NCERT Solutions for Class 12 Commerce Accountancy Chapter 8 Accounting For Share Capital are provided here with simple step-by-step explanations. These solutions for Accounting For Share Capital are extremely popular among class 12 Commerce students for Accountancy Accounting For Share Capital Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the NCERT Book of class 12 Commerce Accountancy Chapter 8 are provided here for you for free. You will also love the ad-free experience on Meritnation’s NCERT Solutions. All NCERT Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.
Page No 8.113:
Question 1:
Gopal Ltd. was registered with an authorised capital of â¹ 50,00,000 divided into Equity Shares of â¹ 100 each . The company offered for public subscription all the shares . Public applied for 45,000 shares and allotment was made to all the applicants. All the calls were made and were duly received except the final call of â¹ 20 per share on 500 shares.
Prepare the Balance Sheet of the company showing the different types of share capital.
Answer:
Gopal Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
44,99,000 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
44,99,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
44,99,000 |
Total |
|
44,99,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
5,00,000 equity shares of Rs 10 each |
50,00,000 |
|
|
Issued Share Capital |
|
|
|
5,00,000 equity shares of Rs 10 each |
50,00,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
4,50,000 equity shares of Rs 10 each |
45,00,000 |
|
|
Less: Calls in Arrears (500 shares × Rs 2) |
(1,000) |
44,99,000 |
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
44,99,000 |
|
|
|
|
Page No 8.114:
Question 2:
Himmat Ltd has authorised share capital of â¹ 50,00,000 divided into 5,00,000 Equity Shares of â¹ 10 each . It has existing issued and paid up capital of â¹ 5,00,000. It further issued to public 1,50,000 Equity Shares at par for subscription payable as under:
On Application: | â¹ 3 |
On Allotment: | â¹ 4 and |
On Call: | Balance Amount. |
The issue was fully subscribed and allotment was made to all the applicants . Call was made during the year and was duly received.
Show share capital of the company in the Balance Sheet of the Company.
Answer:
â
Balance Sheet of Himmat Ltd. |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
20,00,000 |
Total |
|
20,00,000 |
|
|
|
II. Assets |
|
|
2. Current Assets |
|
|
|
2 |
20,00,000 |
Total |
|
20,00,000 |
|
|
|
Notes to Accounts |
|
||
Particulars |
Amount (Rs) |
||
1. Share Capital |
|
||
Authorised Share Capital |
|
||
5,00,000 Equity Shares of Rs 10 each |
50,00,000 |
||
Issued Share Capital |
|
||
50,000 Equity Shares of Rs 10 each |
5,00,000 |
|
|
1,50,000 Equity Shares of Rs 10 each |
15,00,000 |
20,00,000 |
|
Subscribed and Paid-up Share Capital |
|
||
50,000 Equity Shares of Rs 10 each |
5,00,000 |
|
|
1,50,000 Equity Shares of Rs 10 each |
15,00,000 |
20,00,000 |
|
|
|
||
2. Cash and Cash Equivalents |
|
||
Bank |
20,00,000 |
||
|
|
Page No 8.114:
Question 3:
On Application: | â¹ 30 |
On Allotment: | â¹ 60 and |
On Call: | Balance Amount. |
The issue was fully subscribed and allotment was made to all the applicants . The company did not make the call during the year.
Show share capital of the company in the Balance Sheet of the Company.
Answer:
Balance Sheet of Lennova Ltd. |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
42,50,000 |
b. Reserves and Surplus |
2 |
5,00,000 |
Total |
|
47,50,000 |
|
|
|
II Assets |
|
|
2. Current Assets |
|
|
|
3 |
47,50,000 |
Total |
|
47,50,000 |
|
|
|
Notes to Accounts |
||
Particulars |
Amount (Rs) |
|
1. Share Capital |
|
|
Authorised Share Capital |
|
|
1,00,000 Equity Shares of Rs 100 each |
1,00,00,000 |
|
Issued Share Capital |
|
|
25,000 Equity Shares of Rs 100 each |
25,00,000 |
|
25,000 Equity Shares of Rs 100 each |
25,00,000 |
50,00,000 |
Subscribed Share Capital |
|
|
Subscribed and Fully paid-up |
|
|
25,000 Equity Shares of Rs 100 each |
25,00,000 |
|
Subscribed but not fully paid-up |
|
|
25,000 Equity Shares of Rs 100 each, 70 called-up |
17,50,000 |
|
|
|
|
2. Reserves and Surplus |
|
|
Securities Premium Reserve |
5,00,000 |
|
|
|
|
3. Cash and Cash Equivalents |
|
|
Bank |
47,50,000 |
|
|
|
Page No 8.114:
Question 4:
Star Ltd. is registered with capital of â¹ 50,00,000 divided into 50,000 equity shares of â¹ 100 each, The Company issued 25,000 equity shares for subscription. Subscription was received for 23,750 shares and all the due amount was duly received, except the first and final call of â¹ 20 per share on 600 shares. Show the 'Share Capital' in the Balance Sheet of the company.
Answer:
In the books of Star Ltd. An Extract of Balance Sheet As at ………. |
||
Particulars |
Note No. |
Amount |
I. Equity And Liabilities Shareholders’ Funds |
|
|
Share Capital |
1 |
23,63,000 |
|
|
Notes to Accounts: | |||
Note No. |
Particulars |
|
Amount |
1. | Share Capital |
|
|
Authorised Capital |
|
|
|
50,000 equity shares of â¹100 each |
|
50,00,000 |
|
|
|
||
Issued Capital |
|
|
|
25,000 shares of â¹100 each |
|
25,00,000 |
|
|
|
||
Subscribed Capital |
|
|
|
23,750 shares of â¹100 each |
23,75,000 |
|
|
Less: Calls-in-Arrears (600 × 20) |
12,000 |
23,63,000 |
|
|
23,63,000 |
||
|
Page No 8.114:
Question 5:
Moneyplus company issued 2,50,000 Equity Shares of â¹ 10 each to public. All amounts have been received in lump sum. Pass necessary Journal entries in the books of the company.
Answer:
Authorised Capital 2,50,000 equity shares of Rs 10 each
Issued and Subscribed Capital 2,50,000 shares
In the books of Moneyplus |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
25,00,000 |
|
|
To Equity Share Application A/c |
|
|
25,00,000 |
|
|
(Share application money received for 2,50,000 equity shares of Rs 10 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
25,00,000 |
|
|
To Equity Share Capital A/c |
|
|
25,00,000 |
|
|
(Share application of 2,50,000 equity shares of Rs 10 each transferred to Equity Share Capital Account ) |
|
|
|
|
|
|
|
|
|
Page No 8.114:
Question 6:
The authorised capital of â¹ 16,00,000 of Bharat Ltd. is divide into 1,60,000 Equity Shares of â¹ 10 each. Out of these shares, 80,000 Equity Shares were issued at par to public for subscription. The full nominal value is payable on application. All the shares were subscribed by the public and total amount was paid for. Pass necessary journal entries in the books of the company.
Answer:
Authorised Capital 1,60,000 equity shares of â¹ 10 each
Issued and Subscribed Capital 80,000 equity shares
Books of Bharat Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
8,00,000 |
|
|
To Equity Share Application A/c |
|
|
8,00,000 |
|
|
(Share application money received for 80,000 Equity Shares of â¹ 10 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
8,00,000 |
|
|
To Equity Share Capital A/c |
|
|
8,00,000 |
|
|
(Share application of 80,000 shares of â¹ 10 each transferred to Equity Share Capital Accounts) |
|
|
|
|
|
|
|
|
|
Page No 8.114:
Question 7:
Hema Ltd. invited applications for 10,000 shares of â¹ 100 each payable as follows:
â¹ 20 on application, â¹ 30 on allotment, â¹ 20 on first call and the balance on final call.
All the shares were applied and allotted. All the money was duly received.
You are required to Journalise these transactions.
Answer:
Issued and Subscribed Capital 10,000 shares of â¹ 100 each
Payable as:
â¹ | 20 | on application |
â¹ | 30 | on allotment |
â¹ | 20 | on first call |
â¹ | 30 | on final call |
100 |
Books of Hema Limited Journal |
||||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
2,00,000 |
|
|
|
To Share Application A/c |
|
|
2,00,000 |
||
|
(Share application money received for 10,000 shares at â¹ 20 per share) |
|
|
|
||
|
|
|
|
|
||
|
Share Application A/c |
Dr. |
|
2,00,000 |
|
|
|
To Share Capital A/c |
|
|
2,00,000 |
||
|
(Share application of 10,000 shares of â¹ 20 each transferred to Share Capital) |
|
|
|
||
|
|
|
|
|
||
|
Share Allotment A/c |
Dr. |
|
3,00,000 |
|
|
|
To Share Capital A/c |
|
|
3,00,000 |
||
|
(Share allotment due on 10,000 shares at â¹ 30 per share) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
3,00,000 |
|
|
|
To Share Allotment A/c |
|
|
3,00000 |
||
|
(Share allotment money received for 10,000 Shares at â¹ 30 per share) |
|
|
|
||
|
|
|
|
|
||
|
Share First Call A/c |
Dr. |
|
2,00,000 |
|
|
|
To Share Capital A/c |
|
|
2,00,000 |
||
|
(Share first call due on 10,000 shares at â¹ 20 per share) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
2,00,000 |
|
|
|
To Share First call A/c |
|
|
2,00,000 |
||
|
(Share first call received on 10,000 shares at â¹ 20 per share) |
|
|
|
||
|
|
|
|
|
||
|
Share Final Call A/c |
Dr. |
|
3,00,000 |
|
|
|
To Share Capital A/c |
|
|
3,00,000 |
||
|
(Share Final call due on 10,000 shares at â¹30 per shares) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
3,00,000 |
|
|
|
To Share Final Call A/c |
|
|
3,00,000 |
||
|
(Share final call received on 10,000 shares at â¹ 30 per share) |
|
|
|
||
|
|
|
|
|
Page No 8.114:
Question 8:
Marigold Ltd . was registered with the authorized capital of â¹ 3,00,000 divided into 3,000 shares of â¹ 100 each, which were offered to the public . Amount payable as â¹ 30 per share on application , â¹ 40 per share on allotment and â¹ 30 per share on first and final call . These shares were fully subscribed and all money was dully received . Prepare journal and Cash Book.
Answer:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(â¹)
|
Credit
Amount
(â¹)
|
|
|
Share Application A/c |
Dr.
|
90,000
|
|
|
|
To Share Capital |
|
|
90,000
|
|
|
(Share application money transferred) |
|
|
|
|
|
|
|
|
||
|
Share Allotment A/c |
Dr.
|
1,20,000
|
|
|
|
To Share Capital A/c |
|
|
1,20,000
|
|
|
(Share allotment money transferred) |
|
|
|
|
|
|
|
|
||
|
Share First and Final Call A/c |
Dr.
|
90,000
|
|
|
|
To Share Capital A/c |
|
|
90,000
|
|
|
(Share first and final call money transferred) |
|
|
|
Cash Book
|
|||||
Dr. |
Cr.
|
||||
Particulars |
Amount (â¹) |
Particulars |
Amount (â¹) |
||
Share Application A/c |
90,000 |
Balance c/d |
3,00,000 |
||
Share Allotment A/c |
1,20,000
|
|
|||
Share First and Final Call A/c |
90,000
|
|
|||
3,00,000
|
3,00,000
|
||||
|
Page No 8.114:
Question 9:
Modern Marbles Ltd. was registered with an authorised capital of â¹10,00,000 divided into 7,500 Equity Shares of â¹ 100 each and, 2,500 Preference Shares of â¹100 each. 1,000 Equity Shares and 500; 9% Preference Shares were offered to public on the following terms – Equity Shares payable â¹10 on application, â¹40 on allotment and the balance in two calls of â¹ 25 each. Preference Shares are payable â¹ 25 on application, â¹ 25 on allotment and â¹50 on first and final call. All the shares were applied for and allotted . Amount due was duly received. Prepare Cash Book and pass necessary Journal entries to record the above issue of shares and show how the Share Capital will appear in the Balance Sheet.
Answer:
Authorised Capital:
Equity Shares 7,500 of â¹ 100 each.
9% Preference Shares 2,500 of â¹ 100 each.
Issued Capital:
Equity Shares 1,000 of â¹ 100 each.
Payable as
â¹ 10 on Application
â¹ 40 on Allotment
â¹ 25 on First Call
â¹ 25 on Final Call
Preference Shares 500 of â¹ 100 each.
Payable as
â¹ 25 on application
â¹ 25 on allotment
â¹ 50 on first and final call
Books of Modern Marbles Limited |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
L.F. |
Bank (â¹) |
Date |
Particulars |
L.F. |
Bank (â¹) |
|
|
|
|
|
|
|
|
|
Equity Share Application |
|
10,000 |
|
|
|
|
|
Preference Share Application |
|
12,500 |
|
|
|
|
|
Equity Share Allotment |
|
40,000 |
|
|
|
|
|
Preference Share Allotment |
|
12,500 |
|
|
|
|
|
Equity Share First Call |
|
25,000 |
|
|
|
|
|
Preference Share First and Final Call |
|
25,000 |
|
|
|
|
|
Equity Share Final Call |
|
25,000 |
|
Balance c/d |
|
1,50,000 |
|
|
|
|
|
|
|
|
|
|
|
1,50,000 |
|
|
|
1,50,000 |
|
|
|
|
|
|
|
|
Journal |
|||||
|
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
10,000 |
|
|
To Equity Share Capital A/c |
|
|
10,000 |
|
|
(Equity share application of 1,000 shares of â¹ 10 each transferred to Equity Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
Preference Share Application A/c |
Dr. |
|
12,500 |
|
|
To 9% Preference Share Capital A/c |
|
|
12,500 |
|
|
(Preference share applications of 500 shares â¹ 25 each transferred to 9% Preference Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
40,000 |
|
|
To Equity Share Capital A/c |
|
|
40,000 |
|
|
(Equity share allotment due on 1,000 shares at â¹ 40 each) |
|
|
|
|
|
|
|
|
|
|
|
Preference Share Allotment A/c |
Dr. |
|
12,500 |
|
|
To 9% Preference Share Capital A/c |
|
|
12,500 |
|
|
(Preference share allotment due on 500 shares at â¹ 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c |
Dr. |
|
25,000 |
|
|
To Equity Share Capital A/c |
|
|
25,000 |
|
|
(Equity share first call due on 1,000 shares at â¹ 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Preference Share First and Final Call A/c |
Dr. |
|
25,000 |
|
|
To 9% Preference Share Capital A/c |
|
|
25,000 |
|
|
(Preference share first and final call due on 500 shares at â¹ 50 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Final Call A/c |
Dr. |
|
25,000 |
|
|
To Equity Share Capital A/c |
|
|
25,000 |
|
|
(Equity share final call due on 1,000 shares at â¹ 25 each) |
|
|
|
|
|
|
|
|
|
|
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
1,50,000 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
1,50,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
1,50,000 |
Total |
|
1,50,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|||
1 |
Share Capital |
|
|||
|
Authorised Share Capital |
|
|||
|
75,000 Equity Shares of â¹ 100 each |
7,50,000 |
|||
|
25,000 9% Preference Shares of â¹ 100 each |
2,50,000 |
10,00,000 |
||
|
Issued Share Capital |
|
|||
|
1,000 Equity Shares of â¹ 100 each |
1,00,000 |
|||
|
500 9% Preference Shares of â¹ 100 each |
50,000 |
1,50,000 |
||
|
Subscribed, Called-up and Paid-up Share Capital |
|
|||
|
1,000 Equity Shares of â¹ 100 each |
1,00,000 |
|
||
|
500 9% Preference Shares of â¹ 100 each |
50,000 |
1,50,000 |
||
|
|
|
|||
2 |
Cash and Cash Equivalents |
|
|||
|
Cash at Bank |
1,50,000 |
|||
|
|
|
Page No 8.115:
Question 10:
Shiva Ltd . issued 1,00,000 Equity Shares of â¹ 10 each at a premium of â¹ 5 per share . The whole amount was payable on application. The issue was fully subscribed . Pass necessary Journal entries.
Answer:
Issued 1,00,000 equity shares of Rs 10 each at a premium of Rs 5
Applied 1,00,000 shares
Books of Shiva Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
15,00,000 |
|
|
To Equity Share Application and Allotment A/c |
|
|
15,00,000 |
|
|
(Share application and allotment money received for 1,00,000 Shares at Rs 15 each including Rs 5 premium) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application and Allotment A/c |
Dr. |
|
15,00,000 |
|
|
To Equity Share Capital A/c |
|
|
10,00,000 |
|
|
To Securities Premium A/c |
|
|
5,00,000 |
|
|
(Application and allotment money of 1,00,000 shares transferred to Equity Share Capital Account at Rs 10 each and Securities Premium at Rs 5 each) |
|
|
|
|
|
|
|
|
|
Page No 8.115:
Question 11:
Seema Ltd. offered for subscription 10,000 shares of â¹ 25 each, payable â¹ 5 per share on application, â¹ 10 per share on allotment (including â¹ 5 per share as premium), â¹ 5 per share as first call on the shares and the balance in two equal amounts at intervals of three months. All the shares were applied for and allotted. All the money was received except the second call and final call on 200 and 400 shares respectively. Pass the entries in the company's Journal, Cash Book and the ledger. Also show the company's Balance Sheet on completion of the above transactions.
Answer:
Issued 10,000 shares of â¹ 25 each at premium of â¹ 5
Applied 10,000 shares
Payable as:
Application |
â¹ |
5 |
|
Allotment |
â¹ |
10 |
(5 + 5) |
First Call |
â¹ |
5 |
|
Second Call |
â¹ |
5 |
|
Final Call |
â¹ |
5 |
|
|
â¹ |
30 |
(25 + 5) |
Books of Seema Limited |
||||||||
Dr. |
Cr. |
|||||||
Date |
Particulars |
L.F. |
Bank (â¹) |
Date |
Particulars |
L.F. |
Bank (â¹) |
|
|
|
|
|
|
|
|
|
|
|
Share Application |
|
50,000 |
|
|
|
|
|
|
Share Allotment |
|
1,00,000 |
|
|
|
|
|
|
Share First Call |
|
50,000 |
|
|
|
|
|
|
Share Second Call |
|
49,000 |
|
|
|
|
|
|
Share Final Call |
|
48,000 |
|
Balance c/d |
|
2,97,000 |
|
|
|
|
2,97,000 |
|
|
|
2,97,000 |
|
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
50,000 |
|
|
To Share Capital A/c |
|
|
50,000 |
|
|
(Application money of 10,000 shares of â¹ 5 each transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
1,00,000 |
|
|
To Share Capital A/c |
|
|
50,000 |
|
|
To Securities Premium A/c |
|
|
50,000 |
|
|
(Share allotment of 10,000 shares transferred to Share Capital at â¹ 5 each and Securities Premium at â¹ 5 each) |
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
50,000 |
|
|
To Share Capital A/c |
|
|
50,000 |
|
|
(First call due on 10,000 shares at â¹ 5 each) |
|
|
|
|
|
|
|
|
|
|
|
Share Second Call A/c |
Dr. |
|
50,000 |
|
|
To Share Capital A/c |
|
|
50,000 |
|
|
(Second call due on 10,000 shares at 5 each) |
|
|
|
|
|
|
|
|
|
|
|
Call-in-Arrears A/c |
Dr. |
|
1,000 |
|
|
To Share Second Call A/c |
|
|
1,000 |
|
|
(Second call outstanding on 200 shares at â¹ 5 each) |
|
|
|
|
|
|
|
|
|
|
|
Share Final Call A/c |
Dr. |
|
50,000 |
|
|
To Shares Capital A/c |
|
|
50,000 |
|
|
(Final call due on 50,000 shares of â¹ to 5 per shares) |
|
|
|
|
|
|
|
|
|
|
|
Calls-in-Arrears A/c |
Dr. |
|
2,000 |
|
|
To Shares Final Call A/c |
|
|
2,000 |
|
|
(Final call outstanding on 400 shares at â¹ 5 each) |
|
|
|
|
|
|
|
|
|
Share Application Account |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
L.F. |
Amount (â¹) |
Date |
Particulars |
L.F. |
Amount (â¹) |
|
|
|
|
|
|
|
|
|
Share Capital |
|
50,000 |
|
Bank |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
|
|
|
|
|
Share Allotment Account |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
L.F. |
Amount (â¹) |
Date |
Particulars |
L.F. |
Amount (â¹) |
|
|
|
|
|
|
|
|
|
Share Capital |
|
50,000 |
|
Bank |
|
1,00,000 |
|
Securities Premium |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,00,000 |
|
|
|
1,00,000 |
|
|
|
|
|
|
|
|
Share First Call Account |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
L.F. |
Amount (â¹) |
Date |
Particulars |
L.F. |
Amount (â¹) |
|
|
|
|
|
|
|
|
|
Share Capital |
|
50,000 |
|
Bank |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
|
|
|
|
|
Share Second Call Account |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
L.F. |
Amount (â¹) |
Date |
Particulars |
L.F. |
Amount (â¹) |
|
|
|
|
|
|
|
|
|
Share Capital |
|
50,000 |
|
Bank |
|
49,000 |
|
|
|
|
|
Calls-in-Arrears |
|
1,000 |
|
|
|
|
|
|
|
|
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
|
|
|
|
|
Share Final Call Account |
|||||||||
Dr. |
|
Cr. |
|||||||
Date |
Particulars |
L.F. |
Amount (â¹) |
Date |
Particulars |
L.F. |
Amount (â¹) |
||
|
|
|
|
|
|
|
|
||
|
Share Capital |
|
50,000 |
|
Bank |
|
48,000 |
||
|
|
|
|
|
Calls-in-Arrears |
|
2,000 |
||
|
|
|
|
|
|
|
|
||
|
|
|
50,000 |
|
|
|
50,000 |
||
|
|
|
|
|
|
|
|
||
Call-in-Arrears Account |
|||||||||
Dr. |
|
Cr. |
|||||||
Date |
Particulars |
L.F. |
Amount (â¹) |
Date |
Particulars |
L.F. |
Amount (â¹) |
||
|
|
|
|
|
|
|
|
||
|
Share Second Call |
|
1,000 |
|
|
|
|
||
|
Share Final Call |
|
2,000 |
|
|
|
|
||
|
|
|
|
|
Balance c/d |
|
3,000 |
||
|
|
|
3,000 |
|
|
|
3,000 |
||
|
|
|
|
|
|
|
|
||
Share Capital Account |
|||||||||
Dr. |
|
Cr. |
|||||||
Date |
Particulars |
L.F. |
Amount (â¹) |
Date |
Particulars |
L.F. |
Amount (â¹) |
||
|
|
|
|
|
|
|
|
||
|
|
|
|
|
Share Application |
|
50,000 |
||
|
|
|
|
|
Share Allotment |
|
50,000 |
||
|
|
|
|
|
Share First Call |
|
50,000 |
||
|
|
|
|
|
Share Second |
|
50,000 |
||
|
Balance c/d |
|
2,50,000 |
|
Share Final Call |
|
50,000 |
||
|
|
|
2,50,000 |
|
|
|
2,50,000 |
||
|
|
|
|
|
|
|
|
||
Securities Premium Account |
|||||||||
Dr. |
|
Cr. |
|||||||
Date |
Particulars |
L.F. |
Amount (â¹) |
Date |
Particulars |
L.F. |
Amount (â¹) |
||
|
|
|
|
|
|
|
|
||
|
Balance c/d |
|
50,000 |
|
Share Allotment |
|
50,000 |
||
|
|
|
|
|
|
|
|
||
|
|
|
50,000 |
|
|
|
50,000 |
||
|
|
|
|
|
|
|
|
||
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
|
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (â¹) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
2,47,000 |
b. Reserves and Surplus |
2 |
50,000 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
2,97,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
2,97,000 |
Total |
|
2,97,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (â¹) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
……. shares of â¹ 25 each |
… |
|
|
Issued Share Capital |
|
|
|
10,000 shares of â¹ 25 each |
2,50,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
10,000 shares of â¹ 25 each |
2,50,000 |
|
|
Less: Calls-in-Arrears |
(3,000) |
2,47,000 |
|
|
|
|
2 |
Reserves and Surplus |
|
|
Securities Premium |
50,000 |
||
|
|||
3 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
2,97,000 |
|
|
|
|
Page No 8.115:
Question 12:
Bharat Ltd. was incorporated with a capital of â¹ 2,00,000 divided into shares of â¹ 10 each. 2,000 shares were offered for subscription and out of these, 1,800 shares were applied for and allotted. â¹ 3 per share (including â¹ 1 premium) was payable on application, â¹ 4 per share (including â¹ 1 premium) on allotment, â¹ 2 per share on first call and â¹ 3 per share on final call. All the money was received. Give necessary Journal entries and show share capital in the Balance Sheet.
Answer:
Authorised Capital 20,000 shares of â¹ 10 each
Issued Capital 2,000 shares
Applied 1,800 shares
Payable as: |
|
|
|
Application |
â¹ |
3 |
(2+1) |
Allotment |
â¹ |
4 |
(3+1) |
First Call |
â¹ |
2 |
|
Final Call |
â¹ |
3 |
|
|
|
12 |
(10+2) |
Books of Bharat Limited Journal |
||||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
5,400 |
|
|
|
To Share Application A/c |
|
|
5,400 |
||
|
(Application money received for 1,800 shares at Rs 3 per shares) |
|
|
|
||
|
|
|
|
|
||
|
Share Application A/c |
Dr. |
|
5,400 |
|
|
|
To Share Capital A/c |
|
|
3,600 |
||
|
To Securities Premium A/c |
|
|
1,800 |
||
|
(Application money of 1,800 share transferred to Share Capital at Rs 2 per share and Securities Premium Re 1 per share) |
|
|
|
||
|
|
|
|
|
||
|
Share Allotment A/c |
Dr. |
|
7,200 |
|
|
|
To Share Capital A/c |
|
|
5,400 |
||
|
To Securities Premium A/c |
|
|
1,800 |
||
|
(Share allotment due on 1,800 shares at Rs 4 per share including Re 1 securities premium) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
7,200 |
|
|
|
To Share Allotment A/c |
|
|
7,200 |
||
|
(Share Allotment money received) |
|
|
|
||
|
|
|
|
|
||
|
Share First Call A/c |
Dr. |
|
3,600 |
|
|
|
To Share Capital A/c |
|
|
3,600 |
||
|
(Share first call due on 1,800 shares at Rs 2 per shares) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
3,600 |
|
|
|
To Share First Call A/c |
|
|
3,600 |
||
|
(Share first call money received) |
|
|
|
||
|
|
|
|
|
||
|
Share Final Call A/c |
Dr. |
|
5,400 |
|
|
|
To Share Capital A/c |
|
|
5,400 |
||
|
(Share final call due on 1,800 shares at Rs 3 per share) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
|
5,400 |
|
||
|
To Share Final Call A/c |
Dr. |
|
|
5,400 |
|
|
(Share final call money received) |
|
|
|
||
|
|
|
|
|
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
Bharat Limited |
||
An extract of Balance Sheet |
||
Particulars |
Note No. |
Amount (â¹) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
18,000 |
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (â¹) |
1 |
Share Capital |
|
|
Authorised Share Capital |
|
|
20,000 shares of Rs 10 each |
2,00,000 |
|
Issued Share Capital |
|
|
2,000 shares of Rs 10 each |
20,000 |
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
1,800 shares of Rs 10 each |
18,000 |
|
|
|
Page No 8.115:
Question 13:
Authorized capital of Suhani Ltd . is â¹ 45,00,000 divided into 30,000 shares of â¹ 150 each . Out of these company issued 15,000 shares of â¹ 150 each at a premium of â¹ 10 per share . the amount was payable as follows:
â¹ 50 per share on application , â¹ 40 per share on allotment (including premium ), â¹ 30 per share on firs t call and balance on final call . Public applied for 14,000 shares. All the money was duly received .
Prepare an extract of Balance Sheet of Suhani Ltd . as per Schedule III , Part I of the companies Act, 2013 disclosing the above information . Also prepare 'Notes to Accounts ' for the same.
Answer:
Suhani Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
21,00,000 |
b. Reserves and Surplus |
2 |
1,40,000 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
22,40,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
22,40,000 |
Total |
|
22,40,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
1 |
Share Capital |
|
|
Authorised Share Capital |
|
|
30,000 shares of Rs 150 each |
45,00,000 |
|
Issued Share Capital |
|
|
15,000 shares of Rs 150 each |
22,50,000 |
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
14,000 shares of Rs 150 each |
21,00,000 |
|
|
|
2 |
Reserves and Surplus |
|
|
Securities Premium |
1,40,000 |
|
|
|
3 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
22,40,000 |
|
|
|
Page No 8.115:
Question 14:
A company invited applications for 75,000 equity shares of â¹ 100 each. The application money received @ â¹ 30 per share was â¹ 27,00,000. Name the kind of subscription. List the three alternatives for allotting these shares.
Answer:
Total Money Received on Application = â¹ 27,00,000
Application money per share = â¹ 30
Share Applications invited by the company = 75,000
Since, Number of Shares applied for by the company exceeds the number of shares offered by the company by 15,000 shares (i.e. 90,000 – 75,000). Therefore, it is a case of oversubscription of shares.
