rs.100 each at a premium of Rs.20 per share payable as:
Rs. 10 per share on application,
Rs. 40 per share and Rs.10 premium on allotment, and
Rs. 50 per share and Rs.10 premium on final payment.
Over-payments on application were to be applied towards amount due on allotment and over-payments on application exceeding amount due on allotment was to be returned. Issue was oversubscribed to the extent of 13,000 shares. Application for 12,000 share were allotted only 1,000 shares and applicants for 2,000 shares were sent letters of regret. All the money due on allotment and final call was duly received. Pass necessary entries in the company's books to record the above transaction. Also, prepare company's Balance Sheet on completion of the above transactions. [Ans : Balance Sheet Total – Rs. 12,00,000.]
Dear Student
This question is a normal question of Issue of shares, the only tricky part is to bifurcate the shares allotted and to adjust the advance money received on issue of shares. For Solving it we just prepare a table which depicts the individual categories if shares are allotted in a different manner to the people. As here out of 23,000 application for 12,000 applications only 1,000 shares are allotted and 1,000 applications rejected means the remaining 9,000 shares are allotted full this means that we have to calculate each amount separately as per the shares allotted given, Calculation per the table below:
Regards
This question is a normal question of Issue of shares, the only tricky part is to bifurcate the shares allotted and to adjust the advance money received on issue of shares. For Solving it we just prepare a table which depicts the individual categories if shares are allotted in a different manner to the people. As here out of 23,000 application for 12,000 applications only 1,000 shares are allotted and 1,000 applications rejected means the remaining 9,000 shares are allotted full this means that we have to calculate each amount separately as per the shares allotted given, Calculation per the table below:
| Step by step working as per instructions in question | ||||||
| Particulars | Category - A | Category - B | Category - C | Total | ||
| No. Of Applications applied | 12,000 | 2,000 | 9,000 | 23,000 | ||
| Application money received | 120,000 | 20,000 | - | 90,000 | 230,000 | |
| Applications allotted | 1,000 | - | 9,000 | 10,000 | ||
| Advance Application (Applied - Allotted) | 11,000 | 2,000 | - | - | 13,000 | |
| Advance money received | 110,000 | 20,000 | - | - | 130,000 | |
| Money Refunded before allotment | - | 20,000 | - | 20,000 | ||
| Advance application money to be adjusted against allotment money | 110,000 | - | - | - | 110,000 | |
| Allotment money due (Alloted applications x 50) | 50,000 | - | - | 450,000 | 500,000 | |
| Advance money adjusted | 50,000 | - | - | - | 50,000 | |
| Calls in Arrears | - | - | - | - | ||
| Cash received ( Allotment money - Advance Adjusted - Calls in Arrears) | - | - | 450,000 | 450,000 | ||
| Advance money left after adjustment of Allotment - refunded | 60,000 | - | - | - | 60,000 | |
| Call money Due on First and Final call | 60,000 | - | - | 540,000 | 600,000 | |
| Number of shares on which call money is in arrears | - | - | - | - | - | |
| Calls in arrears (Number x 60) | - | - | - | - | - | |
| Advance to be adjusted any | - | |||||
| Cash Received (Money due - Arrears - Any advance ) | 60,000 | - | - | 540,000 | 600,000 | |
| Journal in the books of X Company | ||||
| Date | Particulars | Debit | Credit | |
| Bank A/c (23000 x 10) | Dr. | 230,000 | ||
| To Share Application A/c | 230,000 | |||
| (Being Application money received on 23000 shares) | ||||
| Share Application A/c | Dr. | 230,000 | ||
| To Share Capital A/c (10000 x 10) | 100,000 | |||
| To Bank A/c (2000 x 10) | 20,000 | |||
| Calls in Advance A/c (11000 x 10) | 110,000 | |||
| (Being Out of 23000 shares 10000 allotted 2000 shares rejected and remaining money transferred to calls in advance A/c) | ||||
| Share Allotment A/c (10000 x 50) | Dr. | 500,000 | ||
| To Share Capital A/c (10000 x 40) | 400,000 | |||
| To Securities Premium A/c (10000 x 10) | 100,000 | |||
| (Being Allotment money due and premium to be received) | ||||
| Bank A/c (9,000 x 50) | Dr. | 450,000 | ||
| Call in Advance A/c (1,000 x 50) | Dr. | 50,000 | ||
| To Share Allotment A/c | 500,000 | |||
| (Being Allotment money received and adjusted against call in advance but allotment money on 0 shares pending) | ||||
| Calls in Advance A/c | Dr. | 60,000 | ||
| To Bank A/c | 60,000 | |||
| (Being Remaining advanced money refunded) | ||||
| Share First and Final Call A/c (10,000 x 60) | Dr. | 600,000 | ||
| To Share Capital A/c | 500,000 | |||
| To Securities Premium A/c (10,000 x 10) | 100,000 | |||
| (Call money due on 10,000 shares) | ||||
| Bank A/c (10,000 x 60) | Dr. | 600,000 | ||
| To Share First and Final A/c | 600,000 | |||
| (Received call money) | ||||
| X Company | ||
| BALANCE SHEET | ||
| Particulars | Note | March 31 |
| ` | ||
| EQUITY AND LIABILITIES | ||
| SHAREHOLDERS' FUNDS | ||
| Share Capital | 3 | 1,000,000 |
| Reserves and Surplus (Securities Premium)) | 200,000 | |
| SHARE APPLICATION MONEY PENDING ALLOTMENT | - | |
| NON-CURRENT LIABILITIES | ||
| Long-Term Borrowings | - | |
| Deferred Tax Liabilities (Net) | - | |
| CURRENT LIABILITIES | ||
| Trade Payables | - | |
| Other Current Liabilities | - | |
| Short-Term Provisions | - | |
| TOTAL | 1,200,000 | |
| ASSETS | ||
| NON-CURRENT ASSETS | ||
| Fixed Assets | - | |
| Tangible Assets | - | |
| Long term loans and advances | - | |
| Other non-current assets | - | |
| Deferred Tax Assets (Net) | - | |
| INVESTMENTS | ||
| CURRENT ASSETS | ||
| Inventories | - | |
| Cash and cash equivalents | 1,200,000 | |
| Short-term loans and advances | - | |
| Other Current Assets | - | |
| TOTAL | 1,200,000 | |
| Summary of Significant Accounting Policies | ||
| Notes form an integral part of the Financial Statement | ||
| Note - 3 Share Capital | ||
| Particulars | Amt | Amt |
| Authorised Capital | ||
| 10,000 Equity Shares of Rs. 100/- each. | 10,00,000 | |
| Issued Capital | ||
| 10,000 Equity Shares of Rs. 100/- each. | 10,00,000 | |
| Subscribed Capital | ||
| Subscribed and Fully Paid up | ||
| 10,000 Equity Shares of Rs. 100/- each | 1,000,000 | |
| Subscribed but not Fully Paid up | ||
| 0 Equity Shares of Rs. 100/- each | - | |
| Less : Calls in Arrears | - | - |
| Add: Share Forefiture A/c | - | |
| 1,000,000 |
Regards