Q In 2016, Ganga Ltd was registered with an authorised capital of Rs 100,000 in equity shares - Accountancy - Accounting for Share Capital

Question

Q In 2016, Ganga Ltd was registered with an authorised capital of
Rs 100,000 in equity shares of Rs 10 each Of these 4,000 equity
shares were issued as fully paid to vendors for the purchase of
Plant and Machinery and the remaining 6,000 shares were subscribe
for by the public for cash During the first year, Rs 6 per equity
share was called up on these 6,000 shares , payable Rs 3 on
application , Rs 1 on allotment and Rs 2 on the first call
The amount received in respect of these shares were as follows
:
On 5,000 shares , the full amount called
on 600 shares , Rs 4 per shares
on 400 shares, Rs 3 per shares

The company forfeited all those shares on which only Rs 3 had been
received and reissued them at Rs 4 per shares , Rs 6 called up
Journalise the transaction in the books of the company and prepare
a Calls -in-arrears account

Nitin Verma · Accepted Answer

Dear Student,

Journal

Date
Particulars
L F
Debit
Amount
(Rs)
Credit
Amount
(Rs)

Machinery A/c

Dr
40,000

To Vendor

40,000

(Assets purchased)

Vendor
Dr

40,000

To Equity share Capital A/c

40,000

(Shares issued to vendor)

Bank A/c
Dr

18,000

To Equity share Application
A/c

18,000

( Being application money
received)

Equity share Application A/c
Dr

18,000

To Equity share Capital A/c

18,000

( Being Application money transferred to Equity
share capital A/c)

Equity share Allotment A/c
Dr

6,000

To Equity Share Capital A/c

6,000

( Being allotment money due)

Bank A/c
Dr

5,600

Calls-in-Arrears A/c
Dr

400

To Equity share Allotment
A/c

6,000

( Being Allotment received)

Equity Share First call A/c
Dr

12,000

To Equity share Capital A/c

12,000

( Being First call money due
)

Bank A/c
Dr

10,000

Calls-in-Arrears A/c
Dr

2,000

To Equity share first call
A/c

12,000

( Being First call Received)

Equity Share Capital A/c
Dr

2,400

To Calls-in-Arrears A/c

1,200

To forfeited share A/c

1,200

( Being share forfeited)

Bank A/c
Dr

1,600

Shares Forfeited A/c
Dr

800

To Equity share capital A/c

2,400

( Being forfeited shares
reissued)

Forfeited Equity Share A/c
Dr

400

To Capital Reserve A/c

400

(Being profit on reissue of 75 forfeited shares
transferred to Capital Reserve)

Calls-in-Arrears
Account

Dr

Cr

Date
Particulars
J F
Amount
(Rs)
Date
Particulars
J F
Amount
(Rs)

To Equity share Allotment
A/c

400

Equity Share Capital A/c

1,200

To Equity share Allotment
A/c

2,000

Balance c/d

1,200

2,400

Regards

Calls-in-Arrears Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)

	To Equity share Allotment A/c		400		Equity Share Capital A/c		1,200
	To Equity share Allotment A/c		2,000		Balance c/d		1,200

			2,400				2,400

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Machinery A/c		Dr.	40,000
	To Vendor				40,000
	(Assets purchased)

	Vendor	Dr.		40,000
	To Equity share Capital A/c				40,000
	(Shares issued to vendor)

	Bank A/c	Dr.		18,000
	To Equity share Application A/c				18,000
	( Being application money received)

	Equity share Application A/c	Dr.		18,000
	To Equity share Capital A/c				18,000
	( Being Application money transferred to Equity share capital A/c)


	Equity share Allotment A/c	Dr.		6,000
	To Equity Share Capital A/c				6,000
	( Being allotment money due)

	Bank A/c	Dr.		5,600
	Calls-in-Arrears A/c	Dr.		400
	To Equity share Allotment A/c				6,000
	( Being Allotment received)

	Equity Share First call A/c	Dr.		12,000
	To Equity share Capital A/c				12,000
	( Being First call money due )

	Bank A/c	Dr.		10,000
	Calls-in-Arrears A/c	Dr.		2,000
	To Equity share first call A/c				12,000
	( Being First call Received)

	Equity Share Capital A/c	Dr.		2,400
	To Calls-in-Arrears A/c				1,200
	To forfeited share A/c				1,200
	( Being share forfeited)

	Bank A/c	Dr.		1,600
	Shares Forfeited A/c	Dr.		800
	To Equity share capital A/c				2,400
	( Being forfeited shares reissued)

	Forfeited Equity Share A/c	Dr.		400
	To Capital Reserve A/c				400
	(Being profit on reissue of 75 forfeited shares transferred to Capital Reserve)