The alternatives available with the company are as follows:
1. By rejecting the excess applications and allotting only 75,000 shares.
2. By making allotment to the 90,000 shares applicants on a proportionate or pro-rata basis.
3. By making allotment to some on pro-rata basis and rejecting some applicants. For e.g.: 85,000 share applicants are given 75,000 shares on pro-rata basis and the remaining 5,000 shares have been rejected.
Page No 8.115:
Question 15:
Sangam Ltd. invited applications for 10,000 Equity Shares of â¹ 100 each issued at par. The amount was payable on application. The issue was oversubscribed by 2,000 shares and allotment was made on pro rata basis. Pass necessary Journal entries.
Answer:
In the books of Sangam Ltd. Journal |
|||||
Date |
Particulars |
|
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
Bank A/c (12,000 × 100) |
Dr. |
12,00,000 |
|
||
To Share Application and Allotment A/c (12,000 × 100) |
|
|
12,00,000 |
||
(Being application money received on 12,000 equity shares) |
|
|
|
||
|
|
|
|||
Share Application and Allotment A/c |
Dr. |
12,00,000 |
|
||
To Share Capital A/c (10,000 × 100) |
|
|
10,00,000 |
||
To Bank A/c (2,000 × 100) |
|
|
2,00,000 |
||
(Being share application and allotment money adjusted for 10,000 |
|
|
|
||
shares and balance money refunded) |
|
|
|
Note: Since the entire amount is receivable on application so the excess money on 2,000 shares has been refunded and allotment is made on a pro-rata basis to 12,000 shareholders.
Page No 8.115:
Question 16:
Citizen Watches Ltd. invited applications for 50,000 shares of â¹ 10 each payable â¹ 3 on application , â¹ 4 on allotment and balance on first and final call . Applications were received for 60,000 shares . Applications were accepted for 50,000 shares and remaining applications were rejected . All calls were made and received except First and Final call on 500 shares .
Pass the journal entries in the books of Citizen Watches Ltd .
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Bank A/c (60,0003) |
Dr. |
|
1,80,000 |
|
|
To Share Application A/c |
|
|
|
1,80,000 |
|
(Received application money on 60,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
1,80,000 |
|
|
To Share Capital A/c (50,0003) |
|
|
|
1,50,000 |
|
To Bank A/c (10,0003) |
|
|
|
30,000 |
|
(Transfer of application money to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c (50,0004) |
Dr. |
|
2,00,000 |
|
|
To Share Capital A/c |
|
|
|
2,00,000 |
|
(Allotment due on 50,000 shares ) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,00,000 |
|
|
To Share Allotment A/c |
|
|
|
2,00,000 |
|
(Allotment received) |
|
|
|
|
|
|
|
|
|
|
|
Share First and Final Call A/c (50,0003) |
Dr. |
|
1,50,000 |
|
|
To Share Capital A/c |
|
|
|
1,50,000 |
|
(Call money due on 50,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (49,5003) |
Dr. |
|
1,48,500 |
|
|
To Share First and Final Call A/c |
|
|
|
1,48,500 |
|
(Received call money on 49,500 shares) |
|
|
|
|
|
|
|
|
|
Page No 8.115:
Question 17:
Arti Ltd. offered for subscription 20,000 shares of â¹ 10 each payable â¹ 3 on application, â¹ 5 on allotment and balance on first and final call. Applications were received for 30,000 shares. Letters of regret were issued to applicants for 5,000 shares and their application money was refunded. Application money for other 5,000 shares was applied towards the payment for allotment money. The balance of allotment money was also received in due time. Company didn't make first and final call.
You are to prepare the Journal, Cash Book, Ledger Accounts and show 'Share Capital' in the Balance Sheet of the company.
Answer:
Issued Capital |
20,000 shares at â¹ 10 each |
Applied |
30,000 shares |
Over-subscribed |
10,000 shares |
Applied |
Allotted |
Over-subscribed |
25,000 |
20,000 |
5,000 |
5,000 |
NIL |
5,000 |
30,000 |
20,000 |
10,000 |
|
|
|
Payable as:
â¹ |
3 |
on application |
â¹ |
5 |
on allotment |
|
8 |
Called-up |
Books of Arti Limited |
|||||||||
Dr. |
|
Cr. |
|||||||
Date |
Particulars |
L.F. |
Bank (â¹) |
Date |
Particulars |
L.F. |
Bank (â¹) |
||
|
|
|
|
|
|
|
|
||
|
Share Application |
|
|
|
Share Application |
|
|
||
|
(30,000 shares × Rs 3) |
|
90,000 |
|
(5,000 shares × Rs 3) |
|
15,000 |
||
|
Share Allotment |
|
85,000 |
|
|
|
|
||
|
|
|
|
|
Balance c/d |
|
1,60,000 |
||
|
|
|
1,75,000 |
|
|
|
1,75,000 |
||
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
75,000 |
|
|
To Share Capital A/c |
|
|
60,000 |
|
|
To Share Allotment A/c |
|
|
15,000 |
|
|
(Share application of 20,000 shares at Rs 3 each transferred to Share Capital Account and excess money Rs 15,000 transferred to allotment) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
1,00,000 |
|
|
To Share Capital A/c |
|
|
1,00,000 |
|
|
(Share allotment due on 20,000 shares at Rs 5 each) |
|
|
|
|
|
|
|
|
|
Arti Limited |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (â¹) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
1,60,000 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
1,60,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
1,60,000 |
Total |
|
1,60,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (â¹) |
1 |
Share Capital |
|
|
Authorised Share Capital |
|
|
…… shares of Rs 10 each |
– |
|
Issued Share Capital |
|
|
20,000 shares of Rs 10 each |
2,00,000 |
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
20,000 shares of Rs 10 each, on which Rs 8 called-up and paid-up |
1,60,000 |
|
|
|
2 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
1,60,000 |
|
|
|
Page No 8.115:
Question 18:
Eastern Company Limited , having an authorised capital of â¹ 10,00,000 divided into shares of â¹ 10 each , issued 50,000 shares at a premium of â¹ 3 per share payable as follows:
On Application | â¹ 3 per share; |
On Allotment (including premium) | â¹ 5 per share; |
On first call (due three months after allotment )and the balance as when required. | â¹ 3 per share; |
Applications were received for 60,000 shares and the directors allotted the shares as follows:
(i) Applicants for 40,000 shares received in full.
(ii) Applicants for 15,000 shares received an allotment of 8,000 shares.
(iii) Applicants for 5,000 shares received 2,000 shares on allotment , excess money being returned.
All amounts due on allotment were received.
The first call was made and the money was received except on 100 shares.
Give journal and cash book entries to record these transactions of the company . Also prepare the Balance Sheet of the company.
Answer:
Books of Eastern Company Limited |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
Share Application A/c |
Dr.
|
1,80,000
|
|||
To Share Capital A/c |
1,50,000
|
||||
To Share Allotment A/c |
30,000
|
||||
(Share Application money for 50,000 shares transferred To Share Capital Account and the excess money transferred To Share Allotment Account) | |||||
Share Allotment A/c |
Dr.
|
2,50,000
|
|||
To Share Capital A/c |
1,00,000
|
||||
To Share Premium A/c |
1,50,000
|
||||
(Allotment money due on 50,000 shares @ Rs 5 per share including Rs 3 security premium) | |||||
Share First Call A/c |
Dr.
|
1,50,000
|
|||
To Share Capital A/c |
1,50,000
|
||||
(First call due on 50,000 shares @ Rs 3 per share) |
Cash Book (Bank Column) |
|||||||
Dr. |
Cr. |
||||||
Date |
Particulars |
J.F. |
Amount (â¹) |
Date |
Particulars |
J.F. |
Amount (â¹) |
Share Application |
1,80,000 |
||||||
Share Allotment |
2,20,000 |
Balance c/d |
5,49,700 |
||||
Share First Call |
1,49,700 |
||||||
5,49,700 |
5,49,700 |
||||||
Eastern Company Limited |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (â¹) |
I. Equity and Liabilities | ||
1. Shareholders’ Funds
|
||
a. Share Capital
|
1 |
3,99,700 |
b. Reserves and Surplus
|
2
|
1,50,000
|
2. Non–Current Liabilities
|
||
3. Current Liabilities
|
||
Total |
5,49,700 |
|
II. Assets | ||
1. Non–Current Assets
|
||
2. Current Assets
|
||
a. Cash and Cash Equivalents
|
3 |
5,49,700 |
Total |
5,49,700 |
|
NOTES TO ACCOUNTS
Note No.
|
Particulars
|
Amount
(â¹)
|
|
1
|
Share Capital | ||
Authorised Share Capital | |||
1,00,000 shares of Rs 10 each |
10,00,000
|
||
Issued Share Capital | |||
50,000 shares of Rs 10 each |
5,00,000
|
||
Subscribed, Called up and Paid up Share Capital | |||
50,000 shares of Rs 10 each, Rs 8 called–up |
4,00,000
|
||
Less: Calls–in–Arrears |
(300)
|
3,99,700
|
|
2
|
Reserves and Surplus | ||
Securities Premium |
1,50,000
|
||
3
|
Cash and Cash Equivalents | ||
Cash at Bank |
5,49,700
|
Page No 8.116:
Question 19:
Varun Ltd. issued â¹ 10,00,000 shares of â¹ 100 each at a premium of â¹ 20 for subscription payable as:
â¹ 40 per share and â¹ 10 premium on allotment, and
â¹ 50 per share and â¹ 10 premium on final payment.
Pass necessary entries in the company's books to record the above transactions. Also, prepare company's Balance Sheet on completion of the above transactions.
Answer:
Amount payable as:
Application |
â¹ |
10 |
|
Allotment |
â¹ |
50 |
(40 + 10) |
First and Final Call |
â¹ |
60 |
(50 + 10) |
|
|
120 |
(100 + 20) |
Books of Varun Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,30,000 |
|
|
To Share Application A/c |
|
|
2,30,000 |
|
|
(Share application money received for 23,000 shares at Rs 10 each) |
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
2,30,000 |
|
|
To Share Capital A/c |
|
|
1,00,000 |
|
|
To Share Allotment A/c |
|
|
50,000 |
|
|
To Bank A/c |
|
|
80,000 |
|
|
(Share application of 10,000 shares transferred to Share Capital, Rs 50,000 adjusted on allotment and remaining amount returned) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
5,00,000 |
|
|
To Share Capital A/c |
|
|
4,00,000 |
|
|
To Securities Premium A/c |
|
|
1,00,000 |
|
|
(Share allotment due on 10,000 shares at Rs 50 each including Rs 10 premium) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
4,50,000 |
|
|
To Share Allotment A/c |
|
|
4,50,000 |
|
|
(Share allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Share First and Final Call A/c |
Dr. |
|
6,00,000 |
|
|
To Share Capital A/c |
|
|
5,00,000 |
|
|
To Securities Premium A/c |
|
|
1,00,000 |
|
|
(First and final call due on 10,000 shares at Rs 60 each including Rs 10 premium) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,00,000 |
|
|
To Share First and Final Call A/c |
|
|
6,00,000 |
|
|
(Share first and final call money received) |
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet
Varun Limited |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (â¹) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
10,00,000 |
b. Reserves and Surplus |
2 |
2,00,000 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
12,00,000 |
|
|
|
II. Assets |
|
|
1.Non-Current Assets |
|
|
2.Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
12,00,000 |
Total |
|
12,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (â¹) |
1 |
Share Capital |
|
|
Authorised Share Capital |
|
|
…… shares of Rs 100 each |
- |
|
Issued Share Capital |
|
|
10,000 shares of Rs 100 each |
10,00,000 |
|
Subscribed, Called up and Paid up Share Capital |
|
|
10,000 shares of Rs 100 each |
10,00,000 |
|
|
|
2 |
Reserves and Surplus |
|
Securities Premium |
2,00,000 |
|
|
||
3 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
12,00,000 |
|
|
|
Working Notes:
Applied Shares |
Issued Shares |
Money received on Application @ â¹ 10 each |
Money transferred to Share Capital @ â¹ 10 each |
Excess |
Allotment due @ â¹ 50 each |
Excess money adjusted on Allotment |
Excess money after Allotment |
12,000
|
1,000
|
1,20,000
|
10,000
|
1,10,000
|
50,000
|
50,000
|
60,000 (return) |
2,000 |
NIL |
20,000 |
– |
20,000 (return) |
|
|
|
9,000 |
9,000 |
90,000 |
90,000 |
– |
4,50,000 |
– |
– |
23,000 |
10,000 |
2,30,000 |
1,00,000 |
|
5,00,000 |
50,000 |
60,000 |
|
Share Allotment due (10,000 share × â¹ 50) |
5,00,000 |
Less: Excess application money adjusted on allotment |
50,000 |
Money received on Allotment |
4,50,000 |
Page No 8.116:
Question 20:
Sugandh Ltd. issued 60,000 shares of â¹ 10 each at a premium of â¹ 2 per share payable as â¹ 3 on application, â¹ 5(including premium) on allotment and the balance on first and final call. Applications were received for 92,000 shares. The Directors resolved to allot as:
(i) | Applicants of 40,000 shares | 30,000 shares, |
(ii) | Applicants of 50,000 shares | 30,000 shares, |
(iii) | Applicants of 2,000 shares | Nil. |
Mohan, who had applied for 800 shares in Category
(i) and Sohan, who was allotted 600 shares in Category
(ii) failed to pay the allotment money. Calculate amount received on allotment.
Answer:
Issued Shares |
60,000 |
Less: Applied Shares |
92,000 |
Over-subscribed Shares |
32,000 |
Payable as:
Rs |
3 |
on Application |
Rs |
5 |
on Allotment (Including Rs 2 premium) |
Rs |
4 |
on First and Final Call |
Rs |
12 |
(10 + 2) |
|
|
|
|
|
|
|
Applied |
Allotted |
Money Received on Application @ Rs 3 |
Money adjusted on Appliction @ Rs 3 |
Excess |
Allotment due @ Rs 5 |
Excess money adjusted on Allotment @ Rs 5 |
40,000 |
30,000 |
1,20,000 |
90,000 |
30,000 |
1,50,000 |
30,000 |
50,000 |
30,000 |
1,50,000 |
90,000 |
60,000 |
1,50,000 |
60,000 |
2,000 |
NIL |
6,000 |
– |
6,000 |
|
|
|
|
|
|
(Bank) |
|
|
92,000 |
60,000 |
2,76,000 |
1,80,000 |
|
3,00,000 |
90,000 |
|
Mohan
Money Received on Application 800×3 |
= |
2,400 |
Application money adjusted to Share Capital 600×3 |
= |
1,800 |
Execs Money on Application |
= |
600 |
|
|
|
Allotment due on 600 shares × Rs 5 |
= |
3,000 |
Less: Adjustment of excess money on application |
= |
600 |
Calls-in-Arrears by Mohan |
|
2,400 |
Sohan
Money received on Application 1,000×3 |
= |
3,000 |
Application money adjusted to Share Capital 600×3 |
= |
1,800 |
Excess money on application |
= |
1,200 |
|
|
|
Allotment due on 600 Shares × Rs 5 |
= |
3,000 |
Less: Adjustment of excess money on application |
= |
1,200 |
Calls-in-Arrears by Sohan |
= |
1,800 |
|
|
|
Allotment due on 60,000 shares × Rs 5 |
= |
3,00,000 |
Less: Excess Application money adjusted on Allotment |
= |
90,000 |
|
|
2,10,000 |
Less: Calls-in-Arrears by Mohan |
= |
2,400 |
Less: Calls-in-Arrears by Sohan |
= |
1,800 |
Money received on allotment |
= |
2,05,800 |
Page No 8.116:
Question 21:
Sony Media Ltd.issued 50,000 shares of â¹ 10 each payable â¹ 3 on application , â¹ 4 on allotment and balance on first and final call . Applications were received for 1,00,000 shares and allotment was made as follows :
(i) Applicants for 60,000 shares were allotted 30,000 shares,
(ii) Applicants for 40,000 shares were allotted 20,000 shares,
Anupam to whom 1,000 shares were allotted from category
(i) failed to pay the allotment money.
Pass journal entries up to allotment .
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (â¹) | Credit Amount (â¹) | |
Bank A/c (1,00,000 × 3) | Dr. | 3,00,000 | |||
To Share Application A/c | 3,00,000 | ||||
(Received application money on 1,00,000 shares) | |||||
Share Application A/c | Dr. | 3,00,000 | |||
To Share Capital A/c (50,000 × 3) | 1,50,000 | ||||
To Share Allotment A/c | 1,50,000 | ||||
(Transfer of application money to Share Capital) | |||||
Share Allotment A/c (50,000 × 4) | Dr. | 2,00,000 | |||
To Share Capital A/c | 2,00,000 | ||||
Allotment due on 50,000 shares) | |||||
Bank A/c (W.N. 1) | Dr. | 49,000 | |||
To Share Allotment A/c | 49,000 | ||||
(Allotment money received after adjustment of excess on application and arrears) | |||||
Working Notes:
1) Computation of amount received on allotment:
Allotment due (50,000 × 4) | = | Rs. 2,00,000 |
Less: Amount received on application in excess (on 50,000 shares @ Rs . 3 each) | = | Rs. 1,50,000 |
Rs. 50,000 | ||
Less: Amount due but not received on shares of Anupam | 1,000 | |
Rs. 49,000 |
2) Calculation of Amount not Received on the shares of Anupam
Amount due on allotment of Anupam's Share (4 × 1,000) | = | 4,000 |
Less: Excess received on application (3 × 2,000 – 3 × 1,000) | = | 3,000 |
1,000 |
Page No 8.116:
Question 22:
The Kalyan Cotton Mills Ltd.was registered on 1st January,2011 with a capital of â¹10,00,000 divided into 1,00,000 shares of â¹ 10 each . The company issued 42,000 shares of which 40,000 shares were taken up by the public and â¹ 1 per share was received with application. On 1st February , these shares were allotted and â¹ 2 per share was duly received on 28th February as allotment money. A first call of â¹ 3 per share was made on 1st March and the call money on all shares with the exception of 100 shares was received . The final call of â¹ 4 per share was made on 1st June and the amount due, with the exception of 400 shares , was received by 30th June. Pass necessary journal ands Cash Book entries and prepare the Balance Sheet as at 30th June, 2011.
Answer:
Authorised Capital 1,00,000 shares of Rs 10 each
Issued Capital 42,000 shares of Rs 10 each
Applied 40,000 shares
Payable as:
Rs 1 on application
Rs 2 on allotment
Rs 3 on first call
Rs 4 on final call
Books of Kalyan Cotton Mills Ltd. Cash Book |
|||||||||
Dr. |
|
Cr. |
|||||||
Date |
Particulars |
L.F. |
Bank Rs |
Date |
Particulars |
L.F. |
Bank Rs |
||
2011 |
|
|
|
2011 |
|
|
|
||
Feb 01 |
Share Application |
|
40,000 |
|
|
|
|
||
Feb 28 |
Share Allotment |
|
80,000 |
|
|
|
|
||
May 01 |
Share First Call |
|
1,19,700 |
|
|
|
|
||
June 30 |
Share Final Call |
|
1,58,400 |
|
Balance c/d |
|
3,98,100 |
||
|
|
|
3,98,100 |
|
|
|
3,98,100 |
||
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2011 |
|
|
|
|
|
Feb 01 |
Share Application A/c |
Dr. |
|
40,000 |
|
|
To Share Capital A/c |
|
|
40,000 |
|
|
(Share application of 40,000 shares at Re 1 each transferred to Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
Feb 01 |
Share Allotment A/c |
Dr. |
|
80,000 |
|
|
To Share Capital A/c |
|
|
80,000 |
|
|
(Share allotment due on 40,000 shares at Rs 2 each) |
|
|
|
|
|
|
|
|
|
|
Mar 01 |
Share First Call A/c |
Dr. |
|
1,20,000 |
|
|
To Share Capital A/c |
|
|
1,20,000 |
|
|
(Share first call due on 40,000 shares at Rs 3 each) |
|
|
|
|
|
|
|
|
|
|
May 30 |
Calls-in-Arrears A/c |
Dr. |
|
300 |
|
|
To Share First Call A/c |
|
|
300 |
|
|
(Share first call outstanding on 100 shares at Rs 3 each) |
|
|
|
|
|
|
|
|
|
|
June 01 |
Share Final Call A/c |
Dr. |
|
1,60,000 |
|
|
To Share Capital A/c |
|
|
1,60,000 |
|
|
(Share final call due on 40,000 shares of Rs 4 each) |
|
|
|
|
|
|
|
|
|
|
June 30 |
Calls-in-Arrears A/c |
Dr. |
|
1,600 |
|
|
To Share Final Call A/c |
|
|
1,600 |
|
|
(Share final call outstanding on 400 shares at Rs 4 each) |
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
Kalyan Cotton Mills Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
3,98,100 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
3,98,100 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
3,98,100 |
Total |
|
3,98,100 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
1,00,000 shares of Rs 10 each |
10,00,000 |
|
|
Issued Share Capital |
|
|
|
42,000 shares of Rs 10 each |
4,20,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
40,000 shares of Rs 10 each |
4,00,000 |
|
|
Less: Calls-in-Arrears |
(1,900) |
3,98,100 |
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
3,98,100 |
|
|
|
|
Page No 8.117:
Question 23:
Ghosh Ltd. made the second and final call on its 50,000 Equity Shares @ â¹ 2 per share on 1st January, 2016. The entire amount was received on 15th January, 2016 except on 100 shares allotted to Venkat. Pass necessary journal entries for the call money due and received by opening Calls-in-Arrears Account.
Answer:
Books of Ghosh Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2016 |
|
|
|
|
|
Jan. 01 |
Share Second and Final Call A/c |
Dr. |
|
1,00,000 |
|
|
To Equity Share Capital A/c |
|
|
1,00,000 |
|
|
(Share second and final call due on 50,000 shares at Rs 2 per share) |
|
|
|
|
|
|
|
|
|
|
Jan. 15 |
Bank A/c |
Dr. |
|
99,800 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
200 |
|
|
To Share Second and Final Call A/c |
|
|
1,00,000 |
|
|
(Share second and final call received from 49,900 shares and 100 shares failed to pay the it) |
|
|
|
|
|
|
|
|
|
Page No 8.117:
Question 24:
Star Ltd was registered with a capital of â¹ 5,00,000 in shares of â¹ 10 each and issued 20,000 such shares at a premium of â¹ 2 per share, payable as â¹ 2 per share on application, â¹ 5 per share on allotment (including premium) and â¹ 2 per share on first call made three months later. All the money payable on application and allotment was duly received but when the first call was made, one shareholder paid the entire balance on his holding of 300 shares and another shareholder holding 1,000 shares failed to pay the first call money.
Pass journal entries to record the above transactions and show how they will appear in the company's Balance Sheet.
Answer:
Amount Payable on:
Application |
â¹ |
2 |
|
Allotment |
â¹ |
5 |
(3+2) |
First Call |
â¹ |
2 |
|
Called-up |
â¹ |
9 |
(7+2) |
Books of Star Ltd. Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
40,000 |
|
|
|
To Share Application A/c |
|
|
40,000 |
||
|
(Share application money received for 20,000 shares at Rs 2 per share) |
|
|
|
||
|
|
|
|
|
||
|
Share Application A/c |
Dr. |
|
40,000 |
|
|
|
To Share Capital A/c |
|
|
40,000 |
||
|
(Share application of 20,000 shares at Rs 2 per share transferred to Share Capital Account) |
|
|
|
||
|
|
|
|
|
||
|
Share Allotment A/c |
Dr. |
|
1,00,000 |
|
|
|
To Share Capital A/c |
|
|
60,000 |
||
|
To Securities Premium A/c |
|
|
40,000 |
||
|
(Share allotment due on 20,000 shares at Rs 5 per share including Rs 2 premium) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
1,00,000 |
|
|
|
To Share Allotment A/c |
|
|
1,00,000 |
||
|
(Share allotment received on 20,000 shares at Rs 5 per share) |
|
|
|
||
|
|
|
|
|
||
|
Share First Call A/c |
Dr. |
|
40,000 |
|
|
|
To Share Capital A/c |
|
|
40,000 |
||
|
(Share first call due on 20,000 shares at Rs 2 per shares) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
38,900 |
|
|
|
Calls-in-Arrears A/c |
Dr. |
|
2,000 |
|
|
|
To Share First Call A/c |
|
|
40,000 |
||
|
To Calls-in-Advance A/c |
|
|
900 |
||
|
(Share first call received on 39,000 shares at Rs 2 each, 300 shares paid calls-in-advance at Rs 3 per share and 1,000 shares failed to pay to first call money) |
|
|
|
||
|
|
|
|
|
||
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
Star Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (â¹) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
1,38,000 |
b. Reserves and Surplus |
2 |
40,000 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
a. Other Current Liabilities |
3 |
900 |
Total |
|
1,78,900 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
4 |
1,78,900 |
Total |
|
1,78,900 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (â¹) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
50,000 shares of Rs 10 each |
5,00,000 |
|
|
Issued Share Capital |
|
|
|
20,000 shares of Rs 10 each |
2,00,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
20,000 shares of Rs 10 each, Rs 7 Called-up and Paid-up |
1,40,000 |
|
|
Less: Calls-in-Arrears |
(2,000) |
1,38,000 |
|
|
|
|
2 |
Reserves and Surplus |
|
|
Securities Premium |
40,000 |
||
|
|||
3 |
Other Current Liabilities |
|
|
Calls-in-Advance |
900 |
||
|
|||
4 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
1,78,900 |
|
|
|
|
Page No 8.117:
Question 25:
Green Ltd. issued 8,000 Equity Shares of â¹ 10 each. â¹ 5 per share was called, payable â¹ 2 on application, â¹ 1 on allotment , â¹ 1 on first call and â¹ 1 on second call. All the money was duly received with the following exceptions:
A who holds 250 shares paid nothing after application.
B who holds 500 shares paid nothing after allotment.
C who holds 1,250 shares paid nothing after first call.
Prepare Journal and the Balance Sheet.
Answer:
Issued Capital 5,000 Shares of â¹10 each â¹ 5 called up
Books of Green Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
16,000 |
|
|
To Share Application A/c |
|
|
16,000 |
|
|
(Share application money received for 8,000 shares at Rs2 each) |
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
16,000 |
|
|
To Share Capital A/c |
|
|
16,000 |
|
|
(Application money transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
8,000 |
|
|
To Share Capital A/c |
|
|
8,000 |
|
|
(Allotment due on 8,000 shares at Re 1 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
7,750 |
|
|
Call-in-Arrears A/c |
Dr. |
|
250 |
|
|
To Share Allotment A/c |
|
|
8,000 |
|
|
(Allotment money received on 7,750 shares and 250 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
8,000 |
|
|
To Share Capital A/c |
|
|
8,000 |
|
|
(First call due on 8,000 shares at Re 1 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
7,250 |
|
|
Calls in Arrears A/c |
Dr. |
|
750 |
|
|
To Share First Call A/c |
|
|
8,000 |
|
|
(Share first call money received on 7,250 shares and 750 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Share Second Call A/c |
Dr. |
|
8,000 |
|
|
To Share Capital A/c |
|
|
8,000 |
|
|
(Share second call due on 8,000 shares at Rs l each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,000 |
|
|
Call-in-Arrears A/c |
Dr. |
|
2,000 |
|
|
To Share Second Call A/c |
|
|
8,000 |
|
|
(Share second call money received on 6,000 shares and 2000 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
Green Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (â¹) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
37,000 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
37,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
37,000 |
Total |
|
37,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (â¹) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
……. shares of Rs 10 each |
- |
|
|
Issued Share Capital |
|
|
|
8,000 shares of Rs 10 each |
80,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
8,000 shares of Rs 10 each, Rs 5 Called-up and Paid-up |
40,000 |
|
|
Less: Calls-in-Arrears |
(3,000) |
37,000 |
|
|||
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
37,000 |
|
|
|
|
Page No 8.117:
Question 26:
Bharat Ltd made the first call of â¹ 2 per share on its 1,00,000 Equity Shares on 1st March , 2006. Ashok, a shareholder, holding 800 shares paid the second and final call amount along with the first call money. The second and final call amount was â¹ 3 per share. Pass necessary journal entries for recording the above using the Calls-in Advance Account.
Answer:
Books of Bharat Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2006 |
|
|
|
|
|
|
Equity Share First Call A/c |
Dr. |
|
2,00,000 |
|
|
To Equity Share Capital A/c |
|
|
2,00,000 |
|
|
(Shares first call due on 1,00,000 shares at Rs 2 per share) |
|
|
|
|
|
|
|
|
|
|
Mar 01 |
Bank A/c |
Dr. |
|
2,02,400 |
|
|
To Equity Share First Call A/c |
|
|
2,00,000 |
|
|
To Call-In-Advance A/c |
|
|
2,400 |
|
|
(Share first call received with call-in-advance of 800 shares at Rs 3 per share) |
|
|
|
|
|
|
|
|
|
Page No 8.117:
Question 27:
2,000 Equity Shares of â¹ 10 each were issued to Limited from whom assets of â¹ 25,000 were acquired .
Pass Journal entry.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Assets A/c |
Dr. |
|
25,000 |
|
|
To X Ltd. |
|
|
25,000 |
|
|
(Assets bought from X Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
X Ltd. |
Dr. |
|
25,000 |
|
|
To Share Capital A/c |
|
|
20,000 |
|
To Securities Premium A/c | 5,000 | ||||
|
(2,000 shares of Rs 10 each issued to X Ltd.) |
|
|
|
|
|
|
|
|
|
Page No 8.117:
Question 28:
'Amrit Dhara Ltd.' issued 800 Equity Shares of â¹ 100 each at a premium of 25% as fully paid-up in consideration of the purchase of plant and machinery of â¹ 1,00,000.
Pass entries in company's Journal.
Answer:
Books of Amrit Dhara Limited |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
Plant & Machinery A/c |
Dr. |
|
1,00,000 |
|
|
To Vendor A/c |
|
|
|
1,00,000 |
|
(Machinery purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
1,00,000 |
|
|
To Equity Share Capital A/c (800 100) |
|
|
|
80,000 |
|
To Securities Premium A/c (800 25) |
|
|
|
20,000 |
|
(Shares issued to vendor at a premium of â¹ 25 per share) |
|
|
|
|
|
|
|
|
|
Page No 8.117:
Question 29:
Rajan Ltd . purchased assets from Geeta & Co . for â¹ 5,00,000. A sum of â¹ 1,00,000 was paid by means of a bank draft and for the balance due Rajan Ltd. issued equity Shares of â¹ 10 each at a premium of 25%. journalise the above transactions in the books of the company.
Answer:
Books of Rajan Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Assets A/c |
Dr. |
|
5,00,000 |
|
|
To Geeta & Co. |
|
|
5,00,000 |
|
|
(Assets purchased from Geeta & Co.) |
|
|
|
|
|
|
|
|
|
|
|
Geeta & Co. |
Dr. |
|
1,00,000 |
|
|
To Bank A/c |
|
|
1,00,000 |
|
|
(Payment made to Geeta & Co.) |
|
|
|
|
|
|
|
|
|
|
|
Geeta & Co. |
Dr. |
|
4,00,000 |
|
|
To Equity Share Capital A/c |
|
|
3,20,000 |
|
|
To Securities Premium A/c |
|
|
80,000 |
|
|
(32,000 equity shares of Rs 10 issued at 25% premium) |
|
|
|
|
|
|
|
|
|
Working Note-
Page No 8.117:
Question 30:
Z Ltd . purchased furniture costing â¹ 2,20,000 from C.D Ltd. The payment was to be made by issue of 9% Preference Shares of â¹ 100 each ata premium of â¹ 10 per share . Pass necessary Journal entries in the books of Z Ltd.
Answer:
Books of Z Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Assets A/c |
Dr. |
|
2,20,000 |
|
|
To C.D Ltd. |
|
|
2,20,000 |
|
|
(Assets purchased from C.D Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
C.D Ltd. |
Dr. |
|
2,20,000 |
|
|
To 9% Preference Share Capital |
|
|
2,00,000 |
|
|
To Securities Premium A/c |
|
|
20,000 |
|
|
(2,000 9% Preference Shares of Rs 100 each issued at 10% premium to C.D Ltd.) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 8.117:
Question 31:
Goodluck Ltd purchased machinery costing â¹ 10,00,000 from Fair Deals Ltd. The company paid the price by issue of Equity Shares of â¹ 10 each at a premium of 25%.
Pass necessary Journal entries for the above transactions in the books of Goodluck Ltd.
Answer:
Books Goodluck Ltd. Journal |
||||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
|
|
|
|
||
|
Machinery A/c |
Dr. |
|
10,00,000 |
|
|
|
To Fail Deals Ltd. |
|
|
10,00,000 |
||
|
(Machinery purchased from Fair Deals Ltd.) |
|
|
|
||
|
|
|
|
|
||
|
Fair Deals Ltd. |
Dr. |
|
10,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
8,00,000 |
||
|
To Securities Premium A/c |
|
|
2,00,000 |
||
|
(80,000 equity shares of Rs 10 each issued at 25% premium) |
|
|
|
||
|
|
|
|
|
Working Note:
Page No 8.118:
Question 32:
Jain Ltd purchased machinery costing â¹ 10,00,000 from Ayer Ltd. 50% of the payment was made by cheque and for the remaining 50% , the company issued Equity Shares of â¹ 100 each at a premium of 25% . Pass necessary Journal entries in the books of Jain Ltd . for the above transaction.
Answer:
Books of Jain Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Machinery A/c |
Dr. |
|
10,00,000 |
|
|
To Ayer Ltd. |
|
|
10,00,000 |
|
|
(Machinery purchased from Ayer Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
Ayer Ltd. |
Dr. |
|
5,00,000 |
|
|
To Bank A/c |
|
|
5,00,000 |
|
|
(Payment made to Ayer Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
Ayer Ltd. |
Dr. |
|
5,00,000 |
|
|
To Equity Share Capital A/c |
|
|
4,00,000 |
|
|
To Securities Premium A/c |
|
|
1,00,000 |
|
|
(4,000 equity shares of Rs 100 each issued at 25% premium) |
|
|
|
|
|
|
|
|
|
Working Note-
Page No 8.118:
Question 33:
Sona Ltd. purchased machinery costing â¹ 17,00,000 from Mona Ltd. Sona Ltd. paid 20% of the amount by cheque and for the balance amount issued Equity Shares of â¹ 100 each at a premium of 25% . Pass necessary Journal entries for the above transactions in the books of Sona Ltd .Show your working notes clearly.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
Machinery A/c |
Dr. |
|
17,00,000 |
|
|
To Mona Ltd. |
|
|
|
17,00,000 |
|
(Machinery purchased on credit from Sona Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
Mona Ltd. |
Dr. |
|
3,40,000 |
|
|
To Bank A/c |
|
|
|
3,40,000 |
|
(20% amount paid through cheque) |
|
|
|
|
|
|
|
|
|
|
|
Mona Ltd. (17,00,000 – 3,40,000) |
Dr. |
|
13,60,000 |
|
|
To Equity Share Capital* |
|
|
|
10,88,000 |
|
To Securities Premium A/c* |
|
|
|
2,72,000 |
|
(Issued 10,880 shares of Rs 100 each to Mona Ltd. at 25% Premium) |
|
|
|
|
|
|
|
|
|
|
Working Notes: *
Page No 8.118:
Question 34:
Light Lamps Ltd. issued 50,000 shares of â¹ 10 each as fully paid-up to the promoters for their services to set-up the company . It also issued 2,000 shares of â¹ 10 each credited as fully paid-up to the underwriters of shares for their services . journalise these transactions.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
Incorporation Expenses A/c |
Dr. |
|
5,00,000 |
|
|
To Share Capital A/c (50,00010) |
|
|
|
5,00,000 |
|
(Shares issued to promoters) |
|
|
|
|
|
|
|
|
|
|
|
Underwriting Commission A/c |
Dr. |
|
20,000 |
|
|
To Underwriters’ A/c |
|
|
|
20,000 |
|
(Underwriting commission due) |
|
|
|
|
|
|
|
|
|
|
|
Underwriters’ A/c |
Dr. |
|
20,000 |
|
|
To Share Capital A/c (2,00010) |
|
|
|
20,000 |
|
(Shares issued to underwriters) |
|
|
|
|
|
|
|
|
|
Page No 8.118:
Question 35:
Bharat Lamp Ltd. issued 30,000 fully paid-up shares of â¹ 100 each for purchase of the following assets and liabilities from Sharma & Co:
Plant | â¹ 7,00,000 | Stock-in-Trade | â¹ 9,00,000 |
Land and Building | â¹ 12,00,000 | Sundry Creditors | â¹ 2,00,000 |
You are required to pass necessary Journal entries.
Answer:
Books of Bharat Lamp Limited |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Goodwill A/c |
Dr. |
|
4,00,000 |
|
|
Plant A/c |
Dr. |
|
7,00,000 |
|
|
Stock-in-Trade A/c |
Dr. |
|
9,00,000 |
|
|
Land and Building |
Dr. |
|
12,00,000 |
|
|
To Sundry Creditors A/c |
|
|
2,00,000 |
|
|
To Sharma & Co |
|
|
30,00,000 |
|
|
(Asset purchased and liabilities accepted from Sharma & Co) |
|
|
|
|
|
|
|
|
|
|
|
Sharma & Co |
Dr. |
|
30,00,000 |
|
|
To Share Capital A/c |
|
|
30,00,000 |
|
|
(30,000 shares of Rs 100 each issued to Sharma & Co.) |
|
|
|
|
|
|
|
|
|
Page No 8.118:
Question 36:
Sure Ltd. purchased a running business from M/s. Rai Brothers for a sum of â¹ 15,00,000 payable â¹ 12,00,000 in fully paid shares of â¹ 10 each and balance through cheque.
The assets and liabilities consisted of the following:
Plant and Machinery | â¹ 4,00,000 | Stock | â¹ 4,00,000 |
Building | â¹ 4,00,000 | Cash | â¹ 3,00,000 |
Sundry Debtors | â¹ 3,00,000 | Sundry Creditors | â¹ 2,00,000 |
You are required to pass necessary Journal entries in the company's books.
Answer:
Books of Sure Ltd. |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Plant and Machinery |
Dr. |
|
4,00,000 |
|
|
Building A/c |
Dr. |
|
4,00,000 |
|
|
Sundry Debtors A/c |
Dr. |
|
3,00,000 |
|
|
Stock A/c |
Dr. |
|
4,00,000 |
|
|
Cash A/c |
Dr. |
|
3,00,000 |
|
|
To Sundry Creditors A/c |
|
|
2,00,000 |
|
|
To M/s Rai Brothers |
|
|
15,00,000 |
|
|
To Capital Reserve A/c |
|
|
1,00,000 |
|
|
(Business of M/s Rai Brothers took over) |
|
|
|
|
|
|
|
|
|
|
|
M/s Rai Brothers |
Dr. |
|
12,00,000 |
|
|
To Share Capital A/c |
|
|
12,00,000 |
|
|
(Shares issued to M/s Rai Brothers) |
|
|
|
|
|
|
|
|
|
|
|
M/S Rai Brothers |
Dr. |
|
3,00,000 |
|
|
To Bank A/c |
|
|
3,00,000 |
|
|
(Payment made to M/s Rai Brothers through cheque) |
|
|
|
|
|
|
|
|
|
Page No 8.118:
Question 37:
Sandesh Ltd. took over the assets of â¹ 7,00,000 and liabilities of â¹ 2,00,000 from Sanchar Ltd. for a purchase consideration of â¹ 4,59,500. â¹ 8,500 were paid by accepting a draft in favour of Sanchar Ltd. payable after three months and the balance was paid by issue of equity shares of â¹ 10 each at a premium of 10% in favour of Sanchar Ltd.
Pass necessary journal entries for the above transactions in the books of Sandesh Ltd.
Answer:
Sandesh Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
(i) |
Sundry Assets A/c |
Dr. |
|
7,00,000 |
|
|
To Sundry Liabilities A/c |
|
|
|
2,00,000 |
|
To Sanchar Ltd. |
|
|
|
4,59,500 |
|
To Capital Reserve A/c |
|
|
|
40,500 |
|
(Purchase of assets and liabilities of Sanchar Ltd.) |
|
|
|
|
|
|
|
|
|
|
(ii) |
Sanchar Ltd. |
Dr. |
|
4,59,500 |
|
|
To Equity Share Capital A/c |
|
|
|
4,10,000 |
|
To Securities Premium A/c |
|
|
|
41,000 |
|
To Bank A/c |
|
|
|
8,500 |
|
(41,000 Equity Shares issued of Rs 10 each at a premium of Re 1 per share and Rs 8,500 by bank draft) |
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of Number of Equity Shares
â
Page No 8.118:
Question 38:
Better Prospect Ltd. acquired land costing â¹ 1,00,000 and in payment allotted 1,000 Equity Shares of â¹ 100 each as fully paid. Further, the company issued 4,000 Equity Shares to public . The shares were payable as: â¹ 30 on application ; â¹ 30 on allotment; â¹ 40 on first and final call.
Applications were received for all shares which were allotted . All the money was received except the call on 200 shares.
Pass journal entries and prepare Balance Sheet of the company.
Answer:
Issued to public payable as:
Rs |
30 |
on application |
Rs |
30 |
on allotment |
Rs |
40 |
first and final call |
Rs |
100 |
Called-up |
Books of Better Prospect Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Land A/c |
Dr. |
|
1,00,000 |
|
|
To Vendor |
|
|
1,00,000 |
|
|
(Land purchased from the vendor) |
|
|
|
|
|
|
|
|
|
|
|
Vendor |
Dr. |
|
1,00,000 |
|
|
To Equity Share Capital A/c |
|
|
1,00,000 |
|
|
(1,000 equity of Rs 100 each issued to Vendor) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,20,000 |
|
|
To Equity Share Application A/c |
|
|
1,20,000 |
|
|
(Share Application money received for 4,000 equity shares at Rs 30 per share) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
|
1,20,000 |
|
|
|
To Equity Share Capital |
Dr. |
|
|
1,20,000 |
|
(Share Application money of 4,000 shares transferred to Equity Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
1,20,000 |
|
|
To Equity Share Capital A/c |
|
|
1,20,000 |
|
|
(Share allotment due on 4,000 equity shares of Rs 30 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,20,000 |
|
|
To Share Allotment A/c |
|
|
1,20,000 |
|
|
(Share allotment received for 4,000 shares at Rs 30 per share) |
|
|
|
|
|
|
|
|
|
|
|
Share First and Final Call A/c |
Dr. |
|
1,60,000 |
|
|
To Equity Share Capital A/c |
|
|
1,60,000 |
|
|
(First and final call due on 4,000 equity shares at 40 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,52,000 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
8,000 |
|
|
To Share First and Final Call A/c |
|
|
1,60,000 |
|
|
(First and final call received from 3,800 shares and 200 share failed to pay it) |
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
Better Prospect Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
4,92,000 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
4,92,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
a. Fixed Assets |
|
|
i. Tangible Assets |
2 |
1,00,000 |
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
3,92,000 |
Total |
|
4,92,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
…… shares of Rs 100 each |
- |
|
|
Issued Share Capital |
|
|
|
5,000 shares of Rs 100 each |
5,00,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
1,000 shares of Rs 100 each (for consideration other than cash) |
1,00,000 |
|
|
4,000 shares of Rs 100 each |
4,00,000 |
|
|
Less: Calls-in-Arrears |
(8,000) |
4,92,000 |
|
|
|
|
2 |
Tangible Assets |
|
|
Land |
1,00,000 |
||
|
|||
3 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
3,92,000 |
|
|
|
|
Page No 8.118:
Question 39:
Alankrit Ltd. purchased machinery of â¹ 10,00,000 from Grand Iron Works Ltd. and paid as follows:
(a) Issued 50,000 Equity Shares of â¹ 10 each at a premium of â¹ 2.
(b) Gave an acceptance of â¹ 3,00,000 payable after 3 months; and
(c) Balance by issuing post-dated cheque of two months of â¹ 1,00,000.
Pass the Journal entries in the books of Alankrit Ltd. and Grand Iron Works Ltd.
Answer:
In the books of Alankrit Ltd. Journal |
|||||
Date |
Particulars |
|
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
i) |
Machinery A/c |
Dr. |
10,00,000 |
|
|
|
To Grand Iron Works Ltd. |
|
|
10,00,000 |
|
|
(Being machinery purchased on from Grand Iron Works Ltd.) |
|
|
|
|
|
|
|
|
||
ii) |
Grand Iron Works Ltd. |
Dr. |
10,00,000 |
|
|
|
To Share Capital A/c (50,000 × 10) |
|
|
5,00,000 |
|
|
To Securities Premium Reserve A/c (50,000 × 2) |
|
|
1,00,000 |
|
|
To Bills Payable A/c |
|
|
3,00,000 |
|
|
To Bank A/c |
|
|
1,00,000 |
|
|
(Being shares issued, bill accepted and post-dated cheque issued) |
|
|
|
In the books of Grand Iron Works Ltd. Journal |
|||||
Date |
Particulars |
|
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
i) |
Alankrit Ltd. |
Dr. |
10,00,000 |
|
|
|
To Sales A/c |
|
|
10,00,000 |
|
|
(Being machinery sold to Alankrit Ltd.) |
|
|
|
|
|
|
|
|
||
ii) |
Investment A/c |
Dr. |
6,00,000 |
|
|
|
Bills Receivable A/c |
Dr. |
3,00,000 |
|
|
|
Cheques-in-Hand A/c |
Dr. |
1,00,000 |
|
|
|
To Alankrit Ltd. |
|
|
10,00,000 |
|
|
(Being shares, acceptance and post-dated cheque received as against machinery) |
|
|
|
|
|
|
|
|
Page No 8.119:
Question 40:
Alpha Ltd. issued 20,000 Equity Shares of â¹ 10 each at par payable: On application â¹ 2 per share; on allotment â¹ 3 per share; on first call â¹ 3 per share; on second and final call â¹ 2 per share.
Mr. Gupta was allotted 100 shares. Pass necessary Journal entry relating to the forfeiture of shares in each of the following alternative cases:
Case I | If Mr. Gupta failed to pay the allotment money and his shares were immediately forfeited. |
Case II | If Mr. Gupta failed to pay allotment money and on his subsequent failure to pay the first call, his shares were forfeited. |
Case III | If Mr. Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited. |
Answer:
Application |
â¹ |
2 |
Allotment |
â¹ |
3 |
First Call |
â¹ |
3 |
Final Call |
â¹ |
2 |
|
|
10 |
Books of Alpha Limited |
||||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
||
|
|
|
|
|
||
Case I |
Share Capital A/c (100×5) |
Dr. |
|
500 |
|
|
|
To Share Forfeiture A/c |
|
|
200 |
||
|
To Share Allotment A/c |
|
|
300 |
||
|
(100 shares of Rs 10 each, Rs 5 called-up, forfeited for the non-payment of allotment) |
|
|
|
||
|
|
|
|
|
||
Case II |
Share Capital A/c (100 × 8) |
Dr. |
|
800 |
|
|
|
To Share Forfeiture A/c |
|
|
200 |
||
|
To Share Allotment A/c |
|
|
300 |
||
To Share First Call A/c | 300 | |||||
|
(100 shares of Rs 10 each, Rs 8 called-up forfeited for non-payment allotment and first-call) |
|
|
|
||
|
|
|
|
|
||
Case III |
Share Capital A/c |
Dr. |
|
1,000 |
|
|
|
To Share Forfeiture A/c |
|
|
500 |
||
|
To Share First Call A/c |
|
|
300 |
||
To Share Final Call A/c | 200 | |||||
|
(100 shares of Rs 10 each forfeited for the non-payment Rs 5 each) |
|
|
|
||
|
|
|
|
|
Page No 8.119:
Question 41:
Ankit Ltd. issued 20,000 equity shares of 10 each at a premium of â¹ 2 per share, payable as:
On Application | : | â¹ 3 |
On Allotment | : | â¹ 5 (including premium) |
On First Call | : | â¹ 2 |
On Second and Final Call | : | â¹ 2 |
Vijay was allotted 500 shares. Pass the necessary Journal entries relating to the forfeiture of shares in following cases.
Case I | Vijay did not pay allotment money and his shares were immediately forfeited. |
Case II | Vijay did not pay allotment and first call, his shares were forfeited after first call. |
Case III | Vijay failed to pay first call and his shares were forfeited immediately. |
Case IV | Vijay failed to pay both the calls and his shares were forfeited. |
Answer:
Case I:
In the books of Ankit Ltd. Journal |
|||||
Date |
Particulars |
|
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
Share Capital A/c (500 × 6) |
Dr. |
3,000 |
|
|
|
Securities Premium Reserve A/c (500 × 2) |
Dr. |
1,000 |
|
|
|
To Share Forfeiture A/c (500 × 3) |
|
|
1,500 |
|
|
To Share Allotment A/c (500 × 5) |
|
|
2,500 |
|
|
(Being 500 shares forfeited for non-payment of allotment money) |
|
|
|
Case II:
In the books of Ankit Ltd. Journal |
|||||
Date |
Particulars |
|
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
Share Capital A/c (500 × 8) |
Dr. |
4,000 |
|
|
|
Securities Premium Reserve A/c (500 × 2) |
Dr. |
1,000 |
|
|
|
To Share Forfeiture A/c (500 × 3) |
|
|
1,500 |
|
|
To Share Allotment A/c (500 × 5) |
|
|
2,500 |
|
|
To Share First Call A/c (500 × 2) |
|
|
1,000 |
|
|
(Being 500 shares forfeited for non-payment of allotment and first call) |
|
|
|
Case III:
In the books of Ankit Ltd. Journal |
|||||
Date |
Particulars |
|
L.F. |
Debit Amount |
Credit Amount |
|
Share Capital A/c (500 × 8) |
Dr. |
4,000 |
|
|
|
To Share Forfeiture A/c (500 × 6) |
|
|
3,000 |
|
|
To Share First Call A/c (500 × 2) |
|
|
1,000 |
|
|
(Being 500 shares forfeited for non-payment of first call) |
|
|
|
Case IV:
In the books of Ankit Ltd. Journal |
|||||
Date |
Particulars |
|
L.F. |
Debit |
Credit |
|
Share Capital A/c (500 × 10) |
Dr. |
5,000 |
|
|
|
To Share Forfeiture A/c (500 × 6) |
|
|
3,000 |
|
|
To Share First Call A/c (500 × 2) |
|
|
1,000 |
|
|
To Share Second and Final Call (500 × 2) |
|
|
1,000 |
|
|
(Being 500 shares forfeited for non-payment of first and second call) |
|
|
|
Page No 8.119:
Question 42:
U.P. Sugar Works Ltd. was registered on 1st January, 2019 with an authorised capital of â¹ 15,00,000 divided into 15,000 shares of â¹ 100 each. The company issued on 1st April, 2019, 5,000 shares of â¹ 100 each at a premium of â¹ 5 per share payable â¹ 25 per share on application , â¹ 30 (including premium) on allotment and the balance in two equal installments of â¹ 25 each on 1st July and 1st October respectively. All the allotments and call moneys were paid when due, except in case of one shareholder who failed to pay the final call on 100 shares held by him. His shares were forfeited on 1st November after giving him a due notice. Show necessary entries in the books of the company to record these transactions.
Answer:
Authorised capital 15,000 shares of 100 each
Issued and applied capital 5,000 shares of â¹ 100 each at a premium â¹ 5
Application |
= |
â¹ 25 |
|
Allotment |
= |
â¹ 30 |
(25+5) |
First Call |
= |
â¹ 25 |
|
Final Call |
= |
â¹ 25 |
|
|
|
105 |
(100+5) |
Books of U.P. Sugar Works Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
2019 |
|
|
|
|
|
Apr. 01 |
Bank A/c |
Dr. |
|
1,25,000 |
|
|
To Share Application A/c |
|
|
1,25,000 |
|
|
(Share application money received for 5,000 shares at â¹ 25 each) |
|
|
|
|
|
|
|
|
|
|
Apr. 01 |
Share Application A/c |
Dr. |
|
1,25,000 |
|
|
To Share Capital A/c |
|
|
1,25,000 |
|
|
(Share application money transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
Apr. 01 |
Share Allotment A/c |
Dr. |
|
1,50,000 |
|
|
To Share Capital A/c |
|
|
1,25,000 |
|
|
To Securities Premium A/c |
|
|
25,000 |
|
|
(Share allotment due on 5,000 shares at â¹ 30 each including â¹ 5 premium) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,50,000 |
|
|
To Share Allotment |
|
|
1,50,000 |
|
|
(Share allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jul. 01 |
Share First Call A/c |
Dr. |
|
1,25,000 |
|
|
To Share Capital A/c |
|
|
1,25,000 |
|
|
(Share first call due on 5,000 shares at â¹ 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,25,000 |
|
|
To Share First Call A/c |
|
|
1,25,000 |
|
|
(Share first call money received) |
|
|
|
|
|
|
|
|
|
|
Oct 01 |
Share Final Call A/c |
Dr. |
|
1,25,000 |
|
|
To Share Capital A/c |
|
|
1,25,000 |
|
|
(Share final call due on 5,000 shares at â¹ 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,22,500 |
|
|
Calls-in-Arrear A/c |
Dr. |
|
2,500 |
|
|
To Share Final Call A/c |
|
|
1,25,000 |
|
|
(Share final call â¹ 25 each received for 4,900 shares and a holder of 100 share failed to pay it) |
|
|
|
|
|
|
|
|
|
|
Nov. 01 |
Share Capital A/c (100 × 100) |
Dr. |
|
10,000 |
|
|
To Share Forfeiture A/c (100 × 75) |
|
|
7,500 |
|
|
To Calls-in-Arrear A/c (100 × 25) |
|
|
2,500 |
|
|
(100 shares forfeited for the non-payment of final call) |
|
|
|
|
|
|
|
|
|
Page No 8.120:
Question 43:
Black Stone Ltd. issued 10,000 Equity Shares of â¹ 10 each at a premium of â¹ 3 per share payable â¹ 5 on application, â¹ 5 (including premium) on allotment and the balance on first call. All the shares offered were applied for and allotted. All the money due on allotment was received except on 200 shares. Call was made. All the amount due thereon was received except on 300 shares. Directors forfeited 200 shares on which both allotment and call money were not received.
Pass necessary Journal entries to record the above.Answer:
Issued and Applied 10,000 Shares at â¹ 10 each at a premium of â¹ 3 per share
Application |
â¹ |
5 |
|
Allotment |
â¹ |
5 |
(2+3) |
First and Final Call |
â¹ |
3 |
|
|
â¹ |
13 |
(10+3) Called-up |
In the Books of Black Stone Ltd. |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
50,000 |
|
|
To Equity Share Application A/c |
|
|
50,000 |
|
|
(Share application money received for 10,000 shares at Rs 5 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
50,000 |
|
|
To Equity Share capital A/c |
|
|
50,000 |
|
|
(Share application money transferred to Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
50,000 |
|
|
To Equity Share Capital A/c |
|
|
20,000 |
|
|
To Securities Premium |
|
|
30,000 |
|
|
(Share allotment due on 10,000 shares at Rs 5 per share including premium Rs 3) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
49,000 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
1,000 |
|
|
To Equity Share Allotment A/c |
|
|
50,000 |
|
|
(All allotment money received except 200 shares) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First and Final Call A/c |
Dr. |
|
30,000 |
|
|
To Equity Share Capital A/c |
|
|
30,000 |
|
|
(First and final due on 10,000 shares at Rs 3 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
29,100 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
900 |
|
|
To Equity Share First and Final Calls A/c |
|
|
30,000 |
|
|
(First and final call received on all shares except 300 shares) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
2,000 |
|
|
Securities Premium A/c |
Dr. |
|
600 |
|
|
To Share Forfeiture A/c |
|
|
1,000 |
|
|
To Calls-in-Arrears A/c |
|
|
1,600 |
|
|
(200 shares forfeited for the non-payment of Rs 8 per share including Rs 3 premium) |
|
|
|
|
|
|
|
|
|
Page No 8.120:
Question 44:
A company issued 10,000 shares of the value of â¹ 10 each , payable â¹ 3 on application, â¹ 3 on allotment and â¹ 4 on the first and final call . All amounts are duly received except the call money on 100 shares . These shares are subsequently forfeited by Directors and are resold as fully paid-up for â¹ 500 .
Give necessary journal entries for the transactions.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
30,000 |
|
|
To Share Application A/c |
|
|
30,000 |
|
|
(Share application money received for 10,000 shares at Rs 3 each) |
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
30,000 |
|
|
To Share Capital A/c |
|
|
30,000 |
|
|
(Share application money transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
30,000 |
|
|
To Share Capital A/c |
|
|
30,000 |
|
|
(Allotment due on 10,000 shares at Rs 3 per shares) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
30,000 |
|
|
To Share Allotment A/c |
|
|
30,000 |
|
|
(Share allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Share First and Final Call A/c |
Dr. |
|
40,000 |
|
|
To Share Capital A/c |
|
|
40,000 |
|
|
(First and final call due on 10,000 shares at Rs 4 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
39,600 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
400 |
|
|
To Share First and Final Call |
|
|
40,000 |
|
|
(First and final call of Rs 4 per share received on 9,900 shares, and 100 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
1,000 |
|
|
To Share Forfeiture A/c |
|
|
600 |
|
|
To Calls-in-Arrears A/c |
|
|
400 |
|
|
(100 shares of Rs 10 each forfeited for the non-payment of first and final call Rs 4 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
500 |
|
|
Share Forfeiture A/c |
Dr. |
|
500 |
|
|
To Share Capital A/c |
|
|
1,000 |
|
|
(100 shares of Rs 10 each re-issued for the sum of Rs 500) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
100 |
|
|
To Capital Reserve A/c |
|
|
100 |
|
|
(Balance in Share Forfeiture Account after re-issue of shares, transferred to Capital Reserve Account) |
|
|
|
|
|
|
|
|
|
Working Note
Page No 8.120:
Question 45:
X Ltd. forfeited 900 Equity Shares of â¹ 100 each for the non-payment of allotment money of â¹ 30 per share and the first call of â¹ 20 per share. The second and final call of â¹ 25 per share has not been made . The forfeited shares were reissued for â¹ 90 per share , â¹ 75 paid-up. Journalise the above.
Answer:
Application |
25 |
Balancing Figure |
Allotment |
30 |
|
First Call |
20 |
|
Final Call |
25 |
Un-called |
|
100 |
|
Called-up Rs 75 per share
Books of X Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Equity Share Capital A/c (900×75) |
Dr. |
|
67,500 |
|
|
To Share Forfeiture A/c |
|
|
22,500 |
|
|
To Calls-in-Arrears A/c |
|
|
45,000 |
|
|
(900 shares of Rs 100 each Rs 75 called-up, forfeited for the non-payment sum of allotment Rs 30 and first call Rs 20 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
81,000 |
|
|
To Share Capital A/c |
|
|
67,500 |
|
|
To Securities Premium A/c |
|
|
13,500 |
|
|
(900 shares of Rs 100 each re-issued as Rs 75 paid-up for Rs 90 each) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
22,500 |
|
|
To Capital Reserve A/c |
|
|
22,500 |
|
|
(Balance of Share Forfeiture Account after re-issue, transferred to Capital Reserve Account) |
|
|
|
|
|
|
|
|
|
Working Notes-
Page No 8.120:
Question 46:
The Directors of M Ltd resolved on 1st May, 2015 that 2,000 Equity Shares of â¹ 10 each , â¹ 7.50 paid be forfeited for non-payment of final call of â¹ 2.50 . On 10th June, 2015, 1,800 of these shares were reissued for â¹ 6 per share . Give necessary Journal entries .
Answer:
Books of M Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2012 |
|
|
|
|
|
May 01 |
Equity Share Capital A/c |
Dr. |
|
20,000 |
|
|
To Share Forfeiture A/c |
|
|
15,000 |
|
|
To Call-in-Arrears A/c |
|
|
5,000 |
|
|
(2,000 shares of Rs 10 each forfeited for non-payment of final call Rs 2.5 per share) |
|
|
|
|
|
|
|
|
|
|
June 10 |
Bank A/c |
Dr. |
|
10,800 |
|
|
Share Forfeiture A/c |
Dr. |
|
7,200 |
|
|
To Share Capital A/c |
|
|
18,000 |
|
|
(1,800 shares of Rs 10 each re-issued at Rs 6 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
6,300 |
|
|
To Capital Reserve A/c |
|
|
6,300 |
|
|
(Balance in Shares Forfeiture Account of 1,800 re-issue, transferred to Capital Reserve Account) |
|
|
|
|
|
|
|
|
|
Working Notes:
Share Forfeiture |
7.5 |
Cr. |
Share Forfeiture |
4 |
Dr. |
Balance in Share Forfeiture Account after re-issue |
3.5 |
Cr. per share |
Capital Reserve = No. of Shares reissued × Balance in Share Forfeiture Account after reissue (per share)
= 1,800 × Rs 3.5 (per share)
= Rs 6,300
Page No 8.120:
Question 47:
Super Star Ltd. makes an issue of 10,000 Equity Shares of â¹ 100 each, payable as:
On application and allotment | â¹ 50 per share, |
On first call | â¹ 25 per share, |
On second and final call | â¹ 25 per share. |
Members holding 400 shares did not pay the second and final call and the shares are duly forfeited, 200 of which are reissued as fully paid-up @â¹ 50 per share. Pass journal entries in the books of the company.
Answer:
Book of Super Star Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
To Equity Share Application and Allotment A/c |
|
|
5,00,000 |
|
|
(Share Application and Allotment money received for 10,000 shares at Rs 50 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application and Allotment A/c |
Dr. |
|
5,00,000 |
|
|
To Equity Share Capital A/c |
|
|
5,00,000 |
|
|
(Share Application and Allotment money transferred to Equity Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c |
Dr. |
|
2,50,000 |
|
|
To Equity Share Capital A/c |
|
|
2,50,000 |
|
|
(Share First Call due on 10,000 shares of Rs 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,50,000 |
|
|
To Equity Share First-Call A/c |
|
|
2,50,000 |
|
|
(First Call money received) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Final Call A/c |
Dr. |
|
2,50,000 |
|
|
To Equity Share Capital A/c |
|
|
2,50,000 |
|
|
(Equity Share Final Call due on 10,000 shares of Rs 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,40,000 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
10,000 |
|
|
To Equity Share Final Call A/c |
|
|
2,50,000 |
|
|
(Share Final Call of Rs 25 per share received on 9,600 shares and holders of 400 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
40,000 |
|
|
To Share Forfeiture A/c |
|
|
30,000 |
|
|
To Calls-In-Arrears A/c |
|
|
10,000 |
|
|
(400 shares of Rs 100 each forfeited for the non-payment final call Rs 25 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
10,000 |
|
|
Share Forfeiture A/c |
Dr. |
|
10,000 |
|
|
To Equity Share Capital A/c |
|
|
20,000 |
|
|
(200 shares of Rs 100 each re-issued at Rs 50 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
5,000 |
|
|
To Capital Reserve A/c |
|
|
5,000 |
|
|
(Balance in Share Forfeiture of 200 shares of after re-issue, transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Note-
Share Forfeiture |
Rs |
75 |
Cr. |
Share Forfeiture |
Rs |
50 |
Dr. |
Balance in Share Forfeiture Account for re-issued shares |
Rs |
25 |
Cr. per share |
Capital Reserve = Balance in Share Forfeiture Account for re-issued shares × Number of Share reissued
= Rs 25 × 200 = Rs 5,000
Page No 8.120:
Question 48:
Sunshine Ltd. issued 20,000 shares of â¹ 100 each payable â¹ 25 per share on application , â¹ 25 per share on allotment and the balance in two calls of â¹ 25 each. The company did not make the final call of â¹ 25 per share. All the money was duly received with the exception of the amount due on the first call on 400 shares held by Mr. Modi. The Board of Directors forfeited these shares and subsequently reissued them @ â¹ 75 per share paid-up for a sum of â¹ 28,000.
Journalise the above transactions and prepare Share Capital Account.
Answer:
Issued and applied capital 20,000 shares of â¹ 100 each
Payable as:
Application |
â¹ |
25 |
|
Allotment |
â¹ |
25 |
|
First Call |
â¹ |
25 |
|
Called-up |
â¹â |
75 |
per share |
Final Call |
â¹ |
25 |
|
|
â¹ |
100 |
per share |
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
To Share Application A/c |
|
|
5,00,000 |
|
|
(Share application money received for 20,000 shares at Rs 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
5,00,000 |
|
|
To Share Capital A/c |
|
|
5,00,000 |
|
|
(Application money transferred to Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
5,00,000 |
|
|
To Share Capital A/c |
|
|
5,00,000 |
|
|
(Share Allotment due on 20,000 shares at Rs 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
To Share Allotment A/c |
|
|
5,00,000 |
|
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
5,00,000 |
|
|
To Share Capital A/c |
|
|
5,00,000 |
|
|
(Share First Call due on 20,000 shares of Rs 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
4,90,000 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
10,000 |
|
|
To Share First Call A/c |
|
|
5,00,000 |
|
|
(Share First Call Rs 25 per share received on 19,600 shares and a holder of 400 shares did not pay it) |
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
30,000 |
|
|
To Share Forfeiture A/c |
|
|
20,000 |
|
|
To Calls-in-Arrears A/c |
|
|
10,000 |
|
|
(400 shares of Rs 100 each, Rs 75 called-up, forfeited for the non-payment of Share First Call Rs 25 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
28,000 |
|
|
Share Forfeiture A/c |
Dr. |
|
2,000 |
|
|
To Share Capital A/c |
|
|
30,000 |
|
|
(400 shares of Rs 100 each, Rs 75 paid-up, reissued for the sum of Rs 28,000) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
18,000 |
|
|
To Capital Reserve A/c |
|
|
18,000 |
|
|
(Balance in share forfeiture after re-issue, transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
Share Capital Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount (â¹) |
Particulars |
Amount (â¹) |
||
|
|
|
|
||
Share Forfeiture |
20,000 |
Share Application |
5,00,000 |
||
Calls-in-Arrears |
10,000 |
Share Allotment |
5,00,000 |
||
|
|
Share First Call |
5,00,000 |
||
|
|
Bank |
28,000 |
||
Balance c/d |
|
Share Forfeiture |
2,000 |
||
|
|
|
|
||
|
15,30,000 |
|
15,30,000 |
||
|
|
|
|
Working Note-
Share Forfeiture Credit |
20,000 |
Less: Share Forfeiture Debit |
2,000 |
Balance in Share Forfeiture Account after re-issue |
18,000 |
Capital Reserve = Balance in Share Forfeiture Account after re-issue
= â¹ 18,000
Page No 8.120:
Question 49:
The Hindustan Manufacturing Ltd. had a total subscribed capital of â¹ 10,00,000 in Equity Shares of â¹ 10 each of which â¹ 7.50 were called-up. A final call of â¹ 2.50 was made and all amount paid except two calls of â¹ 2.50 each in respect of 100 shares held by D . These shares were forfeited and reissued at â¹ 8 per share .
Pass necessary journal entries (including that of cash) to record the transactions of final call , forfeiture of shares and reissue of forfeited shares . Also, prepare the Balance Sheet of the company.
Answer:
Books of Hindustan Manufacturing Limited |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Equity Share Final Call A/c |
Dr. |
|
2,50,000 |
|
|
To Equity Share Capital A/c |
|
|
2,50,000 |
|
|
(Share Final Call due on 1,00,000 shares at Rs 2.5 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,49,750 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
250 |
|
|
To Equity Share Final Call A/c |
|
|
2,50,000 |
|
|
(Share Final Call of Rs 2.5 per share received from 99,900 shares and 100 shares did not pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
1,000 |
|
|
To Share Forfeiture A/c |
|
|
500 |
|
|
To Calls-in-Arrears A/c |
|
|
500 |
|
|
(100 shares of Rs 10 each forfeited for the non-payment of two calls of Rs 2.5 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
800 |
|
|
Share Forfeiture A/c |
Dr. |
|
200 |
|
|
To Equity Share Capital A/c |
|
|
1,000 |
|
|
(100 shares of Rs 10 each reissued at Rs 8 per share, fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
300 |
|
|
To Capital Reserve A/c |
|
|
300 |
|
|
(Balance in Share Forfeiture Account after re-issue of shares, transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
Hindustan Manufacturing Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
10,00,000 |
b. Reserves and Surplus |
2 |
300 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
10,00,300 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
10,00,300 |
Total |
|
10,00,300 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
1 |
Share Capital |
|
|
Authorised Share Capital |
|
|
1,00,000 shares of Rs 10 each |
10,00,000 |
|
Issued Share Capital |
|
|
1,00,000 shares of Rs 10 each |
10,00,000 |
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
1,00,000 shares of Rs 10 each |
10,00,000 |
|
||
2 |
Reserves and Surplus |
|
|
Capital Reserve |
300 |
|
|
|
3 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
10,00,300 |
|
|
|
Working Notes:
Share Forfeiture Credit (100 shares × Rs 5 each) |
500 |
|
Less: Share Forfeiture Debit (100 share × Rs 2 each) |
200 |
Loss on re-issue |
Balance in Share Forfeiture Account after re-issue |
300 |
|
Capital Reserve = Balance in Share Forfeiture Account after re-issue = Rs 300
Page No 8.120:
Question 50:
On 1st May,2014, Directors of a Limited Company forfeited 200 shares of â¹ 20 each , â¹ 15 per share called-up, on which â¹ 10 per share has been paid by A , the amount of the first call of â¹ 5 per share being unpaid . Ten days Later, the Directors reissued the forfeited shares to B credited as â¹ 15 per share paid-up , for a payment of â¹ 10 per share.
Give journal entries in the company's books to record the forfeited shares and their reissue.
Answer:
Journal Entries |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2014 |
|
|
|
|
|
May 01 |
Share Capital A/c (15 × 200) |
Dr. |
|
3,000 |
|
|
To Share Forfeiture A/c (10 × 200) |
|
|
2,000 |
|
|
To Calls-in-Arrears A/c (5 × 200) |
|
|
1,000 |
|
|
(200 shares of Rs 20 each, Rs 15 called-up forfeited for the non-payment Rs 5 per share) |
|
|
|
|
|
|
|
|
|
|
May 11 |
Bank A/c (10 × 200) |
Dr. |
|
2,000 |
|
|
Share Forfeiture A/c (5 × 200) |
Dr. |
|
1,000 |
|
|
To Share Capital A/c (15 × 200) |
|
|
3,000 |
|
|
(200 shares of Rs 20 each re-issued at Rs 10 each, Rs 15 paid-up) |
|
|
|
|
|
|
|
|
|
|
May 11 |
Share Forfeiture A/c |
Dr. |
|
1,000 |
|
|
To Capital Reserve A/c |
|
|
1,000 |
|
|
(Balance in share forfeiture after re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Note-
Share Forfeiture Credit (at the time of forfeiture) |
2,000 |
Less: Share Forfeiture Debit (at the time of re-issue) |
1,000 |
Balance in Share Forfeiture Account after re-issue |
1,000 |
Capital Reserve = Balance in Share Forfeiture Account after re-issue = Rs 1,000
Page No 8.121:
Question 51:
X Ltd . forfeited 100 shares of â¹ 10 each (â¹ 8 called-up) issued at a premium of â¹ 2 per share to Mr. R, on which he had paid applications money of â¹ 5 per share , for non-payment of allotment money of â¹ 5 per share (including premium). Out of these, 70 shares were reissued to Mr . Sanjay as â¹ 8 called-up for â¹ 7 per share. Give necessary journal entries relating to forfeiture and reissue of shares.
Answer:
Books of X Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Share Capital A/c (100 × 8) |
Dr. |
|
800 |
|
|
Securities Premium A/c (100 × 2) |
Dr. |
|
200 |
|
|
To Share Forfeiture A/c (100 × 5) |
|
|
500 |
|
|
To Calls-in-Arrears A/c (100 × 5) |
|
|
500 |
|
|
(100 shares of Rs 10 each, Rs 8 called-up with premium Rs 2 per share, forfeited for the non-payment of Rs 5 each including Rs 2 premium) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
490 |
|
|
Share Forfeiture A/c |
Dr. |
|
70 |
|
|
To Share Capital A/c |
|
|
560 |
|
|
(70 shares of Rs 10 each re-issued at Rs 7 per share, Rs 8 paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
280 |
|
|
To Capital Reserve A/c |
|
|
280 |
|
|
(Balance of 70 shares re-issued shares in Share Forfeiture Account transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Note-
Share Forfeiture Credit |
5 |
per share |
Less: Share Forfeiture Debit |
1 |
per share |
Balance in Share Forfeiture of re-issued shares |
4 |
per share |
Capital Reserve = Balance in Share Forfeiture Account of re-issued shares × No. of shares re-issued
= 70 × 4
= Rs 280
Page No 8.121:
Question 52:
Bee Ltd. Company forfeited 100 Equity Shares of the face value of â¹ 10 each, â¹ 6 per share called-up, for non-payment of first call of â¹ 2 per share. The forfeited shares were subsequently reissued as fully paid-up @ â¹ 7 each.
Give necessary entries in the company's Journal.
Answer:
Books of Bee Ltd. Company Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
600 |
|
|
To Share Forfeiture A/c |
|
|
400 |
|
|
To Calls-in-Arrears A/c |
|
|
200 |
|
|
(100 shares of Rs 10 each Rs 6 called up, forfeited for the non-payment of first call Rs 2 per shares) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
700 |
|
|
Share Forfeiture A/c |
Dr. |
|
300 |
|
|
To Share Capital A/c |
|
|
1,000 |
|
|
(100 shares of 10 each re-issued at Rs 7 per share, fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
100 |
|
|
To Capital Reserve A/c |
|
|
100 |
|
|
(Balance in Share Forfeiture of re-issued shares transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Note-
Share Forfeiture Credit |
â¹ |
400 |
Share Forfeiture Debit |
â¹ |
300 |
Balance in Share Forfeiture of re-issued shares |
|
100 |
Capital Reserve = Balance in Share Forfeiture of re-issued shares = â¹ 100
Page No 8.121:
Question 53:
Give necessary journal entries:
(i) The Directors of Devendra Ltd. resolved on 1st January, 2010 that Equity Shares of â¹ 10 each, â¹ 8 paid-up be forfeited for non-payment of final call of â¹ 2. On 1st February, 60 of these shares were reissued @ â¹ 7 per share as fully paid-up.
(ii) Virender Limited forfeited 20 shares of â¹ 100 each(â¹ 60 called-up) issued at par to Mukesh on which he had paid â¹ 20 per share . Out of these, 15 shares were reissued to Sanjeev as â¹ 60 paid-up for â¹ 45 per share.
Answer:
(i) |
Book of Devendra Limited |
|||||
Journal |
||||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
2010 |
|
|
|
|
||
Jan. 01 |
Equity Share Capital A/c |
Dr. |
|
1,000 |
|
|
|
To Share Forfeiture A/c |
|
|
800 |
||
|
To Calls-in-Arrears A/c |
|
|
200 |
||
|
(100 shares of Rs 10 each forfeited for the non-payment of Rs 2 per share) |
|
|
|
||
|
|
|
|
|
||
Feb. 01 |
Bank A/c |
Dr. |
|
420 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
180 |
|
|
|
To Equity Share Capital A/c |
|
|
600 |
||
|
(60 shares of Rs 10 each re-issued at Rs 7 per share, fully paid-up) |
|
|
|
||
|
|
|
|
|
||
|
Share Forfeiture A/c |
Dr. |
|
300 |
|
|
|
To Capital Reserve A/c |
|
|
300 |
||
|
(Balance in Share Forfeiture Account of 60 shares after re-issue transferred to Capital Reserve) |
|
|
|
||
|
|
|
|
|
Working Note:
Forfeiture of re-issued shares
Share Forfeiture Credit |
Rs |
8 |
per share |
Share Forfeiture Debit |
Rs |
3 |
per share |
Balance in Share Forfeiture after re-issue |
|
5 |
per share |
General Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued
= Rs 5 × 60
= Rs 300
(ii) |
Book of Virender Limited |
|||||
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
|
|
|
|
||
|
Share Capital A/c |
Dr. |
|
1,200 |
|
|
|
To Share Forfeiture A/c |
|
|
400 |
||
|
To Calls-in-Arrears A/c |
|
|
800 |
||
|
(20 shares of Rs 100 each Rs 60 called-up forfeited for the non-payment of Rs 40 per share) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
675 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
225 |
|
|
|
To Share Capital A/c |
|
|
900 |
||
|
(15 shares of Rs 100 each re-issued for Rs 45 per share as Rs 60 paid-up) |
|
|
|
||
|
|
|
|
|
||
|
Share Forfeiture A/c |
Dr. |
|
75 |
|
|
|
To Capital Reserve A/c |
|
|
75 |
||
|
(Balance in Share Forfeiture of 15 re-issued shares transferred to Capital Reserve) |
|
|
|
||
|
|
|
|
|
Working Note:
Forfeiture of reissued shares |
|||
Share Forfeiture Credit (at the time of forfeiture ) |
Rs |
20 |
per share |
Share Forfeiture Debit (at the time of re-issue) |
Rs |
15 |
per share |
Balance in Share Forfeiture after re-issue |
Rs |
5 |
per share |
Capital Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued
= Rs 5 × 15 Shares
= Rs 75
Page No 8.121:
Question 54:
Show the forfeiture and reissue entries under each of the following cases:
(i) X Ltd. forfeited 300 shares of â¹ 10 each, â¹ 8 called-up held by Mr. A for non-payment of second call money of â¹ 3 per share. These shares were reissued to Mr. Z for â¹ 10 per share as fully paid-up.
(ii) Y Ltd. forfeited 400 shares of â¹ 10 each, fully called-up, held by Mr. B for non-payment of final call money of â¹ 4 per share. These shares were reissued to Mr. T at â¹ 12 per share as fully paid-up.
(iii) Light Ltd. forfeited 250 shares of â¹ 10 each, fully called-up held by Mr. C for non-payment of allotment money of â¹ 3 per share and first and final call money of â¹ 4 per share. These shares were reissued @ â¹ 8 per share as fully paid-up to Mr. P.
Answer:
(i) |
Books of X Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹â) |
Credit Amount (â¹â) |
||
|
|
|
|
|
||
|
Share Capital |
Dr. |
|
2,400 |
|
|
|
To Share Forfeiture A/c |
|
|
1,500 |
||
|
To Calls-in-Arrears A/c |
|
|
900 |
||
|
(300 shares of â¹ 10 each on which had called â¹ 8, forfeited for non-payment of second call â¹ 3 per share) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
3,000 |
|
|
|
To Share Capital A/c |
|
|
3,000 |
||
|
(300 shares of â¹ 10 each re-issued) |
|
|
|
||
|
|
|
|
|
||
|
Share Forfeiture A/c |
Dr. |
|
1,500 |
|
|
|
To Capital Reserve A/c |
|
|
1,500 |
||
|
(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve) |
|
|
|
||
|
|
|
|
|
Working Notes-
Share Forfeiture Credit (at the time of forfeiture of shares) |
1,500 |
Less: Share Forfeiture Debit (at the time of re-issue shares) |
NIL |
Balance in Share Forfeiture after re-issue of shares |
1,500 |
Capital Reserve = Balance in Share Forfeiture of re-issued shares
= â¹ 1,500
(ii) |
Books of Y Limited Journal |
||||
Date |
Particulars |
L.F. |
Debit Amount (â¹â) |
Credit Amount (â¹â) |
|
|
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
4,000 |
|
|
To Share Forfeiture A/c |
|
|
2,400 |
|
|
To Calls-in-Arrears A/c |
|
|
1,600 |
|
|
(400 shares of â¹ 10 forfeited for the non-payment of final call â¹ 4 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
4,800 |
|
|
To Share Capital A/c |
|
|
4,000 |
|
|
To Securities Premium A/c |
|
|
800 |
|
|
(400 shares of â¹10 each re-issued at â¹ 12 per share as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,400 |
|
|
To Capital Reserve A/c |
|
|
2,400 |
|
|
(Balance of Share Forfeiture after re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Notes-
Share Forfeiture Credit (at the time of forfeiture of shares) |
2,400 |
Less: Share Forfeiture Debit (at the time of re-issue shares) |
NIL |
Balance in Share Forfeiture after re-issue of shares |
2,400 |
Capital Reserve = Balance in Share Forfeiture of re-issued shares
= â¹ 2,400
(iii) |
Books of Light Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹â) |
Credit Amount (â¹â) |
||
|
|
|
|
|
||
|
Share Capital A/c |
Dr. |
|
2,500 |
|
|
|
To Share Forfeiture A/c (250×3) |
|
|
750 |
||
|
To Calls-in-Arrears A/c |
|
|
1,750 |
||
|
(250 shares of â¹ 10 each forfeited for the non-payment â¹ 7 per share) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
2,000 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
500 |
|
|
|
To Share Capital A/c |
|
|
2,500 |
||
|
(250 shares of â¹ 10 each re-issued for â¹ 8 per share as fully paid-up ) |
|
|
|
||
|
|
|
|
|
||
|
Share Forfeiture A/c |
Dr. |
|
250 |
|
|
|
To Capital Reserve A/c |
|
|
250 |
||
|
(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve) |
|
|
|
||
|
|
|
|
|
Working Notes-
Share Forfeiture Credit (at the time of forfeiture of shares) |
750 |
Less: Share Forfeiture Debit (at the time of re-issue shares) |
500 |
Balance in Share Forfeiture after re-issue of shares |
250 |
Capital Reserve = Balance in Share Forfeiture of re-issued shares = â¹ 250
Page No 8.121:
Question 55:
Record the journal entries for forfeiture and reissue of shares in the following cases:
(i) Basak Ltd. forfeited 20 shares of â¹ 10 each, â¹ 7 called-up on which the shareholder had paid application and allotment money of â¹ 5 per share. Out of these, 15 shares were reissued to Naresh as â¹ 7 per share paid-up for â¹ 8 per share.
(ii) Y Ltd. forfeited 90 shares of â¹ 10 each, â¹ 8 called-up issued at a premium of â¹ 2 per share to 'R' for non-payment of allotment money of â¹ 5 per share (including premium). Out of these, 80 shares were reissued to Sanjay as â¹ 8 called-up for â¹ 10 per share.
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
(i) |
Share Capital A/c (20 Shares × 7) |
Dr. |
|
140 |
|
|
|
To Share Forfeiture A/c (20 Shares × 5) |
|
|
|
100 |
|
|
To Calls-in- Arrears A/c (20 Shares × 2) |
|
|
|
40 |
|
|
(20 Shares of Rs 10 each, Rs 7 called-up forfeited for the non-payment of call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (15 Shares × 8) |
Dr. |
|
120 |
|
|
|
To Share Capital A/c (15 Shares × 7) |
|
|
|
105 |
|
|
To Securities Premium A/c (15 Shares × 1) |
|
|
|
15 |
|
|
(15 shares were reissued as Rs 7 paid-up for Rs 8 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Forfeiture A/c (15 Shares × 5) |
Dr. |
|
75 |
|
|
|
To Capital Reserve A/c |
|
|
|
75 |
|
|
(Transfer of profit on re-issue of 15 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
(ii) |
Share Capital A/c (90 Shares × 8) |
Dr. |
|
720 |
|
|
|
Securities Premium A/c (90 Shares × 2) |
Dr. |
|
180 |
|
|
|
To Share Forfeiture A/c (90 Shares × 5) |
|
|
|
450 |
|
|
To Share Allotment A/c (90 Shares × 5) |
|
|
|
450 |
|
|
(Shares forfeited for non-payment of allotment) |
|
|
|
|
|
|
Bank A/c (80 Shares × 10) |
Dr. |
|
800 |
|
|
|
To Share Capital A/c (80 Shares × 8) |
|
|
|
640 |
|
|
To Securities Premium A/c (80 Shares × 2) |
|
|
|
160 |
|
|
(80 shares were reissued for Rs 10, Rs 8 called-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Forfeiture A/c (80 Shares × 5) |
Dr. |
|
400 |
|
|
|
To Capital Reserve A/c |
|
|
|
400 |
|
|
(Transfer of profit on re-issue of 80 shares) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes-
Note 1
Note 2
Page No 8.121:
Question 56:
Star Ltd. forfeited 500 Equity Shares of â¹ 100 each for non-payment of first call of â¹ 30 per share . The final call of â¹ 10 per share was not yet made. Out of these, 60% shares were reissued for â¹ 39,000 fully paid. journalise the forfeiture and reissue of shares.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Equity Share Capital A/c (500×90) |
Dr. |
|
45,000 |
|
|
To Equity Share 1st Call A/c (500×30) |
|
|
|
15,000 |
|
To Share Forfeited A/c (500×60) |
|
|
|
30,000 |
|
( 500 equity shares forfeited for non-payment of final call) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (300×130) |
Dr. |
|
39,000 |
|
|
To Equity Share Capital A/c (300×100) |
|
|
|
30,000 |
|
To Security Premium Reserve A/c (300×30) |
|
|
|
9,000 |
|
(300 shares are reissued @130 per share) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeited A/c |
Dr. |
|
18,000 |
|
|
To Capital Reserve A/c |
|
|
|
18,000 |
|
( Profit on reissue of 300 shares transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working Note:
Amount transferred to Capital Reserve
Shares Re-issued = 300
Shares Forfeited = 500
Amount forfeited in respect of 300 shares =
=
Page No 8.121:
Question 57:
A holds 100 shares of â¹ 10 each on which he has paid â¹ 1 per share on application.
B holds 200 shares of â¹ 10 each on which he has paid â¹ 1 and â¹ 2 per share on application and allotment respectively.
C holds 300 shares of â¹ 10 each and has paid â¹ 1 on application, â¹ 2 on allotment and â¹ 3 on first call. They all fail to pay their arrears and the second call of â¹ 2 per share . Shares are forfeited and subsequently reissued @ â¹ 11 per share as fully paid-up.
journalise the above.
Answer:
Application |
Rs |
1 |
|
Allotment |
Rs |
2 |
|
First Call |
Rs |
3 |
|
Second Call |
Rs |
2 |
|
|
Rs |
8 |
Called-up |
Journal Entries |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Forfeiture of Shares |
|
|
|
|
|
Shares of A |
|
|
|
|
|
Share Capital A/c |
Dr. |
|
800 |
|
|
To Share Forfeiture A/c |
|
|
100 |
|
|
To Calls-In-Arrears A/c |
|
|
700 |
|
|
(100 shares of Rs 10 each, Rs 8 called-up, held by A forfeited for the non-payment of Rs 7 per share) |
|
|
|
|
|
|
|
|
|
|
|
Shares of B |
|
|
|
|
|
Share Capital A/c |
Dr. |
|
1,600 |
|
|
To Share Forfeiture A/c |
|
|
600 |
|
|
To Calls-in-Arrears A/c |
|
|
1,000 |
|
|
(200 shares of Rs 10 each, Rs 8 called-up, held by B forfeited for non-payment of Rs 5 per share) |
|
|
|
|
|
|
|
|
|
|
|
Shares of C |
|
|
|
|
|
Share Capital A/c |
Dr. |
|
2,400 |
|
|
To Share Forfeiture A/c |
|
|
1,800 |
|
|
To Calls-in-Arrears A/c |
|
|
600 |
|
|
(300 shares of Rs 10 each, Rs 8 called-up held by C forfeited for the non-payment of Rs 2 per share) |
|
|
|
|
|
Re-issue of shares |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,600 |
|
|
To Share Capital A/c |
|
|
6,000 |
|
|
To Securities Premium A/c |
|
|
600 |
|
|
(600 shares of Rs 10 each re-issued at Rs 11 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,500 |
|
|
To Capital Reserve A/c |
|
|
2,500 |
|
|
(Share Forfeiture transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Share Forfeiture of 100 shares held by A |
Rs |
100 |
Cr. |
Share Forfeiture of 200 shares held by B |
Rs |
600 |
Cr. |
Share Forfeiture of 300 shares held by C |
Rs |
1,800 |
Cr. |
Total Share Forfeiture credit (at the time of cancellation of shares) |
Rs |
2,500 |
|
Calculation of Capital Reserve
Total Share Forfeiture (at the time of cancellation of shares) = Rs 2,500 Cr.
Less: Total Share Forfeiture (at the time of re-issue of shares) = (NIL) Dr.
Capital Reserve =Rs 2,500
Page No 8.121:
Question 58:
Software Ltd. company with registered capital of â¹ 5,00,000 in shares of â¹ 10 each issued 20,000 of such shares payable â¹ 2 on application, â¹ 4 on allotment, â¹ 2 on first call â¹ 2 on final call. All the money payable on allotment was duly received but on the first call being made, one shareholder paid the entire balance on his holding of 300 shares and five shareholders with a total holding of 1,000 shares failed to pay their dues on the first call. These shares were forfeited for non-payment of first call money. Final call was made and all the money due was received. Later on, forfeited shares were reissued @ â¹ 6 per share as fully paid-up.
Record the above in the company's Journal and prepare the Balance Sheet.
Answer:
Amount payable as
Application |
â¹ |
2 |
Allotment |
â¹ |
4 |
First Call |
â¹ |
2 |
Final Call |
â¹ |
2 |
|
|
10 |
Books of Software Ltd. |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
40,000 |
|
|
To Share Application A/c |
|
|
40,000 |
|
|
(Share application money received for 20,000 shares at â¹ 2 each) |
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
40,000 |
|
|
To Share Capital A/c |
|
|
40,000 |
|
|
(Share application money of 20,000 shares at â¹ 2 each transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
80,000 |
|
|
To Share Capital A/c |
|
|
80,000 |
|
|
(Share allotment due on 20,000 shares at â¹ 4 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
80,000 |
|
|
To Share Allotment A/c |
|
|
80,000 |
|
|
(Share allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
40,000 |
|
|
To Share Capital A/c |
|
|
40,000 |
|
|
(Share first call due on 20,000 shares at â¹ 2 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
38,600 |
|
|
Call-in-Arrears A/c (1,000×2) |
Dr. |
|
2,000 |
|
|
To Share First Call A/c |
|
|
40,000 |
|
|
To Calls-in-Advance (300×2) |
|
|
600 |
|
|
(Share first call of â¹ 2 per share received on 19,000 shares along with calls-in-advance of 300 shares at â¹ 2 each and holders of 1,000 shares failed to pay the first call) |
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
8,000 |
|
|
To Share Forfeiture A/c (1,000×6) |
|
|
6,000 |
|
|
To Calls-In-Arrears A/c |
|
|
2,000 |
|
|
(1,000 shares of â¹ 10 each on which â¹ 8 had called, forfeited for non-payment of first call â¹ 2 per share) |
|
|
|
|
|
|
|
|
|
|
|
Share Final Call A/c |
Dr. |
|
38,000 |
|
|
To Share Capital A/c |
|
|
38,000 |
|
|
(Share final call due on 19,000 shares at â¹ 2 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
37,400 |
|
|
Calls-In-Advance A/c |
Dr. |
|
600 |
|
|
To Share Final Call A/c |
|
|
38,000 |
|
|
(Share final call received from 18,700 shares and calls-in-advance of 300 shares adjusted) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,000 |
|
|
Share Forfeiture A/c |
Dr. |
|
4,000 |
|
|
To Share Capital A/c |
|
|
10,000 |
|
|
(1,000 shares, re-issued at â¹ 6 per share as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,000 |
|
|
To Capital Reserve A/c |
|
|
2,000 |
|
|
(Balance of Share Forfeiture Account after re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
A Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (â¹) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
2,00,000 |
b. Reserves and Surplus |
2 |
2,000 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
2,02,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
2,02,000 |
Total |
|
2,02,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (â¹) |
1 |
Share Capital |
|
|
Authorised Share Capital |
|
|
50,000 shares of Rs 10 each |
5,00,000 |
|
Issued Share Capital |
|
|
20,000 shares of Rs 10 each |
2,00,000 |
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
20,000 shares of Rs 10 each |
2,00,000 |
|
||
2 |
Reserves and Surplus |
|
|
Capital Reserve |
2,000 |
|
|
|
3 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
2,02,000 |
|
|
|
Working Notes:
Share Forfeiture Credit (at the time of forfeiture of shares) |
6,000 |
Less: Share Forfeiture Debit (at the time of re-issue shares) |
4,000 |
Balance in Share Forfeiture Account after re-issue of shares |
2,000 |
Capital Reserve = Balance in Share Forfeiture Account of re-issued shares = Rs 2,000
Page No 8.122:
Question 59:
New Company Ltd. has a nominal capital of â¹ 2,50,000 in shares of â¹ 10. Of these, 4,000 shares were issued as fully paid in payment of building purchased , 8,000 shares were subscribed by the public and during the first year â¹ 5 per share were called-up, payable â¹ 2 on application , â¹ 1 on allotment, â¹ 1 on first call and â¹ 1 on second call . The amounts received in respect of these shares were:
On 6,000 shares | Full amount called, |
On 1,250 shares | â¹ 4 per share, |
On 500 shares | â¹ 3 per share, |
On 250 shares | â¹ 2 per share. |
The Directors forfeited the 750 shares on which less than â¹ 4 had been paid . The shares were subsequently reissued at â¹ 3 per share .
Pass journal entries recording the above transactions and prepare the company's Balance Sheet.
Answer:
Authorised Capital 25,000 shares of Rs 10 each
Issued Capital:
4,000 shares to the vendor of building
8,000 shares issued to public
Share Issued to public payable as:
Application |
Rs |
2 |
Per Share |
(6,000 + 1,250 + 500 + 250 |
= |
8,000) |
Allotment |
Re |
1 |
Per Share |
(6,000 + 1,250, + 500 |
= |
7,750) |
First Call |
Re |
1 |
Per Share |
(6,000 + 1,250 |
= |
7,250) |
Second Call |
Re |
1 |
Per Share |
(6,000 + |
= |
6,000) |
|
|
5 |
Per Share |
|
|
|
Shares to be forfeited (on which paid less then Rs 4) are as:
Shares on which paid Rs 3 per share |
500 |
Shares on which paid Rs 2 per share |
250 |
Number of shares to be forfeited = |
750 |
Books of New Company Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Building A/c |
Dr. |
|
40,000 |
|
|
To Vendor |
|
|
40,000 |
|
|
(Building purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor |
Dr. |
|
40,000 |
|
|
To Share Capital A/c |
|
|
40,000 |
|
|
(4,000 shares of Rs 10 each issued to the vendor in consideration of building purchased) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
16,000 |
|
|
To Share Application A/c |
|
|
16,000 |
|
|
(Share application money received for 8,000 shares at Rs 2 each) |
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
16,000 |
|
|
To Share Capital A/c |
|
|
16,000 |
|
|
(Share application of 8,000 shares transferred to Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
8,000 |
|
|
To Share Capital A/c |
|
|
8,000 |
|
|
(Share allotment due on 8,000 shares at Re 1 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
7,750 |
|
|
Calls-In-Arrears A/c |
Dr. |
|
250 |
|
|
To Share Allotment A/c |
|
|
8,000 |
|
|
(Share Allotment of Re 1 each received from 7,750 shares and holders of 250 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
8,000 |
|
|
To Share Capital A/c |
|
|
8,000 |
|
|
(Share first call due on 8,000 shares at Re 1each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
7,250 |
|
|
Calls-In-Arrears A/c |
Dr. |
|
750 |
|
|
To Share First-Call A/c |
|
|
8,000 |
|
|
(Share first call Re 1 received 7,250 shares and holders of 750 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Share Second Call A/c |
Dr. |
|
8,000 |
|
|
To Share Capital A/c |
|
|
8,000 |
|
|
(Share final call due on 8,000 shares at Re 1 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,000 |
|
|
Calls-In-Arrears A/c |
Dr. |
|
2,000 |
|
|
To Share Second Call A/c |
|
|
8,000 |
|
|
(Share second call Re 1 received from 6,000 shares and holder of 2,000 share failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c (750 × 5) |
Dr. |
|
3,750 |
|
|
To Share Forfeiture A/c ((500 × 3) + (250 × 2)) |
|
|
2,000 |
|
|
To Calls in Arrears (500 × 2 + 250 × 3) |
|
|
1,750 |
|
|
(750 shares of Rs 10 each Rs 5 called-up on which less than Rs 4 had received, were forfeited) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,250 |
|
|
Share Forfeiture A/c |
Dr. |
|
1,500 |
|
|
To Share Capital A/c |
|
|
3,750 |
|
|
(750 shares re-issued at Rs 3 per share as Rs 5 paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
500 |
|
|
To Capital Reserve |
|
|
500 |
|
|
(Balance in Share Forfeiture Account transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
New Company Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
78,750 |
b. Reserves and Surplus |
2 |
500 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
79,250 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
a. Fixed Assets |
|
|
i. Tangible Assets |
3 |
40,000 |
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
4 |
39,250 |
Total |
|
79,250 |
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
25,000 shares of Rs 10 each |
2,50,000 |
|
|
Issued Share Capital |
|
|
|
12,000 shares of Rs 10 each |
1,20,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
4,000 shares of Rs 10 each(for consideration other than cash) |
40,000 |
|
|
8,000 shares of Rs 10 each, Rs 5 Called-up |
40,000 |
|
|
Less: Calls in Arrears (1,250 shares × Re 1) |
(1,250) |
78,750 |
|
|
|
|
2 |
Reserves and Surplus |
|
|
Capital Reserve |
500 |
||
|
|||
3 |
Tangible Assets |
|
|
Building |
40,000 |
||
|
|||
4 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
39,250 |
|
|
|
|
Working Notes:
1.
Calls-in-Arrears on Allotment (250 shares × Re 1) |
250 |
Calls-in-Arrears on First Call (750 shares × Re 1) |
750 |
Calls-in-Arrears on Second Call (2,000 shares × Re 1) |
2,000 |
Total Calls-in-Arrears Debit |
3,000 |
Less: Calls-in-Arrears Credit (at the time of forfeiture) |
(1,750) |
Calls-in-Arrears to be shown in the Balance Sheet |
1250 |
2. Calculation of amount of share forfeiture credited on shares re-issued shares
Share Forfeiture of 250 shares (on which Rs 2 per share paid) |
Rs |
500 |
Cr. |
Share Forfeiture of 500 shares (on which Rs 3 per share paid) |
Rs |
1,500 |
Cr. |
Total Share Forfeiture credit (on 750 shares) |
Rs |
2,000 |
|
Calculation of Capital Reserve
Total Share Forfeiture (on 750 shares) = Rs 2,000 credit
Less: Share Forfeiture (750 shares × Rs 2 per share) = Rs (1,500) debit
Capital Reserve = Rs 500
Page No 8.122:
Question 60:
Slow & Steady Ltd. invited applications for 10,000 Equity Shares of â¹ 10 each for public subscription. The amount of these shares was payable as:
On application â¹ 1 per share, on allotment â¹ 2 per share, on first call â¹ 3 per share and on second and final call â¹ 4 per share.
All sums payable on application, allotment and calls were duly received with the following exceptions:
(i) A, who held 200 shares, failed to pay the money on allotments and calls.
(ii) B, to whom 150 shares were allotted, failed to pay the money on first call and final call.
(iii) C, who held 50 shares, did not pay the amount of second and final call.
The shares of A, B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%.
Pass necessary Journal entries to record these transactions in the books of X Ltd.
Answer:
Issued and Applied 10,000 Shares of â¹ 10 each
|
|
|
|
|
A |
|
B |
|
C |
|
Paid-up Shares |
Application |
â¹ |
1 |
(10,000 |
|
|
|
|
|
|
= |
10,000) |
Allotment |
â¹ |
2 |
(10,000 |
– |
200 |
|
|
|
|
= |
9,800) |
First Call |
â¹ |
3 |
(10,000 |
– |
200 |
– |
150 |
|
|
= |
9,650) |
Second and Final Call |
â¹ |
4 |
(10,000 |
– |
200 |
– |
150 |
– |
50 |
= |
9,600) |
|
|
10 |
|
|
|
|
|
|
|
|
|
Books of Slow and Steady Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
10,000 |
|
|
To Equity Share Application A/c |
|
|
10,000 |
|
|
(Share application received for 10,000 shares at â¹ 1 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
10,000 |
|
|
To Equity Share Capital A/c |
|
|
10,000 |
|
|
(Share application money transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
20,000 |
|
|
To Equity Share Capital A/c |
|
|
20,000 |
|
|
(Share allotment due on 10,000 shares at â¹ 2 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
19,600 |
|
|
Calls-In-Arrears A/c |
Dr. |
|
400 |
|
|
To Equity Share Allotment A/c |
|
|
20,000 |
|
|
(Share allotment of â¹ 2 per share received on 9,800 shares and holder of 200 failed to pay to it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c |
Dr. |
|
30,000 |
|
|
To Equity Share Capital |
|
|
30,000 |
|
|
(Share first call due on 10,000 shares at â¹ 3 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
28,950 |
|
|
Calls-In-Arrears A/c |
Dr. |
|
1,050 |
|
|
To Equity Shares First Call A/c |
|
|
30,000 |
|
|
(Share first call received on 9,650 shares and holders of 350 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Final Call A/c |
Dr. |
|
40,000 |
|
|
To Equity Share Capital A/c |
|
|
40,000 |
|
|
(Share final call due on 10,000 shares at â¹ 4 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
38,400 |
|
|
Calls-In-Arrears A/c |
Dr. |
|
1,600 |
|
|
To Equity Share Final Call A/c |
|
|
40,000 |
|
|
(Holders of 9,600 shares paid final call and holders of 400 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
2,000 |
|
|
To Share Forfeiture A/c (200 × 1) |
|
|
200 |
|
|
To Calls-In-Arrears A/c (200 × 9) |
|
|
1,800 |
|
|
(200 shares held by A on which application money â¹ 1 was received, forfeited) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
1,500 |
|
|
To Share Forfeiture A/c (150 × 3) |
|
|
450 |
|
|
To Calls-In-Arrears A/c (150 × 7) |
|
|
1,050 |
|
|
(150 shares of â¹ 10 each held by B forfeited for the non-payment of two calls â¹ each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
500 |
|
|
To Share Forfeiture A/c (50 × 6) |
|
|
300 |
|
|
To Calls-in-Arrears A/c (50 × 4) |
|
|
200 |
|
|
(50 shares of â¹ 10 each held by C forfeited for the non-payment of final call â¹ 4 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (400 × 9.5) |
Dr. |
|
3,800 |
|
|
Share Forfeiture A/c (400 × .5) |
Dr. |
|
200 |
|
|
To Equity Share Capital A/c |
|
|
4,000 |
|
|
(400 shares of â¹ 10 each re-issued at â¹ 9.5 per share as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
750 |
|
|
To Capital Reserve A/c |
|
|
750 |
|
|
(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Share Forfeiture of 100 shares held by A |
â¹ |
200 |
Cr. |
Share Forfeiture of 200 shares held by B |
â¹ |
450 |
Cr. |
Share Forfeiture of 300 shares held by C |
â¹ |
300 |
Cr. |
Total Share Forfeiture credit (at the time of cancellation of shares) |
â¹ |
950 |
|
Calculation of Capital Reserve
Total Share Forfeiture (at the time of cancellation of shares) = â¹ 950
Less: Total Share Forfeiture (at the time of re-issue of shares) = â¹ (200)
Capital Reserve = â¹ 750
Page No 8.122:
Question 61:
A share of â¹ 100 issued at a premium of â¹ 10 on which â¹ 80 (including premium) was called and â¹ 60 (including premium) was paid, has been forfeited. This share was afterwards reissued as fully paid-up for â¹ 70 . Give Journal entries to record the above.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Share Capital A/c (Rs 80 – 10 premium) |
Dr. |
|
70 |
|
|
To Share Forfeiture (Rs 60 – 10 premium) |
|
|
50 |
|
|
To Calls-In-Arrears A/c |
|
|
20 |
|
|
(A share of Rs 100 on which Rs 70 called excluding the amount of securities premium Rs 10, forfeited for non-payment of Rs 20) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
70 |
|
|
Share Forfeiture A/c |
Dr. |
|
30 |
|
|
To Share Capital A/c |
|
|
100 |
|
|
(A share of Rs 100 re-issued at Rs 70 as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
20 |
|
|
To Capital Reserve A/c |
|
|
20 |
|
|
(Balance in Share Forfeiture after re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Page No 8.122:
Question 62:
Pass journal entries in the following cases:
M Ltd forfeited 200 Equity Shares of â¹10 each , issued at a premium of â¹ 5 per share , held by Ram for non-payment of the final call of â¹ 3 per share . Of these , 100 shares were reissued to Vishu at a discount of â¹ 4 per share .
Answer:
|
Journal |
||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
20,000 |
|
|
To Share Forfeiture A/c (2,000 × Rs 7) |
|
|
14,000 |
|
|
To Calls-in-Arrears A/c |
|
|
6,000 |
|
|
(2,000 shares of Rs 10 each forfeited for the non-payment of Rs 3 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
600 |
|
|
Share Forfeiture A/c (100 × Rs 4) |
Dr. |
|
400 |
|
|
To Equity Share Capital A/c |
|
|
1,000 |
|
|
(100 shares of Rs 10 each reissued at Rs 6 per share as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
300 |
|
|
To Capital Reserve A/c |
|
|
300 |
|
|
(Balance in Share Forfeiture of 100 re-issued shares transferred to Capital Reserve ) |
|
|
|
|
|
|
|
|
|
Working Note-
Share Forfeiture of re-issued shares |
|||
Share Forfeiture |
Cr. |
Rs 7 |
per share |
Share Forfeiture |
Dr. |
Rs 4 |
per share |
Balance in share forfeiture after re-issue |
Cr. |
3 |
per share |
Capital Reserve = Balance in Share Forfeiture after re-issue × No. of shares re-issued
= Re 3 × 100 shares
= Rs 300
Page No 8.122:
Question 63:
VT Ltd forfeited 200 shares of â¹ 10 each , issued at a premium of â¹ 5 per share , held by Mohan for non-payment of the final call of â¹ 3 per share . 100 out of these shares were reissued to Narendra at a discount of â¹ 4 per share . Journalise.
Answer:
Books of VT Limited Journal |
||||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
|
|
|
|
||
|
Share Capital A/c (200 × Rs 10) |
Dr. |
|
2,000 |
|
|
|
To Share Forfeiture A/c (200 × Rs 7) |
|
|
1,400 |
||
|
To Calls-in-Arrears A/c |
|
|
600 |
||
|
(200 shares of Rs 10 each forfeited for non-payment of Rs 3 each) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
600 |
|
|
|
Share Forfeiture A/c (100 × Rs 4) |
Dr. |
|
400 |
|
|
|
To Share Capital A/c |
|
|
1,000 |
||
|
(100 shares of Rs 10 each re-issued at Rs 6 per share fully paid-up) |
|
|
|
||
|
|
|
|
|
||
|
Share Forfeiture A/c |
Dr. |
|
300 |
|
|
|
To Capital Reserve A/c |
|
|
300 |
||
|
(Balance in share forfeiture of 100 shares transferred to capital reserve) |
|
|
|
||
|
|
|
|
|
Working Notes:
Share Forfeiture of re-issued shares |
||
Share Forfeiture Cr. |
Rs 7 |
per share |
Share Forfeiture Dr. |
Rs 4 |
per share |
Balance in Share Forfeiture after re-issue |
Rs 3 |
per share |
Capital Reserve |
= Balance in Share Forfeiture after re-issue (per share) × No. of shares re-issued |
|
= Re 3 × 100 |
|
= Rs 300 |
Page No 8.122:
Question 64:
The Directors of a company forfeited 300 shares of â¹ 10 each issued at a premium of â¹ 3 per share , for the non-payment of the first call money of â¹ 2 per share . The final call of â¹ 2 per share has not been made. Half the forfeited shares were reissued at â¹ 1,500 as fully paid-up. Record the journal entries for the forfeiture and reissue of shares.
Answer:
Journal Entries |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Share Capital A/c (300 × 8) |
Dr. |
|
2,400 |
|
|
To Share Forfeiture A/c (300 × 6) |
|
|
1,800 |
|
|
To Calls-In-Arrears (300 × 2) |
|
|
600 |
|
|
(300 shares of Rs 10 each on which Rs 8 had called, forfeited for non-payment Rs 2 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,500 |
|
|
To Share Capital A/c |
|
|
1,500 |
|
|
(150 shares of Rs 10 each re-issued for the sum of Rs 1,500) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
900 |
|
|
To Capital Reserve A/c |
|
|
900 |
|
|
(Balance in Share Forfeiture Account of 150 re-issued shares, transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Notes
Share Forfeiture of Re-issued Shares
Share Forfeiture (at the time of forfeiture) |
Cr. |
6 |
|
Less: Share Forfeiture (at the time of re-issue) |
Dr. |
NIL |
|
Balance in Share Forfeiture after re-issue |
Cr. |
6 |
per share |
Capital Reserve = Balance in Share Forfeiture after reissue (per share) × Number of Shares Reissued
= Rs 6 × 150
= Rs 900
Page No 8.123:
Question 65:
JCV Ltd., forfeited 200 shares of â¹ 10 each issued at a premium of â¹ 2 per share for the non-payment of allotment money of â¹ 3 per share (including premium). The first and final call of â¹ 4 per share has not been made as yet . 50% of the forfeited shares were reissued at â¹ 8 per share as fully paid-up . Pass necessary Journal entries for the forfeiture and reissue of shares.
Answer:
Application |
Rs |
5 |
|
Allotment |
Rs |
3 |
(1+2) |
First and Final Call |
Rs |
4 |
|
|
|
12 |
(10+2) |
Called-up = Application + Allotment
= Rs 5 + 3 (including premium Rs 2)
Book of JCV Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Share Capital A/c (200×6) |
Dr. |
|
1,200 |
|
|
Securities Premium A/c (200×2) |
Dr. |
|
400 |
|
|
To Share Forfeiture A/c (200×5) |
|
|
1,000 |
|
|
To Calls-in-Arrears A/c (200×3) |
|
|
600 |
|
|
(200 shares of Rs 10 each on which Rs 8 had called (including Rs 2 premium), forfeited for the non-payment of allotment Rs 3 (including Rs 2 premium) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
800 |
|
|
Share Forfeiture A/c |
Dr. |
|
200 |
|
|
To Share Capital A/c |
|
|
1,000 |
|
|
(100 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
300 |
|
|
To Capital Reserve |
|
|
300 |
|
|
(Amount of share forfeiture of 100 re-issued shares transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Note
Share Forfeiture of Re-issued Shares
Share Forfeiture (at the time of forfeiture) |
Cr. |
5 |
|
Share Forfeiture (at the time of re-issue) |
Dr. |
2 |
|
Balance in Share Forfeitre (after re-issue) |
Cr. |
3 |
per share |
Capital Reserve
Page No 8.123:
Question 66:
Pass necessary journal entries in the books of the company for the following transactions:
Vishesh Ltd. forfeited 1,000 Equity Shares of â¹ 10 each issued at a premium of â¹ 2 per share for non-payment of allotment money of â¹ 5 per share including premium. The final call of â¹ 2 per share was not yet called on these shares. Of the forfeited shares 800 shares were reissued at â¹ 12 per share as fully paid-up.
The remaining shares were reissued at â¹ 11 per share fully paid-up.
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Equity Share Capital A/c (8×1,000) |
Dr. |
|
8,000 |
|
|
|
Securities Premium A/c (2×1,000) |
Dr. |
|
2,000 |
|
|
|
To Share Forfeiture A/c |
|
|
|
5,000 |
|
|
To Calls-in-Arrears |
|
|
|
5,000 |
|
|
(1,000 shares of Rs 10 each issued at premium of Rs 2 forfeited for non payment of allotment money of Rs 5 including premium, final call of Rs 2 not yet made) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (12×800) |
Dr. |
|
9,600 |
|
|
|
To Share Capital A/c |
|
|
|
8,000 |
|
|
To Securities Premium A/c |
|
|
|
1,600 |
|
|
(800 shares reissued at Rs 12 fully paid up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (11×200) |
Dr. |
|
2,200 |
|
|
|
To Share Capital A/c |
|
|
|
2,000 |
|
|
To Securities Premium A/c |
|
|
|
200 |
|
|
(200 shares reissued at Rs 11 fully paid up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
5,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
5,000 |
|
|
(Profit on reissue transferred to capital reserve) |
|
|
|
|
Page No 8.123:
Question 67:
150 shares of â¹ 10 each issued at a premium of â¹ 4 per share payable with allotment were forfeited for non-payment of allotment money
of â¹ 8 per share including premium. The first and final call of â¹ 4 per share was not made. The forfeited shares were reissued at â¹ 15 per share fully paid-up.
Pass Journal entries in the books of X Ltd. for the above.
Answer:
Date
|
Particulars
|
L.F.
|
Debit
Amount
(â¹)
|
Credit
Amount
(â¹)
|
|
Share Capital A/c |
Dr.
|
900
|
|||
Securities Premium A/c |
Dr.
|
600
|
|||
To Share Allotment A/c |
1,200
|
||||
To Share Forfeiture A/c |
300
|
||||
(150 shares of Rs 10 each forfeited for non–payment of allotment money of Rs 8 per share including premium of Rs 4 per share) | |||||
Bank A/c |
Dr.
|
2,250
|
|||
To Share Capital A/c |
1,500
|
||||
To Securities Premium A/c |
750
|
||||
(150 shares of Rs 10 each reissued for Rs 15 per share fully paid–up) | |||||
Share Forfeiture A/c |
Dr.
|
300
|
|||
To Capital Reserve A/c |
300
|
||||
(Balance of Share Forfeiture Account transferred to Capital Reserve Account) |
Page No 8.123:
Question 68:
Commence Publications Ltd. issued 50,000 Equity Shares of â¹ 10 each at a premium of 10% payable as under:
On application | â¹ 2, | On first call | â¹ 2, |
On allotment | â¹ 5, | On final call | â¹ 2. |
The calls were made by the company and all the money was duly received except the allotment and call money on 500 shares. These shares were, therefore, forfeited and later reissued @ â¹ 9 per share as fully paid-up.
Pass necessary journal entries to record the above transactions.
Answer:
Issued and applied 50,000 equity shares at Rs 10 each at a premium Re 1
Application |
Rs |
2 |
|
Allotment |
Rs |
5 |
(4+1) |
First Call |
Rs |
2 |
|
Final Call |
Rs |
2 |
|
|
Rs |
11 |
(10+1) called-up |
Books of Commerce Publications Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,00,000 |
|
|
To Equity Share Application A/c |
|
|
1,00,000 |
|
|
(Share application received for 50,000 shares at Rs 2 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
1,00,000 |
|
|
To Equity Share capital A/c |
|
|
1,00,000 |
|
|
(Share application money transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
2,50,000 |
|
|
To Equity Share Capital A/c |
|
|
2,00,000 |
|
|
To Securities Premium A/c |
|
|
50,000 |
|
|
(Share allotment due on 50,000 shares at Rs 5 each including Re1 premium) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,47,500 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
2,500 |
|
|
To Equity Share Allotment |
|
|
2,50,000 |
|
|
(Share allotment at Rs 5 each, received on 49,500 shares and holders of 500 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Calls A/c |
Dr. |
|
1,00,000 |
|
|
To Equity Share capital |
|
|
1,00,000 |
|
|
(First call due on 50,000 shares at Rs 2 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
99,000 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
1,000 |
|
|
To Equity Share first call A/c |
|
|
1,00,000 |
|
|
(First call received on 49,500 shares and 500 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Shares capital A/c |
Dr. |
|
4,000 |
|
|
Securities Premium A/c |
Dr. |
|
500 |
|
|
To Share Forfeiture |
|
|
1,000 |
|
|
To Calls-in-Arrears A/c |
|
|
3,500 |
|
|
(500 shares forfeited for the non-payment of Rs 7 including Re 1 premium) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Final Call A/c |
Dr. |
|
99,000 |
|
|
To Equity Share Capital A/c |
|
|
99,000 |
|
|
(Share final call due 49,500 share at Rs 2 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
99,000 |
|
|
To Equity Share Final Call A/c |
|
|
99,000 |
|
|
(Share final call money received) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
4,500 |
|
|
Share Forfeiture A/c |
Dr. |
|
500 |
|
|
To Equity Share Capital A/c |
|
|
5,000 |
|
|
(500 shares of Rs10 each reissued for Rs 9 per share as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
500 |
|
|
To Capital Reserve A/c |
|
|
500 |
|
|
(Balance of Share Forfeiture after re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Share Forfeiture Credit |
1,000 |
Less: Share Forfeiture Debit |
500 |
Balance in Share Forfeiture (after re-issue) |
500 |
Capital Reserve = Balance in Share Forfeiture (after re-issue)
= Rs 500
Page No 8.123:
Question 69:
Gaurav applied for 5,000 shares of â¹ 10 each at a premium of 2.50 per share. But he was allotted only 2,500 shares on pro rata basis . After having paid â¹ 3 per share on application, he did not pay allotment money of â¹ 4.50 per share (including premium) and on his subsequent failure to pay the first call of â¹ 2 per share, his shares were forfeited. These shares were reissued at the rate of â¹ 8 per share credited as fully paid .
Pass journal entries to record the forfeiture and reissue of shares.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Equity Share Capital A/c (2,500×7) |
Dr. |
|
17,500 |
|
|
Security Premium Reserve A/c |
Dr. |
|
3,750 |
|
|
To Equity Share Allotment A/c |
|
|
|
3,750 |
|
To Equity Share First Call A/c (2,500×2) |
|
|
|
5,000 |
|
To Share Forfeited A/c |
|
|
|
12,500 |
|
( 2,500 shares forfeited) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (2,500×8) |
Dr. |
|
20,000 |
|
|
Share Forfeited A/c (2,500×2) |
Dr. |
|
5,000 |
|
|
To Equity Share Capital A/c (2,500×10) |
|
|
|
25,000 |
|
(Share reissued @Rs 8 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeited A/c (12,500 – 5,000) |
Dr. |
|
7,500 |
|
|
To Capital Reserve A/c |
|
|
|
7,500 |
|
( Profit on reissue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1: Calculation of Amount unpaid on Allotment
Amount received on application (5,000×3) = 15,000
Less: Amount adjusted on application (2,500×3) = 7,500
Excess amount received on application = 7,500
Amount due on allotment (2,500×4.5) = 11,250
Amount unpaid on allotment = 3,750 (11,250 – 7,500)
Note:
Rs 7,500 received on application will be transferred to allotment, but first of all we have to transfer such amount to Capital A/c and rest would be transferred to Securities Premium A/c. Capital on allotment is Rs 5,000 (2,500×2) that is fully received and balance amount of advance Rs 2,500 will be transferred to Securities Premium A/c. So, amount of premium unpaid is Rs 3,750 (2,500×2.5 –2,500).
Page No 8.123:
Question 70:
'Telecom Ltd.' issued 20,000 Equity Shares of â¹ 10 each at a premium of â¹ 5 per share, payable as: â¹ 7 (including premium) on application, â¹ 5 on allotment and the balance after three months of allotment. A shareholder to whom 200 shares were allotted failed to pay the allotment and call money and his shares were forfeited. 160 of the forfeited shares were reissued for â¹ 1,600.
Give necessary entries in company's Journal and the Balance Sheet.
Answer:
Issued and Applied 20,000 equity shares of â¹ 10 each at a premium of â¹ 5
Application |
â¹ |
7 |
(2+5) |
Allotment |
â¹ |
5 |
|
First and Final Call |
â¹ |
3 |
|
|
|
15 |
(10+5) per share |
Books of Telecom Ltd. |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
140,000 |
|
|
To Equity Share Application A/c |
|
|
140,000 |
|
|
(Share application money received for 20,000 shares at Rs 7 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
1,40,000 |
|
|
To Equity Share Capital A/c |
|
|
40,000 |
|
|
To Securities Premium A/c |
|
|
1,00,000 |
|
|
(Share application money of 20,000 shares transferred Share Capital at Rs25 per share and Securities Premium at Rs 5 per share) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
1,00,000 |
|
|
To Equity Share Capital A/c |
|
|
1,00,000 |
|
|
(Share allotment due on 20,000 shares at Rs 5 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
99,000 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
1,000 |
|
|
To Equity Share Allotment A/c |
|
|
1,00,000 |
|
|
(Share allotment received on 19,800 shares and a holder of 200 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First and Final call A/c |
Dr. |
|
60,000 |
|
|
To Equity Share Capital A/c |
|
|
60,000 |
|
|
(First and final call due on 20,000 shares at Rs 3 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
59,400 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
600 |
|
|
To Equity Share First and Final Call A/c |
|
|
60,000 |
|
|
(First and final call received on 19,800 shares and a holder of 200 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
2,000 |
|
|
To Share Forfeiture A/c (Rs 2 × 200 Shares) |
|
|
400 |
|
|
To Calls-in-Arrears A/c |
|
|
16,00 |
|
|
(200 shares of Rs 10 each forfeited for the non-payment amount due Rs 8 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,600 |
|
|
To Equity Share Capital A/c |
|
|
1,600 |
|
|
(160 shares of Rs 10 each re-issued for the sum of Rs 1,600) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
320 |
|
|
To Capital Reserve A/c |
|
|
320 |
|
|
(Balance in Share Forfeiture of 160 re-issued shares transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
A Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (â¹) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
1,99,680 |
b. Reserves and Surplus |
2 |
1,00,320 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
3,00,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
3,00,000 |
Total |
|
3,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (â¹) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
…… Equity Shares of Rs 10 each |
- |
|
|
Issued Share Capital |
|
|
|
20,000 Equity Shares of Rs 10 each |
2,00,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
19,960 Equity Shares of Rs 10 each |
1,99,600 |
|
|
Add: Shares Forfeited (40 shares × Rs 2) |
80 |
1,99,680 |
|
|||
2 |
Reserves and Surplus |
|
|
|
Securities Premium |
1,00,000 |
|
|
Capital Reserve |
320 |
1,00,320 |
|
|
|
|
3 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
3,00,000 |
|
|
|
|
Working Notes: 1. Share Forfeiture of Re-issued Shares
Share Forfeiture (at the time of forfeiture after deducting premium) |
Cr. |
2 |
(7 – 5) |
Less: Share Forfeiture (at the time of re-issue) |
Dr. |
NIL |
|
Balance in Share Forfeiture after re-issue |
Cr. |
2 |
per share |
Capital Reserve = Balance in Share Forfeiture after reissue (per share) × Number of Shares Re-issued = Rs 2 × 160 = Rs 320
2. Calculation of balance remaining in Share Forfeiture Account (to be shown in the Balance Sheet)
Share Forfeiture (at the time of forfeiture of 200 shares) |
= |
400 |
Debit |
Less: Share Forfeiture (at the time re-issue of 160 shares) |
= |
(320) |
Credit |
Balance in Share Forfeiture Account (for 40 shares which are not re-issued) |
= |
Rs 80 |
Debit |
Page No 8.123:
Question 71:
Kamal Ltd. was formed on 1st April, 2010 with an authorised capital of â¹ 2,00,000 , divided into 2,000 Equity Shares of â¹ 100 each. 1,000 shares were issued as fully paid to the vendors of building for payment of the purchase consideration. The remaining 1,000 shares were offered or public subscription at a premium of â¹ 5 per share payable as:
On application | â¹ 10 per share, |
On allotment | â¹ 25 per share(including premium), |
On first call | â¹ 40 per share, |
On final call | â¹ 30 per share. |
Applications were received for 900 shares which were duly allotted and the allotment money was received in full . At the time of the first call, a shareholder who held 100 shares failed to pay the first call money and his shares were forfeited. These shares were reissued @ â¹ 60 per share , â¹ 70 per share paid-up.
Final call has not been made.
You are required to
(i) give necessary journal entries to record the above transactions and
(ii) show how share capital would appear in the Balance Sheet of the company.
Answer:
Authorised Capital: 2,000 equity shares at Rs 100 each
Issued Capital:
1,000 equity shares at Rs 100 each to the vendor of the building
1,000 equity shares at Rs 100 each with a premium Rs 5 to the public
Applied by public: 900 equity shares
Payable by public as:
Application |
Rs |
10 |
|
Allotment |
Rs |
25 |
(20+5) |
First Call |
Rs |
40 |
|
Called-up |
|
75 |
(70+5) |
Final Call |
Rs |
30 |
|
|
Rs |
105 |
(100+5) |
Books of Kamal Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Building A/c |
Dr. |
|
1,00,000 |
|
|
To Vendor A/c |
|
|
1,00,000 |
|
|
(Building purchased from the vendor) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
1,00,000 |
|
|
To Equity Share Capital A/c |
|
|
1,00,000 |
|
|
(1,000 equity shares of Rs 100 each issued to the vendor of building) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
9,000 |
|
|
To Equity Share Application A/c |
|
|
9,000 |
|
|
(Share application money received for 900 shares at Rs 10 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
9,000 |
|
|
To Equity Share Capital |
|
|
9,000 |
|
|
(Share application money of 900 shares at Rs 10 each transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
22,500 |
|
|
To Securities Premium |
|
|
4,500 |
|
|
To Equity Share Capital A/c |
|
|
18,000 |
|
|
(Share allotment due on 900 shares at Rs 25 each including Rs 5 premium) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
22,500 |
|
|
To Equity Share Allotment A/c |
|
|
22,500 |
|
|
(Share allotment money received on 900 shares at Rs 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c |
Dr. |
|
36,000 |
|
|
To Equity Share Capital A/c |
|
|
36,000 |
|
|
(First call due on 900 shares at Rs 40 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
32,000 |
|
|
Calls-in-Arrears A/c |
|
4,000 |
|
|
|
To Equity Share First-call A/c |
|
|
36,000 |
|
|
(First call received on 800 shares and a holder of 100 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
7,000 |
|
|
To Share Forfeiture A/c |
|
|
3,000 |
|
|
To Calls-in-Arrears A/c |
|
|
4,000 |
|
|
(100 shares of Rs 100 each, Rs 70 called-up forfeited for the non-payment of Rs 40) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,000 |
|
|
Share Forfeiture A/c |
Dr. |
|
1,000 |
|
|
To Equity Share Capital A/c |
|
|
7,000 |
|
|
(100 shares of Rs 100 each, re-issued at Rs 60 per share as Rs 70 paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,000 |
|
|
To Capital Reserve A/c |
|
|
2,000 |
|
|
(Balance in Share Forfeiture the Account after re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act 2013, the Company's Balance Sheet is presented as follows.
Kamal Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
1,63,000 |
b. Reserves and Surplus |
2 |
6,500 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
1,69,500 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
a. Fixed Assets |
|
|
i. Tangible Assets |
3 |
1,00,000 |
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
4 |
69,500 |
Total |
|
1,69,500 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
2,000 Equity Shares of Rs 100 each |
2,00,000 |
|
|
Issued Share Capital |
|
|
|
2,000 Equity Shares of Rs 100 each |
2,00,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
1,000 Equity Shares of Rs 100 each(for consideration other than cash) |
1,00,000 |
|
|
900 Equity Shares of Rs 100 each, Rs 70 Called-up |
63,000 |
1,63,000 |
|
|
|
|
2 |
Reserves and Surplus |
|
|
Securities Premium |
4,500 |
|
|
Capital Reserve |
2,000 |
6,500 |
|
|
|||
3 |
Tangible Assets |
|
|
Building |
1,00,000 |
||
|
|||
4 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
69,500 |
|
|
|
|
Working Notes:
Share Forfeiture (at the time of forfeiture) |
3,000 |
Credit |
Less: Share Forfeiture (at the time of re-issue) |
1,000 |
Debit |
Balance in Share Forfeiture (after re-issue) |
2,000 |
Credit |
Capital Reserve = Balance in Share Forfeiture (after re-issue) = Rs 2,000
Page No 8.124:
Question 72:
Krishna & Co. Ltd. with an authorised capital of â¹ 2,00,000 divided into 20,000 Equity Shares of â¹ 10 each, issued the entire amount of the shares payable as:
â¹ 5 on application (including premium â¹ 2 per share),
â¹ 4 on allotment, and
â¹ 3 on call.
All share money is received in full with the exception of the allotment money on 200 shares and the call money on 500 shares (including the 200 shares on which the allotment money has not been paid).
The above 500 shares are duly forfeited and 400 of these( including the 200 shares on which allotment money has not been paid) are reissued at â¹ 7 per share payable by the purchaser as fully paid-up. Pass journal entries(including cash transactions) and show the balances in the Balance Sheet giving effect to the above transactions.
Answer:
Authorised capital 20,000 shares of 10 each
Issued and applied 20,000 shares of Rs 10 each at a premium Rs 2
Payable as:
Application |
= |
Rs 5 |
(3+2) |
Allotment |
= |
Rs 4 |
|
First and Final Call |
= |
Rs 3 |
|
|
|
Rs 12 |
(10+2) |
Books of Krishna & Co. Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,00,000 |
|
|
To Equity Share Application A/c |
|
|
1,00,000 |
|
|
(Share application money received for 20,000 shares at Rs 5 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
1,00,000 |
|
|
To Equity Share Capital A/c |
|
|
60,000 |
|
|
To Securities Premium A/c |
|
|
40,000 |
|
|
(Share application of 20,000 shares transferred to Shares Capital at Rs 3 per share and Securities Premium and Rs 2 per share) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
80,000 |
|
|
To Equity Share Capital A/c |
|
|
80,000 |
|
|
(Share allotment due on 20,000 shares at Rs 4 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
79,200 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
800 |
|
|
To Equity Share Allotment A/c |
|
|
80,000 |
|
|
(Share allotment received on 19,800 shares and holders of 200 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share first and final call A/c |
Dr. |
|
60,000 |
|
|
To Equity Share Capital A/c |
|
|
60,000 |
|
|
(First and Final call due on 20,000 shares at Rs 3 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
58,500 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
1,500 |
|
|
To Equity Share First And Final Call A/c |
|
|
60,000 |
|
|
(Share first and final call of Rs 3 each received on 19,500 shares and holders of 500 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
2,000 |
|
|
To Share Forfeiture A/c |
|
|
600 |
|
|
To Calls-in-Arrears A/c |
|
|
1,400 |
|
|
(200 shares of Rs 10 each forfeited for the non-payment of allotment Rs 4 and call Rs 7 per share) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
3,000 |
|
|
To Share Forfeiture A/c |
|
|
2,100 |
|
|
To Calls-in-Arrears A/c |
|
|
900 |
|
|
(300 shares of Rs 10 each forfeited for the non-payment of call money Rs 3 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,800 |
|
|
Share Forfeiture A/c |
Dr. |
|
1,200 |
|
|
To Share Capital |
|
|
4,000 |
|
|
(400 shares of Rs 10 each re-issued at Rs 7 per share as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
800 |
|
|
To Capital Reserve A/c |
|
|
800 |
|
|
(Balance in share forfeiture of 400 shares transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
Krishna & Co Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
1,99,700 |
b. Reserves and Surplus |
2 |
40,800 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
2,40,500 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
2,40,500 |
Total |
|
2,40,500 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
||
1 |
Share Capital |
|
||
|
Authorised Share Capital |
|
||
|
20,000 Equity Shares of Rs 10 each |
2,00,000 |
||
|
Issued Share Capital |
|
||
|
20,000 Equity Shares of Rs 10 each |
2,00,000 |
||
|
Subscribed, Called-up and Paid-up Share Capital |
|
||
|
19,900 Equity Shares of Rs 10 each |
1,99,000 |
||
|
Add: Shares Forfeited (100 shares × Rs 7) |
700 |
1,99,700 |
|
|
||||
2 |
Reserves and Surplus |
|
||
|
Securities Premium |
40,000 |
|
|
|
Capital Reserve |
800 |
40,800 |
|
|
|
|
||
3 |
Cash and Cash Equivalents |
|
||
|
Cash at Bank |
2,40,500 |
||
|
|
|
Working Notes:
1. |
Capital Reserve of 200 shares on which only application received |
||
|
Share Forfeiture Cr. |
3 |
per share (excluding premium) |
|
Share Forfeiture Dr. |
3 |
per share |
|
Balance of Share Forfeiture |
NIL |
|
2. |
Capital Reserve of 200 shares on which application and allotment received |
||
|
Share Forfeiture Cr. |
Rs 7 |
per share (excluding premium) |
|
Share Forfeiture Dr. |
Rs 3 |
per share |
|
Balance in Share Forfeiture |
Rs 4 |
per share |
Capital Reserve |
= |
200 Shares × Balance of Share Forfeiture (per share) |
|
= |
200 × 4 |
|
= |
Rs 800 |
Page No 8.124:
Question 73:
Midee Ltd. invited applications for issuing 27,000 shares of â¹ 100 each payable as follows:
â¹ 50per share on application;
â¹ 10per share on allotment; and
Balanceon First and Final call.
Applications were received for 40,000 shares. Full allotment was made to the applicants of 7,000 shares. The remaining applicants were allotted 20,000 shares on pro rata basis. Excess money received on applications was adjusted towards allotment and call.
Asha, holding 600 shares was belonged to the category of applicants to whom full allotment was made ,paid the call money at the time of allotment . Ankur, who belonged to the category of applicants to whom shares were allotted on pro rata basis did not pay anything after application on his 200 shares . Ankur's shares were forfeited after the First and Final call. These shares were later reissued at â¹ 105 per share as fully paid-up.
Pass necessary journal entries in the books of Midee Ltd . for the above transactions, by opening Calls-in-Arrears and Calls-in-Advance Accounts wherever necessary.
Answer:
Journal |
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(â¹)
|
Credit
Amount
(â¹)
|
|
Bank A/c (40,000 × 50) |
Dr.
|
20,00,000
|
|
||
To Equity Share Application A/c |
|
|
20,00,000
|
||
(Application money received) |
|
|
|
||
|
|
|
|||
Equity Share Application A/c |
Dr.
|
20,00,000
|
|
||
To Equity Share Capital A/c(27,000 × 50) |
|
|
13,50,000
|
||
To Calls in Advance A/c(13,000 × 50) |
|
|
6,50,000
|
||
(Application money transferred) |
|
|
|
||
|
|
|
|||
Equity Share Allotment A/c (27,000 × 10) |
Dr.
|
2,70,000
|
|
||
To Equity Share Capital A/c |
|
|
2,70,000
|
||
(Allotment money due) |
|
|
|
||
|
|
|
|||
Bank A/c |
Dr.
|
94,000
|
|
||
Calls in Advance A/c |
|
2,00,000
|
|
||
To Equity Share Allotment A/c |
|
|
2,70,000
|
||
To Calls–in–Advance A/c |
|
|
24,000
|
||
(Allotment money received) |
|
|
|
||
|
|
|
|||
Equity Share First Call A/c (27,000 × 40) |
Dr.
|
10,80,000
|
|
||
To Equity Share Capital A/c |
|
|
10,80,000
|
||
(Call money due) |
|
|
|
||
|
|
|
|||
Bank A/c |
Dr.
|
6,26,500
|
|
||
Calls–in–Advance A/c |
Dr.
|
4,50,000
|
|
||
Calls–in–Arrears A/c |
Dr.
|
3,500
|
|
||
To Equity Share First Call A/c |
|
|
10,80,000
|
||
(Call money received) |
|
|
|
||
|
|
|
|||
Equity Share Capital A/c |
Dr.
|
20,000
|
|
||
To Equity Share First Call A/c |
|
|
3,500
|
||
To Equity Share Forfeiture A/c |
|
|
16,500
|
||
(200 shares forfeited) |
|
|
|
||
|
|
|
|||
Bank A/c (200 × 105) |
Dr.
|
21,000
|
|
||
To Equity Share Capital A/c |
|
|
20,000
|
||
To Securities Premium A/c |
|
|
1,000
|
||
(Forfeited shares re–issued at Rs 105 per share) |
|
|
|
||
|
|
|
|||
Equity Share Forfeiture A/c |
Dr.
|
16,500
|
|
||
To Capital Reserve A/c |
|
|
16,500
|
||
(Profit on re–issue transferred) |
|
|
|
Page No 8.124:
Question 74:
VXN Ltd. invited applications for issuing 50,000 equity shares of â¹ 10 each at a premium of â¹ 8 per share . The amount was payable as follows:
On Application | â¹ 4 per share (Including â¹ 2 premium); | |
On Allotment | â¹ 6 per share (Including â¹ 3 premium); | |
On First Call | â¹ 5 per share (Including â¹ 1 premium); and | |
On Second and Final Call | Balance Amount |
The issue was fully subscribed . Gopal, a shareholder holding 200 shares, did not pay the allotment money and Madhav, a holder of 400 shares, paid his entire share money along with the allotment money. Gopal's shares were immediately forfeited after allotment . Afterwards, the first call was made. Krishna, a holder of 100 shares , failed to pay the first call money and Girdhar, a holder of 300 shares, paid the second call money also along with the first call . Krishna's shares were forfeited immediately after the first call. Second and final call was made afterwards and was duly received . All the forfeited shares were reissued at â¹ 9 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of the company.
Answer:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount (â¹) |
Credit
Amount (â¹) |
|
Bank A/c (50,000 × 4) |
Dr.
|
2,00,000
|
|
||
To Equity Share Application A/c |
|
|
2,00,000
|
||
(Application money received on 50,000 shares) |
|
|
|
||
|
|
|
|||
Equity Share Application A/c |
Dr.
|
2,00,000
|
|
||
To Equity Share Capital A/c |
|
|
1,00,000
|
||
To Securities Premium Reserve A/c |
|
|
1,00,000
|
||
(Application money transferred to Share Capital) |
|
|
|
||
|
|
|
|||
Equity Share Allotment A/c (50,000 × 6) |
Dr.
|
3,00,000
|
|
||
To Equity Share Capital A/c |
|
|
1,50,000
|
||
To Securities Premium Reserve A/c |
|
|
1,50,000
|
||
(Allotment money due on 50,000 shares) |
|
|
|
||
|
|
|
|||
Bank A/c (49,800 × 6) + (400 × 8) |
Dr.
|
3,02,000
|
|
||
To Equity Share Allotment A/c (49,800 × 5) |
|
|
2,98,800
|
||
To Calls–in–Advance A/c (400 × 8) |
|
|
3,200
|
||
(Allotment money received) |
|
|
|
||
|
|
|
|||
Equity Share Capital A/c (200 × 5) |
Dr.
|
1,000
|
|
||
Securities Premium Reserve A/c (200 × 3) |
Dr.
|
600
|
|
||
To Equity Share Allotment A/c (200 × 6) |
|
|
1,200
|
||
To Equity Share Forfeiture A/c (200 × 2) |
|
|
400
|
||
(200 shares forfeited for non–payment of allotment money including premium of Rs 3) |
|
|
|
||
|
|
|
|||
Equity Share First Call A/c (49,800 × 5) |
Dr.
|
2,49,000
|
|
||
To Equity Share Capital A/c |
|
|
1,99,200
|
||
To Securities Premium Reserve A/c |
|
|
49,800
|
||
(Call money due on 49,800 shares) |
|
|
|
||
|
|
|
|||
Bank A/c (49,700 × 5) − 2,000 + 900 |
Dr.
|
2,47,400
|
|
||
Calls–in–Advance A/c (400 × 5) |
Dr.
|
2,000
|
|
||
To Calls–in–Advance A/c (300 × 3) |
|
|
900
|
||
To Equity Share First Call A/c |
|
|
2,48,500
|
||
(Call money received) |
|
|
|
||
|
|
|
|||
Equity Share Capital A/c (100 × 9) |
Dr.
|
900
|
|
||
Securities Premium Reserve A/c (100 × 1) |
|
100
|
|
||
To Equity Share First Call A/c (100 × 5) |
|
|
500
|
||
To Equity Share Forfeiture A/c (100 × 5) |
|
|
500
|
||
(100 shares forfeited for non-payment of call money) |
|
|
|
||
|
|
|
|||
Equity Share Second and Final Call A/c (49,700 × 3) |
Dr.
|
1,49,100
|
|
||
To Equity Share Capital A/c |
|
|
49,700
|
||
To Securities Premium A/c |
99,400
|
||||
(Call money due on 49,700 shares) |
|
|
|
||
|
|
|
|||
Bank A/c |
Dr.
|
1,47,000
|
|
||
Calls-in-Advance A/c (1,200 + 900) |
|
2,100
|
|
||
To Equity Share Second and Final Call A/c |
|
|
1,49,100
|
||
(Call money received on shares) |
|
|
|
||
|
|
|
|||
Bank A/c (300 × 9) |
Dr.
|
2,700
|
|
||
Equity Share Forfeiture A/c |
|
300
|
|
||
To Equity Share Capital A/c |
|
|
3,000
|
||
(300 shares re–issued at Rs 9 per share) |
|
|
|
||
|
|
|
|||
Equity Share Forfeiture A/c (400 + 500 − 300) |
Dr.
|
600
|
|
||
To Capital Reserve A/c |
|
|
600
|
||
(Profit on re-issue transferred to Capital Reserve) |
|
|
|
||
|
Page No 8.125:
Question 75:
Sukanya Ltd. invited applications for issuing 1,00,000 equity shares of â¹ 10 each. The shares were issued at a premium of â¹ 20 per share. The amount was payable as follows:
On Application and Allotment | â¹ 14 per share (including premium of â¹ 10), | |
On First Call | â¹ 8 per share (including premium of â¹ 5), | |
On Final Call | â¹ 8 per share (including premium of â¹ 5). |
Applications for 96,000 shares were received. Rohit , a shareholder holding 7,000 shares, failed to pay both the calls and Namit , a holder of 5,000 shares , did not pay the final call.
Shares of Rohit and Namit were forfeited . Of the forfeited shares 8,000 shares including all the shares of Rohit were reissued to Reena at â¹ 8 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Sukanya Ltd.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Bank A/c (96,000×14) |
Dr. |
|
13,44,000 |
|
|
To Equity Share Application and Allotment A/c |
|
|
|
13,44,000 |
|
( Application money received) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application and Allotment A/c |
Dr. |
|
13,44,000 |
|
|
To Equity Share Capital A/c (96,000×4) |
|
|
|
3,84,000 |
|
To Security Premium Reserve A/c (96,000×10) |
|
|
|
9,60,000 |
|
(Application money adjusted to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c (96,000×8) |
Dr. |
|
7,68,000 |
|
|
To Equity Share Capital A/c (96,000×3) |
|
|
|
2,88,000 |
|
To Security Premium Reserve A/c (96,000×5) |
|
|
|
4,80,000 |
|
(First call money due) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (7,68,000 – 56,000) |
Dr. |
|
7,12,000 |
|
|
To Equity Share First Call A/c |
|
|
|
7,12,000 |
|
(First call money received) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Second Call A/c (96,000×8) |
Dr. |
|
7,68,000 |
|
|
To Equity Share Capital A/c (96,000×3) |
|
|
|
2,88,000 |
|
To Security Premium Reserve A/c (96,000×5) |
|
|
|
4,80,000 |
|
(Second call money due) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (7,68,000 – 56,000 – 40,000) |
Dr. |
|
6,72,000 |
|
|
To Equity Share Second Call A/c |
|
|
|
6,72,000 |
|
(Second call money received) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
1,20,000 |
|
|
Security Premium Reserve A/c (7,000×10 + 5,000×5) |
Dr. |
|
95,000 |
|
|
To Equity Share First Call A/c |
|
|
|
56,000 |
|
To Equity Share Second Call A/c |
|
|
|
96,000 |
|
To Shares Forfeited A/c (7,000×4 + 5,000×7) |
|
|
|
63,000 |
|
(Shares Forfeited) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (8,000×8) |
Dr. |
|
64,000 |
|
|
Shares Forfeited A/c (8,000×2) |
Dr. |
|
16,000 |
|
|
To Equity Share Capital A/c |
|
|
|
80,000 |
|
(Shares Reissued) |
|
|
|
|
|
|
|
|
|
|
|
Shares Forfeited A/c |
Dr. |
|
19,000 |
|
|
To Capital Reserve A/c |
|
|
|
19,000 |
|
(Profit on Reissue transferred to Capital Reserve A/c) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Amount transferred to Capital Reserve
Amount forfeited on reissued shares of Rohit = Rs 28,000
Amount forfeited on reissued shares of Namit
Total amount forfeited on reissued shares = 28,000 + 7,000 = Rs 35,000
Amount transferred to Capital Reserve = 35,000 – 16,000 = Rs 19,000
Page No 8.125:
Question 76:
Alfa Ltd. invited applications for issuing 75,000 equity shares of â¹ 10 each. The amount was payable as follows:
On application and allotment | â¹ 4 per share , | |
On first Call | â¹ 3 per share, | |
On second and final Call | balance. |
Applications for 1,00,000 shares were received. Shares were allotted to all the applicants on pro rata basis and excess money received with applications was transferred towards sums due on first call. Vibha who was allotted 750 shares failed to pay the first call . Her shares were immediately forfeited . Afterwards the second call was made. The amount due on second call was also received except on 1,000 shares applied by Monika . Her shares were also forfeited. All the forefited shares were reissued to Mohit for â¹9,000 as fully paid-up.
Pass necessary journal entries in the Books of Alfa Ltd . for the above transactions.
Answer:
In the books of Alfa Ltd. Journal Entry |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
4,00,000 |
|
|
To Equity Share Application and Allotment A/c |
|
|
|
4,00,000 |
|
(Application money received on 1,00,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application and Allotment A/c |
Dr. |
|
4,00,000 |
|
|
To Equity Share Capital A/c |
|
|
|
3,00,000 |
|
To Equity Share First Call A/c |
|
|
|
1,00,000 |
|
(Application money transferred to share capital account and excess money is adjusted in first call account) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c |
Dr. |
|
2,25,000 |
|
|
To Equity Share Capital A/c |
|
|
|
2,25,000 |
|
(Amount due on first call) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (2,25,000 – 1,00,000 – 1,250) |
Dr. |
|
1,23,750 |
|
|
To Equity Share First Call A/c |
|
|
|
1,23,750 |
|
(Amount received on first call) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
5,250 |
|
|
To Equity Share Forfeiture A/c |
|
|
4,000 |
|
|
To Equity Share First Call A/c |
|
|
|
1,250 |
|
(Vibha’s shares were forfeited) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Second and Final Call A/c |
Dr. |
|
2,22,750 |
|
|
To Equity Share Capital A/c |
|
|
|
2,22,750 |
|
(Amount due on second and final call after forfeiting Vibha’s shares) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (2,22,750 – 2,250) |
Dr. |
|
2,20,500 |
|
|
To Equity Share Second and Final Call A/c |
|
|
|
2,20,500 |
|
(Amount received on second and final call) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
7,500 |
|
|
To Equity Share Forfeiture A/c |
|
|
|
5,250 |
|
To Equity Share Second and Final Call A/c |
|
|
|
2,250 |
|
(Monika’s shares were forfeited) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
9,000 |
|
|
Equity Share Forfeiture A/c |
Dr. |
|
6,000 |
|
|
To Equity Share Capital A/c |
|
|
|
15,000 |
|
(Forfeited shares were reissued for Rs 9,000 as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Forfeiture A/c |
Dr. |
|
3,250 |
|
|
To Capital Reserve A/c |
|
|
|
3,250 |
|
(Excess amount on forfeiture is transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of Amount not received on First Call
WN2: Calculation of Amount not received on Second Call
Page No 8.125:
Question 77:
Himalaya Company Limited issued for public subscription 1,20,000 equity shares of â¹ 10 each at a premium for â¹ 2 per share payable as under:
With Application | â¹ 3 per share, | |
On allotment (including premium) | â¹ 5 per share, | |
On First call | â¹ 2 per share | |
On Second and Final call | â¹ 2 per share. |
Applications were received for 1,60,000 shares . Allotment was made on pro rata basis . Excess money on application were adjusted against the amount due on allotment.
Rohan to whom 4,800 shares were allotted failed to pay for the two calls. These shares were subsequently forfeited after the second call was made . All the shares forfeited were reissued to Teena as fully paid at â¹ 7 per share.
Record journal entries and show the transactions relating to share capital in the company's Balance Sheet.
Answer:
Books of Himalaya Company Ltd.
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(â¹)
|
Credit
Amount
(â¹)
|
|
Bank A/c |
Dr.
|
4,80,000
|
|||
To Share Application A/c |
4,80,000
|
||||
(Share Application money received for 1,60,000 shares @ Rs 3 per share) | |||||
Share Application A/c |
Dr.
|
4,80,000
|
|||
To Equity Share Capital A/c |
3,60,000
|
||||
To Share Allotment A/c |
1,20,000
|
||||
(Share Application for 1,20,000 shares @ Rs 3 per share transferred to Share Capital Account and remaining amount adjusted to Allotment) | |||||
Share Allotment A/c |
Dr.
|
6,00,000
|
|||
To Equity Share Capital A/c |
3,60,000
|
||||
To Securities Premium |
2,40,000
|
||||
(Share Allotment due on 1,20,000 shares @ Rs 5 per share including Rs 2 Securities Premium) | |||||
Bank A/c |
Dr.
|
4,80,000
|
|||
To Share Allotment A/c |
4,80,000
|
||||
(Share allotment for 1,20,000 shares @ Rs 5 per share received) | |||||
Share First Call A/c |
Dr.
|
2,40,000
|
|||
To Equity Share Capital A/c |
2,40,000
|
||||
(Share First Call due on 1,20,000 shares @ Rs 2 per share) | |||||
Bank A/c |
Dr.
|
2,30,400
|
|||
To Share First Call A/c |
2,30,400
|
||||
(Share First Call received on 1,15,200 shares @ Rs 2 per share and 4,800 shares failed to pay) | |||||
Share Final Call A/c |
Dr.
|
2,40,000
|
|||
To Equity Share Capital A/c |
2,40,000
|
||||
(Share Final call due on 1,20,000 shares @ Rs 2 per share) | |||||
Bank A/c |
Dr.
|
2,30,400
|
|||
To Share Final Call A/c |
2,30,400
|
||||
(Share Final Call received on 1,15,200 shares @ Rs 2 per share and 4,800 shares failed to pay) | |||||
Equity Share Capital A/c (4,800×10) |
Dr.
|
48,000
|
|||
To Share First Call A/c (4,800×2) |
9,600
|
||||
To Share Final Call A/c (4,800×2) |
9,600
|
||||
To Share Forfeiture A/c (4,800×6) |
28,800
|
||||
(4,800 shares forfeited for the non–payment of First Call and Final Call) | |||||
Bank A/c |
Dr.
|
33,600
|
|||
Share Forfeiture A/c |
Dr.
|
14,400
|
|||
To Equity Share Capital |
48,000
|
||||
(4,800 shares reissued @ Rs 7 per share, fully paid–up) | |||||
Share Forfeiture A/c |
Dr.
|
14,400
|
|||
To Capital Reserve A/c |
14,400
|
||||
(Share forfeiture balance of 4,800 shares transferred to Capital Reserve Account) | |||||
Himalaya Company Limited
|
||
Balance Sheet
|
||
Particulars
|
Note No.
|
Amount
(â¹)
|
I. Equity and Liabilities | ||
1. Shareholders’ Funds
|
||
a. Share Capital
|
1
|
12,00,000
|
b. Reserves and Surplus
|
2
|
2,54,400
|
2. Non-Current Liabilities
|
||
3. Current Liabilities
|
||
Total
|
14,54,400
|
|
II. Assets | ||
1. Non-Current Assets
|
||
2. Current Assets
|
||
a. Cash and Cash Equivalents
|
3
|
14,54,400
|
Total
|
14,54,400
|
|
NOTES TO ACCOUNTS
Note No.
|
Particulars
|
Amount
(â¹)
|
|
1
|
Share Capital | ||
Authorised Share Capital | |||
…….. shares of Rs 10 each |
–
|
||
Issued Share Capital | |||
1,20,000 shares of Rs 10 each |
12,00,000
|
||
Subscribed, Called-up and Paid-up Share Capital | |||
1,20,000 shares of Rs 10 each |
12,00,000
|
||
2
|
Reserves and Surplus | ||
Securities Premium |
2,40,000
|
||
Capital Reserve |
14,400
|
2,54,400
|
|
3
|
Cash and Cash Equivalents | ||
Cash at Bank |
14,54,400
|
||
Page No 8.125:
Question 78:
Amrit Ltd. issued 50,000 shares of â¹ 10 each at a premium of â¹ 2 per share payable as â¹ 3 on application, â¹ 4 on allotment (including premium) , â¹ 2 on first call and the remaining on second call.
Applications were received for 75,000 shares and pro rata allotment was made to all the applicants.
All moneys due were received except allotment and first call from Sonu who applied for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for â¹ 9,600. Final call was not made . Pass necessary Journal entries.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,25,000 |
|
|
To Share Application A/c |
|
|
|
2,25,000 |
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
2,25,000 |
|
|
To Share Capital A/c |
|
|
|
1,50,000 |
|
To Share Allotment A/c |
|
|
|
75,000 |
|
(Application money adjusted on allotment) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
2,00,000 |
|
|
To Share Capital A/c |
|
|
|
1,00,000 |
|
To Securities Premium A/c |
|
|
|
1,00,000 |
|
(Allotment money due on 50,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,23,000 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
2,000 |
|
|
To Share Allotment A/c |
|
|
|
1,25,000 |
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
1,00,000 |
|
|
To Share Capital A/c |
|
|
|
1,00,000 |
|
(First call money due on 50,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
98,400 |
|
|
Calls-in-Arrears A/c |
Dr. |
|
1,600 |
|
|
To Share First Call A/c |
|
|
|
1,00,000 |
|
(Call money received) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
5,600 |
|
|
Securities Premium A/c |
Dr. |
|
1,600 |
|
|
To Calls-in-Arrears A/c |
|
|
|
3,600 |
|
To Share Forfeiture A/c |
|
|
|
3,600 |
|
(800 shares forfeited for non-payment of allotment and call money) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
9,600 |
|
|
To Share Capital A/c |
|
|
|
5,600 |
|
To Securities Premium A/c |
|
|
|
4,000 |
|
(Shares reissued at a premium) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
3,600 |
|
|
To Capital Reserve A/c |
|
|
|
3,600 |
|
(Profit on reissue transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
WN1 Calculation of No. of Shares Allotted to Sonu
WN2 Calculation of Amount Received on Allotment
Page No 8.126:
Question 79:
Dogra Ltd. had an authorised capital of â¹ 1,00,00,000 divided into Equity Shares of â¹ 100 each. The company offered 84,000 shares to the public at premium.
The amount was payable as follow:
On Application | â¹ 30 per share, | |
On Allotment | â¹ 40 per share(including premium), | |
On First and Final call | â¹ 50 per share. |
Applications were received for 80,000 shares.
All sums were duly received except the following:
Lakhan, a holder of 200 shares did not pay allotment and call money.
Paras, a holder of 400 shares did not pay call money.
The company, forfeited the shares of Lakhan and Paras. Subsequently the forfeited shares were reissued for â¹ 80 per share as fully paid-up . Show the entries for the above transactions in the Cash Book and journal of the company
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
Equity Share Application A/c (80,00030) |
Dr. |
|
24,00,000 |
|
|
To Equity Share Capital A/c |
|
|
|
24,00,000 |
|
(Application money transferred to share capital) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c (80,00040) |
Dr. |
|
32,00,000 |
|
|
To Equity Share Capital A/c (80,00020) |
|
|
|
16,00,000 |
|
To Securities Premium Reserve A/c (80,00020) |
|
|
|
16,00,000 |
|
(Allotment money due) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First and Final Call A/c (80,00050) |
Dr. |
|
40,00,000 |
|
|
To Equity Share Capital A/c |
|
|
|
40,00,000 |
|
(First call money due) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (600100) |
Dr. |
|
60,000 |
|
|
Securities Premium Reserve A/c (20020) |
Dr. |
|
4,000 |
|
|
To Equity Share Allotment A/c (20040) |
|
|
|
8,000 |
|
To Equity Share First and Final Call (60050) |
|
|
|
30,000 |
|
To Equity Share Forfeiture A/c (20030 + 40050) |
|
|
|
26,000 |
|
(600 shares forfeited for non-payment of allotment and call money) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Forfeiture A/c (60020) |
Dr. |
|
12,000 |
|
|
To Equity Share Capital A/c |
|
|
|
12,000 |
|
(600 shares reissued) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Forfeiture A/c Dr. |
|
14,000 |
|
|
|
To Capital Reserve A/c |
|
|
14,000 |
|
|
(Profit on reissue transferred to capital reserve) |
|
|
|
Cash Book |
|||||||
Dr. |
Cr. |
||||||
Date |
Particulars |
L.F. |
Amount (Rs) |
Date |
Particulars |
L.F. |
Amount (Rs) |
Equity Share Application A/c (80,00030) |
|
24,00,000 |
Balance c/d |
|
96,10,000 |
||
|
Equity Share Allotment A/c (79,80040) |
|
31,92,000 |
|
|
|
|
|
Equity Share First Call A/c (79,40050) |
|
39,70,000 |
|
|
|
|
|
Equity Share Capital A/c (60080) |
|
48,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
96,10,000 |
|
|
|
96,10,000 |
|
|
|
|
|
|
|
|
Page No 8.126:
Question 80:
Jeevan Dhara Ltd. invited applications for issuing 1,20,000 equity shares of â¹ 10 each at a premium of â¹ 2 per share. The amount was payable as follows:
On application | â¹ 2 per share, | |
On allotment | â¹ 5 per share(including premium), | |
On first and final call | Balance. |
Applications for 1,50,000 shares were received . Shares were allotted to all the applicants on pro rata basis. Excess money received on applications was adjusted towards sums due on allotment . All calls were made. Manu who had applied for 3,000 shares failed to pay the amount due on allotment and first and final call Madhur who was allotted 2,400 shares failed to pay the first and final call . Shares of both Manu and Madhur were forfeited . The forfeited shares were reissued at â¹ 9 per share as fully paid-up .
Pass necessary journal entries for the above transactions in the books of Jeevan Dhara Ltd.
Answer:
In the books of Jeevan Dhara Ltd. Journal Entry |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
3,00,000 |
|
|
To Equity Share Application A/c |
|
|
|
3,00,000 |
|
(Application money received on 1,50,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
3,00,000 |
|
|
To Equity Share Capital A/c |
|
|
|
2,40,000 |
|
To Equity Share Allotment A/c |
|
|
|
60,000 |
|
(Amount of application transferred to Share Capital and excess money is adjusted towards allotment) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
6,00,000 |
|
|
To Equity Share Capital A/c |
|
|
|
3,60,000 |
|
To Securities Premium A/c |
|
|
|
2,40,000 |
|
(Amount due on allotment) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
5,29,200 |
|
|
To Equity Share Allotment A/c |
|
|
|
5,29,200 |
|
(Amount received on share allotment) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First and Final Call A/c |
Dr. |
|
6,00,000 |
|
|
To Equity Share Capital A/c |
|
|
|
6,00,000 |
|
(Amount due on first and final call) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
5,76,000 |
|
|
To Equity Share First and Final Call A/c |
|
|
|
5,76,000 |
|
(Amount received on first and final call) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
48,000 |
|
|
Securities Premium A/c |
Dr. |
|
4,800 |
|
|
To Equity Share Forfeiture A/c |
|
|
18,000 |
|
|
To Equity Share Allotment A/c |
|
|
|
10,800 |
|
To Equity Share First and Final Call A/c |
|
|
|
24,000 |
|
(Shares of Manu and Madhur were forfeited) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
43,200 |
|
|
Equity Share Forfeiture A/c |
Dr. |
|
4,800 |
|
|
To Equity Share Capital A/c |
|
|
|
48,000 |
|
(Forfeited shares were reissued for Rs 9 as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Forfeiture A/c |
Dr. |
|
13,200 |
|
|
To Capital Reserve A/c |
|
|
|
13,200 |
|
(Excess amount on forfeiture is transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of Amount not received on Allotment and First and Final Call
WN2: Calculation of amount not received from Madhur
Page No 8.126:
Question 81:
JJK Ltd. invited applications for issuing 50,000 equity shares of â¹ 10 each at par. The amount was payable as follows:
On Application | â¹ 2 per share, | |
On Allotment | â¹ 4 per share; and | |
On First and Final call | Balance Amount. |
The issue was oversubscribed three times. Applications for 30% shares were rejected and money refunded .Allotment was made to the remaining applicants as follows:
Category | No . of Shares Applied | No. of Shares Allotted |
I | 80,000 | 40,000 |
II | 25,000 | 10,000 |
Excess money paid by the applicants who were allotted shares was adjusted towards sums due on allotment .
Deepak, a shareholder belonging to Category I , who had applied for 1,000 shares ,failed to pay the allotment money. Raju, a shareholder holding 100 shares, also failed to pay the allotment money. Raju belonged to Category II. Shares of both Deepak and Raju were forfeited immediately after allotment . Afterwards, first and final call was made and was duly received . The forfeited shares of Deepak and Raju were reissued at â¹11 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of company.
Answer:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(â¹)
|
Credit
Amount
(â¹)
|
|
Bank A/c (1,50,000 × 2) |
Dr.
|
3,00,000
|
|
||
To Share Application A/c |
|
|
3,00,000
|
||
(Application money received on 1,50,000 shares) |
|
|
|
||
|
|
|
|||
Share Application A/c |
Dr.
|
3,00,000
|
|
||
To Share Capital A/c |
|
|
1,00,000
|
||
To Share Allotment A/c |
|
|
1,10,000
|
||
To Bank A/c |
|
90,000
|
|||
(Application money transferred to Share Capital) |
|
|
|
||
|
|
|
|||
Share Allotment A/c (50,000 × 4) |
|
2,00,000
|
|
||
To Share Capital A/c |
|
|
2,00,000
|
||
(Allotment money due on 50,000 shares) |
|
|
|
||
|
|
|
|||
Bank A/c |
Dr.
|
88,900
|
|
||
To Share Allotment A/c (WN2) |
|
|
88,900
|
||
(Allotment money received) |
|
|
|
||
|
|
|
|||
Share Capital A/c (600 × 6) |
Dr.
|
3,600
|
|||
To Share Allotment A/c (1,000 + 100) |
|
1,100
|
|||
To Share Forfeiture A/c (2,000 + 500) |
|
2,500
|
|||
(600 shares forfeited for non–payment of allotment money) |
|
||||
Share First and Final Call A/c |
Dr.
|
1,97,600
|
|||
To Share Capital A/c |
|
1,97,600
|
|||
(Call money due on 49,400 shares) |
|
||||
|
|
|
|||
Bank A/c |
Dr.
|
1,97,600
|
|
||
To Share First and Final Call A/c |
|
|
1,97,600
|
||
(Call money received) |
|
|
|
||
|
|
|
|||
Bank A/c (600 × 11) |
Dr.
|
6,600
|
|
||
To Share Capital A/c |
|
|
6,000
|
||
To Security Premium Reserve A/c |
|
|
600
|
||
(600 shares re–issued at Rs 11 per share) |
|
|
|
||
|
|
|
|||
Share Forfeiture A/c |
Dr.
|
2,500
|
|
||
To Capital Reserve A/c |
|
|
2,500
|
||
(Profit on re–issue transferred to Capital Reserve) |
|
|
|
||
|
|
Working Notes:
WN1:Computation Table
Categories
|
Shares Applied
|
Shares Allotted
|
Money received on Application
@ Rs 2 each
|
Money transferred to Share Capital
@ Rs 2 each
|
Excess Application Money
|
Amount adjusted on Allotment
|
Money refunded
|
I
|
80,000
|
40,000
|
1,60,000
|
80,000
|
80,000
|
80,000
|
–
|
II
|
25,000
|
10,000
|
50,000
|
20,000
|
30,000
|
30,000
|
–
|
III
|
45,000
|
–
|
90,000
|
–
|
–
|
–
|
90,000
|
|
1,50,000
|
50,000
|
3,00,000
|
1,00,000
|
1,10,000
|
1,10,000
|
90,000
|
|
|
|
|
|
|
|
|
WN2:Calculation of Amount Received on Allotment
Amount Due on Allotment |
2,00,000
|
Less: Excess Received |
1,10,000
|
Balance to be Received |
90,000
|
Less: Amount not paid by Deepak |
(1,000)
|
Less: Amount not paid by Raju |
(100)
|
Amount received on Allotment |
88,900
|
WN3: Calculation of Shares Applied/Allotted
Amount not paid by Deepak on Allotment | |
Amount received on Application |
2,000
|
Less: Transferred to Share Capital |
(1,000)
|
Excess received on Application |
1,000
|
Amount due on allotment |
2,000
|
Less: Excess adjustment |
(1,000)
|
Amount unpaid by Deepak |
1,000
|
Amount not paid by Raju on Allotment | |
Amount received on Application |
500
|
Less: Transferred to Share Capital |
(200)
|
Excess received on Application |
300
|
Amount due on allotment |
400
|
Less: Excess adjustment |
(300)
|
Amount unpaid by Raju |
100
|
Page No 8.127:
Question 82:
XYZ Ltd . is registered with an authorised capital of â¹ 2,00,000 divided into 2,000 shares of â¹ 100 each of which , 1,000 shares were offered for public subscription at a premium of â¹ 5 per share , payable as:
On application | â¹ 10 per share, | |
On allotment | â¹ 25 per share (including premium), | |
On first call | â¹ 40 per share | |
On final call | â¹ 30 per share |
Applications were received for 1,800 shares, of which applications for 300 shares were rejected outright; the rest of the application were allotted 1,000 shares on pro rata basis. Excess application money was transferred to allotment.
All the money was duly received except from Sundar , holder of 100 shares, who failed to pay allotment and first call money. His shares were later forfeited and reissued to Shyam at â¹ 60 per share â¹ 70 paid-up. Final call has not been made.
Pass necessary Journal entries and prepare Cash Book in the books of XYZ Limited.
Answer:
Authorised capital 2,000 shares of Rs 100 each.
Issued 1,000 shares of Rs 100 each at premium of Rs 5
Applied 1,800 shares
Allotment made as: |
|
Amount payable per shares as: |
|
|||
Applied |
|
Allotted |
|
Application |
Rs 10 |
|
1,500 |
|
1,000 |
|
Allotment |
Rs 25 |
(20 + 5) |
300 |
|
NIL |
|
First Call |
Rs 40 |
|
|
|
|
|
|
Rs 75 |
Called-up |
|
|
|
|
Final Call |
Rs 30 |
|
1,800 |
|
1,000 |
|
|
Rs 105 |
|
Books of XYZ Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
15,000 |
|
|
To Share Capital A/c |
|
|
10,000 |
|
|
To Share Allotment A/c |
|
|
5,000 |
|
|
(Share application of 1,000 shares transferred to Share Capital, Rs 5,000 adjusted on allotment) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
25,000 |
|
|
To Share Capital A/c |
|
|
20,000 |
|
|
To Securities Premium A/c |
|
|
5,000 |
|
|
(Share allotment due on 1,000 shares at Rs 25 each including Rs 5 premium) |
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
40,000 |
|
|
To Share Capital A/c |
|
|
40,000 |
|
|
(First call due on 1,000 shares at Rs 40 each) |
|
|
|
|
|
|
|
|
|
|
|
Securities Premium A/c |
Dr. |
|
500 |
|
|
Share Capital A/c |
Dr. |
|
7,000 |
|
|
To Share Forfeiture A/c |
|
|
1,500 |
|
|
To Share Allotment A/c |
|
|
2,000 |
|
|
To Share First Call A/c |
|
|
4,000 |
|
|
(100 shares of Rs 100 each Rs 70 called–up, forfeited for the non-payment of allotment and first call) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
1,000 |
|
|
To Share Capital A/c |
|
|
1,000 |
|
|
(100 shares of Rs 100 each re-issued at Rs 60 per share, Rs 70 paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
500 |
|
|
To Capital Reserve A/c |
|
|
500 |
|
|
(Balance in Share Forfeiture after re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Cash Book |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
Bank Rs |
Date |
Particulars |
Bank Rs |
||
|
|
|
|
|
|
||
|
Share Application |
18,000 |
|
Share Application |
3,000 |
||
|
Share Allotment |
18,000 |
|
|
|
||
|
Share First Call |
36,000 |
|
|
|
||
|
Share Capital |
6,000 |
|
Balance c/d |
75,000 |
||
|
|
78,000 |
|
|
78,000 |
||
|
|
|
|
|
|
Working Notes:
Number of share applied by Sunder |
= |
|
|
= |
150 shares |
Sunder
Money received on application 150 × Rs 10 |
= |
1,500 |
Money transferred to Share Capital 100 × Rs 10 |
= |
1,000 |
Excess Money on application |
|
500 |
Share allotment due 100 × Rs 25 |
= |
2,500 |
Less: Excess money on application |
= |
500 |
Calls-in-Arrears on Allotment |
|
2,000 |
Allotment
Allotment due on all shares 1,000 × Rs 25 |
= |
25,000 |
Less: Adjustment of excess money on application |
= |
5,000 |
|
|
20,000 |
Less: Calls-in-Arrears by Sunder |
= |
2,000 |
Money received on allotment |
= |
18,000 |
Capital Reserve
Share Forfeiture |
Cr. |
1,500 |
Less: Share Forfeiture |
Dr. |
1,000 |
Balance in Share Forfeiture after reissue |
|
500 |
Capital Reserve = Balance in Share Forfeiture after re-issue
= Rs 500
Page No 8.127:
Question 83:
A Ltd. invited applications for issuing 1,00,000 shares of â¹ 10 each at a premium of â¹ 1 per share. The amount was payable as follows:
On Application | – | 3 per share; |
On Allotment | – | 3 per share (including premium); |
On First Call | – | 3 per share; |
On Second and Final Call | – | Balance amount. |
Applications for 1,60,000 shares were received. Allotment was made on the following basis:
(i) | To applicants for 90,000 shares | – | 40,000 shares; |
(ii) | To applicants for 50,000 shares | – | 40,000 shares; |
(iii) | To applicants for 20,000 shares | – | Full shares. |
Excess money paid on application is to be adjusted against the amount due on allotment and calls.
Rishabh, a shareholder, who applied for 1,500 shares and belonged to category (ii), did not pay allotment, first and second and final call money.
Another shareholder, Sudha, who applied for 1,800 shares and belonged to category (i), did not pay the first and second and final call money.All the shares of Rishabh and Sudha were forfeited and were subsequently reissued at â¹ 7 per share fully paid.
Pass the necessary Journal entries in the books of A Ltd. Open Calls-in-Arrears Account and Calls-in-Advance Account wherever required.Answer:
In the books of A Ltd. Journal |
|||||
Date |
Particulars |
|
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
Bank A/c (1,60,000 × 3) |
Dr. |
4,80,000 |
|
||
To Share Application A/c |
|
|
4,80,000 |
||
(Being application money received on 1,60,000 shares) |
|
|
|
||
|
|
|
|||
Share Application A/c |
Dr. |
4,80,000 |
|
||
To Share Capital A/c (1,00,000 × 3) |
|
|
3,00,000 |
||
To Call-in Advance A/c (4,80,000 – 3,00,000) |
|
|
1,80,000 |
||
(Being application money adjusted on 1,00,000 shares and Excess treated as an advance) |
|
|
|
||
|
|
|
|||
Share Allotment A/c (1,00,000 × 3) |
Dr. |
3,00,000 |
|
||
To Share Capital A/c (1,00,000 × 2) |
|
|
2,00,000 |
||
To Securities Premium Reserve A/c (1,00,000 × 1) |
|
|
1,00,000 |
||
(Being allotment money due) |
|
|
|
||
|
|
|
|||
Bank A/c |
Dr. |
1,47,300 |
|
||
Calls-in-Advance A/c (1,20,000 + 30,000) |
Dr. |
1,50,000 |
|
||
Calls-in-Arrear A/c [(1,200 × 3) – 900] |
Dr. |
2,700 |
|
||
To Share Allotment A/c |
|
|
3,00,000 |
||
(Being allotment money received after adjusting the excess application money and non-payment on 1,200 shares) |
|
|
|
||
|
|
|
|||
Share First Call A/c (1,00,000×3) |
Dr. |
3,00,000 |
|
||
To Share Capital A/c |
|
|
3,00,000 |
||
(Being first call money due) |
|
|
|
||
Bank A/c |
Dr. |
2,64,600 |
|
||
Calls-in-Advance A/c (1,80,000 – 1,50,000) |
Dr. |
30,000 |
|
||
Calls-in-Arrears A/c [3,600 + (2,400 – 600)] |
|
5,400 |
|
||
To Share First Call A/c |
|
|
3,00,000 |
||
(Being amount received on first call except on 2,000 shares) |
|
|
|
||
|
|
|
|||
Share Second and Final Call A/c (1,00,000 × 2) |
Dr. |
2,00,000 |
|
||
To Share Capital A/c |
|
|
2,00,000 |
||
(Being share second and final call money due) |
|
|
|
||
|
|
|
|||
Bank A/c |
Dr. |
1,96,000 |
|
||
Call-in-Arrears A/c (2,000 × 2) |
Dr. |
4,000 |
|
||
To Share Second and Final Call A/c |
|
|
2,00,000 |
||
(Being amount received on second and final call except on 2,000 shares) |
|
|
|
||
|
|
|
|||
Share Capital A/c (2,000 × 10) |
Dr. |
20,000 |
|
||
Securities Premium Reserve A/c (1,200 × 1) |
Dr. |
1,200 |
|
||
To Share Forfeiture A/c [(3,600 + 900) + (800 × 5 + 600)] |
|
|
9,100 |
||
To Calls-in-Arrears A/c (2,700 + 5,400 + 4,000) |
|
|
12,100 |
||
(Being 2,000 shares forfeited for non-payment of amount due) |
|
|
|
||
|
|
|
|||
Bank A/c (2,000 × 7) |
Dr. |
14,000 |
|
||
Share Forfeiture A/c |
Dr. |
6,000 |
|
||
To Share Capital A/c |
|
|
20,000 |
||
(Being 2000 shares reissued at â¹ 7 per share fully paid-up) |
|
|
|
||
|
|
|
|||
Share Forfeiture A/c |
Dr. |
3,100 |
|
||
To Capital Reserve A/c (9,100 – 6,000) |
|
|
3,100 |
||
(Being capital gain on reissued shares transferred) |
|
|
|
Working Notes:
Computation Table |
|||||||
Categories |
Shares Applied |
Shares Allotted |
Money received on Application @ â¹ 3 |
Money Transferred to Share Capital @ â¹ 3 |
Allotment due @ â¹ 3(including premium of â¹ 1) |
Excess on Application |
Refund |
I |
90,000 |
40,000 |
2,70,000 |
1,20,000 |
1,20,000 |
1,50,000 |
Nil |
II |
50,000 |
40,000 |
1,50,000 |
1,20,000 |
1,20,000 |
30,000 |
Nil |
III |
20,000 |
20,000 |
60,000 |
60,000 |
60,000 |
– |
Nil |
|
|
|
|
|
|
|
Particulars |
Shares Allotted |
Shares Applied |
Excess on Application |
Money adjusted in calls |
Rishabh- Category (ii) |
(1,500×40,000/50,000) = 1,200 |
1,500 |
900 |
– |
Sudha- Category (i) |
(1,800×40,000/90,000) = 800 |
1,800 |
3,000 |
600 |
Page No 8.127:
Question 84:
Ruchi Ltd. issued for public subscription 40,000 Equity Shares of â¹ 10 each at a premium of â¹ 2 per share payable as:
On application | â¹ 2 per share; | |
On allotment | â¹ 5 per share (including premium), | |
On first call | â¹ 2 per share, | |
On second and final call | â¹ 3 per share. |
Applications were received for 60,000 shares. Allotment was made on pro rata basis to the applicants for 48,000 shares, the remaining applications being refused. Money overpaid on application was utilised towards sums due on allotment. Ram to whom 1,600 shares were allotted failed to pay the allotment money and Shyam to whom 2,000 shares were allotted failed to pay the two calls. These shares were subsequently forfeited after the second and final call was made. All the forfeited shares were reissued as fully paid-up @ â¹ 8 per share.
Give necessary Journal entries for the above transactions.
Answer:
Issued capital 40,000 shares of â¹ 10 each at premium of â¹ 2
Applied â¹ 60,000 shares
Allotment made as: |
|
Payable as: |
|
|
||
Applied |
|
Allotted |
|
Application |
â¹ 2 |
|
48,000 |
|
40,000 |
|
Allotment |
â¹ 5 |
(3+2) |
12,000 |
|
NIL |
|
First Call |
â¹ 2 |
|
60,000 |
|
40,000 |
|
Second and Final Call |
â¹ 3 |
|
|
|
|
|
|
â¹12 |
(10+2) per share |
Books of Ruchi Limited |
|||||
Date |
Particulars |
L.F. |
Debit Amount (â¹) |
Credit Amount (â¹) |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,20,000 |
|
|
To Equity Share Application A/c |
|
|
1,20,000 |
|
|
(Application money received for 60,000 shares at â¹ 2 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
1,20,000 |
|
|
To Equity Share Capital A/c |
|
|
80,000 |
|
|
To Equity Share Allotment A/c |
|
|
16,000 |
|
|
To Bank A/c |
|
|
24,000 |
|
|
(Share application of 40,000 shares transferred to share capital, Rs 16,000 adjusted on allotment and remaining â¹ 24,000 refunded) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
2,00,000 |
|
|
To Equity Share Capital A/c |
|
|
1,20,000 |
|
|
To Securities Premium A/c |
|
|
80,000 |
|
|
(Share allotment due on 40,000 shares at â¹ 5 each including â¹ 2 premium) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,76,640 |
|
|
To Equity Share Allotment A/c |
|
|
1,76,640 |
|
|
(Share allotment received on all shares except on 1,600 Shares held by Ram) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c |
Dr. |
|
80,000 |
|
|
To Equity Share Capital A/c |
|
|
80,000 |
|
|
(First call due on 40,000 shares at â¹ 2 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
72,800 |
|
|
To Equity Share First Call A/c |
|
|
72,800 |
|
|
(First call received on 36,400 shares and holders of 3,600 failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Second and Final Call A/c |
Dr. |
|
1,20,000 |
|
|
To Equity Share Capital A/c |
|
|
1,20,000 |
|
|
(Second and final call due on 40,000 shares at â¹ 3 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,09,200 |
|
|
To Equity Share second and Final Call A/c |
|
|
1,09,200 |
|
|
(Second and final call received on 36,400 shares and holders of 3,600 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
16,000 |
|
|
Securities Premium A/c |
Dr. |
|
3,200 |
|
|
To Share Forfeiture A/c |
|
|
3,840 |
|
|
To Equity Share Allotment A/c |
|
|
7,360 |
|
|
To Equity Share first Call A/c |
|
|
3,200 |
|
|
To Equity Share Second and Final Call A/c |
|
|
4,800 |
|
|
(1600 shares held by Ram forfeited for non-payment amount due including premium) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
20,000 |
|
|
To Equity Share Forfeiture A/c |
|
|
10,000 |
|
|
To Equity Share First Call A/c |
|
|
4,000 |
|
|
To Equity Share Second and Final Call A/c |
|
|
6,000 |
|
|
(2,000 shares held by Shyam forfeited for non-payment of amount due) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
28,800 |
|
|
Share Forfeiture A/c |
Dr. |
|
7,200 |
|
|
To Equity Share Capital A/c |
|
|
36,000 |
|
|
(3,600 shares of â¹ 10 each re-issued at â¹ 8 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
6,640 |
|
|
To Capital Reserve A/c |
|
|
6,640 |
|
|
(Balance in Share Forfeiture transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Notes:
Ram’s shares
Number of shares applied by Ram
Money received on Application (1,920 shares × â¹ 2) |
= |
â¹ 3,840 |
Less: Application money transferred to Share Capital (1,600 shares × â¹ 2) |
= |
â¹ 3,200 |
Excess money on Application |
= |
Rs 640 |
Share Allotment due (1,600 shares × â¹ 5) |
â¹ |
8,000 |
Less: Excess money on Application |
â¹ |
640 |
Calls-in-Arrears on Allotment |
â¹ |
7,360 |
Share Allotment
Share Allotment due (40,000 shares × â¹ 5) |
2,00,000 |
Less: Excess money on Application |
16,000 |
|
1,84,000 |
Less: Calls-in-Arrears by Ram |
7,360 |
Money received on Allotment |
1,76,640 |
Share First Call
Share First Call due (40,000 shares × â¹ 2) |
80,000 |
Less: Calls-in-Arrears by Ram and Shyam (3,600 shares ×â¹ 2) |
7,200 |
Money received on First Call |
72,800 |
Share Final Call
Share Final Call due 40,000 Shares × â¹ 3 |
1,20,000 |
Less: Calls-in-Arrears by Ram and Shyam (3,600 shares × â¹ 3) |
10,800 |
Money received on Second and Final Call |
1,09,200 |
Capital Reserve
Share Forfeiture on Ram’s shares (money received on application) |
3,840 |
|
Share Forfeiture on Shyam’s shares (2,000 shares × â¹ 5) |
10,000 |
|
|
13,840 |
Cr. |
Less: Share Forfeiture |
7,200 |
Dr. |
Capital Reserve |
6,640 |
|
Page No 8.128:
Question 85:
Competent Ltd. issued a prospectus inviting applications for 50,000 Equity Shares of â¹ 10 each, payable â¹ 5 as per application (including â¹ 2 as premium), â¹ 4 as per allotment and the balance towards first and final call.
Applications were received for 65,000 shares. Application money received on 5,000 shares was refunded with letter of regret and allotments were made on pro rata basis to the applicants of 60,000 shares. Money overpaid on applications including premium was adjusted on account of sums due on allotment.
Mr. Sharma to whom 700 shares were allotted failed to pay the allotment money and his shares were forfeited by the Directors on his subsequently failure to pay the call money.All the forfeited shares were subsequently sold to Mr. Jain credited as fully paid-up for â¹ 9 per share.
You are required to set out the Journal entries and the relevant entries in the Cash Book.Answer:
Issued shares 50,000 of Rs 10 each at a premium of Rs 2
Applied share 65,000
Allotment made as |
|
Payable as: |
|
|||
Applied |
|
Alloted |
|
Application |
Rs 5 |
(3 + 2) |
60,000 |
|
50,000 |
|
Allotment |
Rs 4 |
|
5,000 |
|
NIL |
|
First and Final Call |
Rs 3 |
|
65,000 |
|
50,000 |
|
|
Rs 12 |
(10 + 2) per share |
Books of Competent Ltd. |
|||||||
Dr. |
Cash Book |
Cr. |
|||||
Date |
Particulars |
L.F. |
Bank Rs |
Date |
Particulars |
L.F. |
Bank Rs |
|
|
|
|
|
|
|
|
|
Equity Share Application |
|
3,25,000 |
|
Equity Share Application |
|
25,000 |
|
Equity Share Allotment |
|
1,47,900 |
|
|
|
|
|
Equity Share First and Final Call |
|
1,47,900 |
|
Balance c/d |
|
6,02,100 |
|
Equity Share Capital |
|
6,300 |
|
|
|
|
|
|
|
6,27,100 |
|
|
|
6,27,100 |
|
|
|
|
|
|
|
|
Books of X Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
3,00,000 |
|
|
To Equity Share Capital A/c |
|
|
1,50,000 |
|
|
To Securities Premium |
|
|
1,00,000 |
|
|
To Equity Share Allotment A/c |
|
|
50,000 |
|
|
(Share application money of 50,000 shares transferred to share capital at Rs 3 each and to premium Rs 2 each and Rs 50,000 adjusted on allotment) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
2,00,000 |
|
|
To Equity Share Capital A/c |
|
|
2,00,000 |
|
|
(Allotment due on 50,000 shares at Rs 4 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First and Final Call A/c |
Dr. |
|
1,50,000 |
|
|
To Equity Share Capital A/c |
|
|
1,50,000 |
|
|
(First and final call due on 50,000 shares at Rs 3 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
7,000 |
|
|
To Share Forfeiture A/c |
|
|
2,800 |
|
|
To Equity Share Allotment A/c |
|
|
2,100 |
|
|
To Equity Share First and Final A/c |
|
|
2,100 |
|
|
(700 shares of Rs 10 each forfeited for the non-payment of amount due) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
700 |
|
|
To Equity Share Capital A/c |
|
|
700 |
|
|
(Loss on issue Re 1 on 700 shares charged from the Share Forfeiture Account) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,100 |
|
|
To Capital Reserve A/c |
|
|
2,100 |
|
|
(Balance in Share Forfeiture after re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Notes-
Mr. Sharma’s Share
Number of shares applied by Mr Sharma
Money received on Application 840 shares × Rs 5 |
= |
4,200 |
Less: Money transferred to Share Capital 700 shares × Rs 3 |
= |
2,100 |
Less: Securities Premium 700 shares × Rs 2 |
= |
1,400 |
Excess money on Application |
|
700 |
Allotment due 700 shares × Rs 4 |
= |
2,800 |
Less: Excess money on Application |
|
700 |
Calls-in Arrears on Allotment |
|
2,100 |
Share Allotment
Share Allotment due 50,000 × Rs 4 |
= |
2,00,0000 |
Less: Excess money on Application |
= |
50,000 |
Less: Calls-in-Arrears |
= |
2,100 |
Money received on Application |
|
1,47,900 |
Share First and Final Call
Share First and Final Call due 50,000 Shares × Rs 3 |
= |
1,50,000 |
Less: Calls in Arrears on 700 shares × Rs 3 |
= |
2,100 |
Money received on First and Final Call |
|
1,47,900 |
Capital Reserve
Money received on Application from Mr Sharma |
= |
Rs 4,200 |
|
Less: Securities Premium 700 × Rs 2 |
= |
Rs 1,400 |
|
Share Forfeiture |
Cr. |
|
2,800 |
Share Forfeiture 700 × Re 1 |
Dr. |
|
700 |
Capital Reserve |
|
2,100 |
Page No 8.128:
Question 86:
Nitro Paints Ltd. invited applications for issuing 1,60,000 equity shares of â¹ 10 each at a premium of â¹ 3 per share. The amount was payable as follows:
On application | â¹ 6 per share(including premium â¹1); | |
On allotment | â¹ 3 per share(including premium â¹ 1); and | |
The balance | on First and Final call. |
Applications for 1,80,000 shares were received .Applications for 10,000 shares were rejected and pro rata allotment was made to the remaining applicants.Over payment received on application was adjusted towards sums due on allotment . All calls were made and were duly received except allotment and final call from Aditya who was allotted 3,200 shares. His shares were forfeited . Half of the forfeited shares were reissued for â¹ 43,000 as fully paid-up .
Pass necessary journal entries for the above transactions in the books of Nitro Paints Ltd.
Answer:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(â¹)
|
Credit
Amount
(â¹)
|
|
Bank A/c (1,80,000 × 6) |
Dr.
|
10,80,000
|
|
||
To Equity Share Application A/c |
|
|
10,80,000
|
||
(Application money received) |
|
|
|
||
|
|
|
|||
Equity Share Application A/c |
Dr.
|
10,80,000
|
|
||
To Equity Share Capital A/c(1,60,000 × 5) |
|
|
8,00,000
|
||
To Securities Premium Reserve A/c (1,60,000 × 1) |
|
|
1,60,000
|
||
To Share Allotment A/c(10,000 × 6) |
|
|
60,000
|
||
To Bank A/c (10,000 × 6) |
|
|
60,000
|
||
(Application money transferred) |
|
|
|
||
|
|
|
|||
Equity Share Allotment A/c (1,60,000 × 3) |
Dr.
|
4,80,000
|
|
||
To Equity Share Capital A/c(1,60,000 × 2) |
|
|
3,20,000
|
||
To Securities Premium Reserve A/c(1,60,000 × 1) |
|
|
1,60,000
|
||
(Allotment money due) |
|
|
|
||
|
|
|
|||
Bank A/c (4,80,000 â 60,000 â 8,400) |
Dr.
|
4,11,600
|
|
||
To Equity Share Allotment A/c |
|
|
4,11,600
|
||
(Allotment money received) |
|
|
|
||
|
|
|
|||
Equity Share First Call A/c (1,60,000 × 4) |
Dr.
|
6,40,000
|
|
||
To Equity Share Capital A/c |
|
|
4,80,000
|
||
To Securities Premium Reserve A/c |
|
|
1,60,000
|
||
(Call money due) |
|
|
|
||
|
|
|
|||
Bank A/c |
Dr.
|
6,27,200
|
|
||
To Equity Share First Call A/c |
|
|
6,27,200
|
||
(Call money received) |
|
|
|
||
|
|
|
|||
Equity Share Capital A/c (3,200 × 10) |
Dr.
|
32,000
|
|
||
Securities Premium Reserve A/c (3,200 × 2) |
Dr.
|
6,400
|
|
||
To Equity Share Allotment A/c |
|
|
8,400
|
||
To Equity Share First & Final Call A/c |
|
|
12,800
|
||
To Equity Share Forfeiture A/c |
|
|
17,200
|
||
(3,200 shares forfeited) |
|
|
|
||
|
|
|
|||
Bank A/c |
Dr.
|
43,000
|
|
||
To Equity Share Capital A/c |
|
|
16,000
|
||
To Securities Premium A/c |
|
|
27,000
|
||
(1,600 shares re–issued) |
|
|
|
||
|
|
|
|||
Equity Share Forfeiture A/c |
Dr.
|
8,600
|
|
||
To Capital Reserve A/c |
|
|
8,600
|
||
(Profit on re-issue transferred) |
|
|
|
||
|
Working Notes:
Amount unpaid by Aditya on Allotment | |
Application money received |
20,400
|
Less: Transferred to Share Capital |
(19,200)
|
Excess received on Application |
1,200
|
Allotment money due |
9,600
|
Less: Excess adjustment |
(1,200)
|
Amount unpaid by Aditya |
8,400
|
Page No 8.128:
Question 87:
Raja Ltd. invited applications for issuing 50,000 Equity Shares of â¹ 10 each . The amount was payable as follows:
On application â¹ 3 per share, On allotment â¹ 5 per share, On first and final call Balance. |
Applications for 70,000 shares were received . Allotment was made to all applicants on pro rata basis. Excess money received on application was adjusted towards sums due on allotment . Ramesh, who had applied for 700 shares , did not pay the allotment money and on his failure to pay the allotment money his shares were forfeited. Afterwards , the first and the final call was made . Adhar, who had been allotted 500 shares, did not pay the first and final call . His shares were also forfeited . Out of the forfeited shares 900 shares were reissued at â¹ 8 per share as fully paid-up . The reissued shares included all the shares of Ramesh.
Pass necessary journal entries for the above transactions in the books of the company.
Answer:
Journal
|
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Bank A/c (3×70,000) |
Dr. |
|
2,10,000 |
|
|
|
To Equity Share Application A/c |
|
|
|
2,10,000 |
|
|
(Application money on 70,000 shares received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
2,10,000 |
|
|
|
To Equity Share Capital A/c (3×50,000) |
|
|
|
1,50,000 |
|
|
To Equity Share Allotment A/c (WN2) |
|
|
|
60,000 |
|
|
(Share Application money on 50,000 shares transferred to share capital account and excess was utilised on allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
2,50,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
2,50,000 |
|
|
(Allotment money due on allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (WN2) |
Dr. |
|
1,88,100 |
|
|
|
To Equity Share Allotment A/c |
|
|
|
1,88,100 |
|
|
(Allotment money received on 49,500 shares and Rs 60,000 excess money adjusted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
4,000 |
|
|
|
To Equity Share Allotment A/c(WN1) |
|
|
|
1,900 |
|
|
To Equity Share Forfeiture A/c(WN1) |
|
|
|
2,100 |
|
|
(500 shares forfeited for non payment of allotment money |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share First and Final Call A/c |
Dr. |
|
99,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
99,000 |
|
|
(Share Call money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
98,000 |
|
|
|
To Equity Share First and Final Call A/c |
|
|
|
98,000 |
|
|
(Call money received on 49,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
5,000 |
|
|
|
To Equity Share First and Final Call A/c |
|
|
|
1,000 |
|
|
To Equity Share Forfeiture A/c (8×500) |
|
|
|
4,000 |
|
|
(500 shares forfeited for non payment of Call money) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
7,200 |
|
|
|
Equity Share Forfeiture A/c |
Dr. |
|
1,800 |
|
|
|
To Equity Share Capital |
|
|
|
9,000 |
|
|
(900 shares reissued at Rs 8 per share) |
|
|
|
|
|
|
(Share call money received and Calls-in-Advance money adjusted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c (WN3) |
Dr. |
|
3,500 |
|
|
|
To Capital Reserve A/c |
|
|
|
3,500 |
|
|
(Profit on forfeiture of shares transferred) |
|
|
|
|
|
|
|
|
|
|
|
Working Note:
Page No 8.128:
Question 88:
Prince Limited issued a prospectus inviting applications for 20,000 equity shares of â¹10 each at a premium of â¹ 3 per share payable as follows:
With application | â¹2, |
|
On allotment (including premium) | â¹5, | |
On first call | â¹3, | |
On second call | â¹3. |
Applications were received for 30,000 shares and allotment was made on pro rata basis. Money overpaid on application s was adjusted to the amount due on allotment.
Mr Mohit whom 400 shares were allotted , failed to pay the allotment money and the first call , and his shares were forfeited after the first call . Mr Joly, whom 600 shares were allotted , failed to pay for the two calls and hence, his shares were forfeited .
Of the shares forfeited, 800 shares were reissued to Supriya as fully paid for â¹ 9 per share , the whole of Mr Mohit's shares being included.
Answer:
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
Rs
|
Credit
Amount
Rs
|
||
Bank A/c |
Dr.
|
60,000
|
||||
To Share Application A/c |
60,000
|
|||||
(Application money received on 30,000 shares @ Rs 2 per share) | ||||||
Share Application A/c |
Dr.
|
60,000
|
||||
To Share Capital A/c |
40,000
|
|||||
To Share Allotment A/c |
20,000
|
|||||
(Application money received transferred to Share Capital and adjusted on allotment) | ||||||
Share Allotment A/c |
Dr.
|
1,00,000
|
||||
To Share Capital A/c |
40,000
|
|||||
To Securities Premium A/c |
60,000
|
|||||
(Allotment money due on 20,000 shares @ Rs 5 per share including premium of Rs 3 per share) | ||||||
Bank A/c (1,00,000 – 20,000 – 1,600) |
Dr.
|
78,400
|
||||
To Share Allotment A/c |
78,400
|
|||||
(Allotment money received) | ||||||
Share First Call A/c |
Dr.
|
60,000
|
||||
To Share Capital A/c |
60,000
|
|||||
(Share First Call due on 20,000 shares @ Rs 3 per share) | ||||||
Bank A/c (60,000 – 1,200 – 1,800) |
Dr.
|
57,000
|
||||
To Share First Call A/c |
57,000
|
|||||
(First call money received) | ||||||
Share Capital A/c |
Dr.
|
2,800
|
||||
Share Premium A/c |
Dr.
|
1,200
|
||||
To Share Forfeiture A/c |
1,200
|
|||||
To Share Allotment A/c |
1,600
|
|||||
To Share First Call A/c |
1,200
|
|||||
(400 shares forfeited) | ||||||
Share Second Call A/c |
Dr.
|
58,800
|
||||
To Share Capital A/c |
58,800
|
|||||
(Final Call money due on 19,600 shares @ 3 per share) | ||||||
Bank A/c (58,800 – 1,800) |
Dr.
|
57,000
|
||||
To Share Second Call A/c |
57,000
|
|||||
(Second Call money received) | ||||||
Share Capital A/c |
Dr.
|
6,000
|
||||
To Share Forfeiture A/c |
2,400
|
|||||
To Share First Call A/c |
1,800
|
|||||
To Share Second Call A/c |
1,800
|
|||||
(600 shares forfeited) | ||||||
Bank A/c |
Dr.
|
7,200
|
||||
Share Forfeiture A/c |
Dr.
|
800
|
||||
To Share Capital A/c |
8,000
|
|||||
(800 shares reissued @ Rs 9 each) | ||||||
Share Forfeiture A/c |
Dr.
|
2,000
|
||||
To Capital Reserve |
2,000
|
|||||
|
(Profit on re–issue transferred to Capital Reserve) |
|
|
|
||
Balance Sheet
|
||
Particulars
|
Note No.
|
Amount
(â¹)
|
I. Equity and Liabilities | ||
1. Shareholders’ Fund
|
||
a. Share Capital
|
1
|
1,98,800
|
b. Reserves and Surplus
|
2
|
60,800
|
2. Non-Current Liabilities
|
||
3. Current Liabilities
|
||
Total
|
2,59,600
|
|
II. Assets | ||
1. Non-Current Assets
|
||
2. Current Assets
|
||
a. Cash and Cash Equivalents
|
3
|
2,59,600
|
Total
|
2,59,600
|
|
NOTES TO ACCOUNTS
Note No.
|
Particulars
|
Amount
|
||
1
|
Share Capital | |||
Authorised Share Capital | ||||
…….. shares of Rs 10 each |
–
|
|||
Issued Share Capital | ||||
20,000 shares of Rs 10 each |
2,00,000
|
|||
Subscribed, Called–up and Paid–up Share Capital | ||||
19,800 shares of Rs 10 each |
1,98,000
|
|||
Add: Share Forfeiture (200 × 4) |
800
|
1,98,800
|
||
2
|
Reserves and Surplus | |||
Securities Premium |
58,800
|
|||
Capital Reserve |
2,000
|
60,800
|
||
3
|
Cash and Cash Equivalents | |||
Cash at Bank |
2,59,600
|
|||
Working Notes:
WN1: Calculation of unpaid amount on allotment by Mohit
Money received on Application | (600×2) |
1,200
|
|
Less: Adjusted on application | (400×2) |
(800)
|
|
Excess amount received |
400
|
Amount due on Allotment | (400×5) |
2,000
|
|
Less: Excess amount received |
(400)
|
||
Amount unpaid on allotment |
1,600
|
WN2: Calculation of Amount to be transferred to Capital Reserve
Amount forfeited on Mohit’s 400 shares(600×2) |
1,200
|
Amount forfeited on Joly’s 400 shares (400 × 4) |
1,600
|
Total Credit Balance in Share Forfeiture |
2,800
|
Less: Discount allowed on 800 shares reissued |
(800)
|
Amount to be transferred to Capital Reserve |
2,000
|
Page No 8.129:
Question 89:
XYZ Ltd. invited applications for issuing 50,000 Equity Shares of â¹10 each . The amount was payable as:
On application | â¹ 3 per share, | |
On allotment | â¹ 4 per share, | |
On first and final call | â¹ 3 per share. |
Applications were received for 75,000 shares and pro rata allotment was made as:
Applicants for 40,000 shares were allotted 30,000 shares on pro rata basis.
Applicants for 35,000 shares were allotted 30,000 shares on pro rata basis.
Ramu, to whom 1,200 shares were allotted out of the group applying for 40,000 shares, failed to pay the allotment money. His shares were forfeited immediately after allotment .
Shamu, who had applied for 700 shares out of the group applying for 35,000 shares , failed to pay the first and final call . His shares were also forfeited. Out of the forfeited shares, 1,000 shares were reissued @â¹8 per share as fully paid-up. The reissued shares included all the forfeited shares of Shamu.
Pass necessary Journal entries to record the above transactions.
Answer:
Issued 1,000 equity shares of Rs 10 each
Applied 1,800 shares
Allotment made as: |
|
Amount payable per shares as: |
|||
Applied |
|
Allotted |
|
Application |
Rs 3 |
40,000 |
|
30,000 |
|
Allotment |
Rs 4 |
35,000 |
|
20,000 |
|
First Call |
Rs 3 |
1,800 |
|
1,000 |
|
|
Rs 10 |
Books of XYZ Limited Journal Entries |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,25,000 |
|
|
To Equity Share Application A/c |
|
|
2,25,000 |
|
|
(Share application money received for 75,000 shares at Rs 3 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
2,25,000 |
|
|
To Equity Share Capital A/c |
|
|
1,50,000 |
|
|
To Equity Share Allotment A/c |
|
|
75,000 |
|
|
(Application money of 50,000 shares transferred to share capital and the remaining amount adjusted on allotment) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
2,00,000 |
|
|
To Equity Share Capital A/c |
|
|
2,00,000 |
|
|
(Share allotment due on 50,000 shares at Rs 4 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,21,400 |
|
|
To Equity Share Allotment A/c |
|
|
1,21,400 |
|
|
(Share allotment received on 48,800 shares after adjusting the excess money on application) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (1,200 × Rs 7) |
Dr. |
|
8,400 |
|
|
To Share Forfeiture A/c |
|
|
4,800 |
|
|
To Equity Share Allotment A/c |
|
|
3,600 |
|
|
(1,200 shares of Rs 10 each Rs 7 called-up forfeited for the non-payment of allotment) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First and Final Call A/c |
Dr. |
|
1,46,400 |
|
|
To Equity Share Capital A/c |
|
|
1,46,400 |
|
|
(First and final call due on 48,800 shares at Rs 3 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,45,200 |
|
|
To Equity Share First and Final Call A/c |
|
|
1,45,200 |
|
|
(Share first and call received 48,800 shares at Rs 3 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
4,000 |
|
|
To Share Forfeiture A/c (400 × Rs 7) |
|
|
2,800 |
|
|
To Equity Shares First and Final Call A/c |
|
|
1,200 |
|
|
(400 shares forfeited for the non-payment of first and final call) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
8,000 |
|
|
Share Forfeiture A/c |
Dr. |
|
2,000 |
|
|
To Equity Share Capital A/c |
|
|
10,000 |
|
|
(1,000 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
3,200 |
|
|
To Capital Reserve A/c |
|
|
3,200 |
|
|
(Balance of 1,000 re-issued shares in Share Forfeiture Account transferred to Capital Reserve Account) |
|
|
|
|
|
|
|
|
|
Working Notes-
Rumu’s Share
Number of shares applied = = 1,600 shares
Money received on Application 1,600 shares × Rs 3 |
= |
Rs 4,800 |
Money adjusted on Application 1,200 Shares × Rs 3 |
= |
Rs 3,600 |
Excess on Application |
|
Rs 1,200 |
Allotment due on 1,200 shares × Rs 4 |
= |
4,800 |
Less: Excess money on Application |
= |
1,200 |
Calls-in-Arrears on Allotment |
|
3,600 |
Share Allotment
Share Allotment due 50,000 shares × Rs 4 |
= |
2,00,000 |
Less: Excess money on application |
= |
75,000 |
|
|
1,25,000 |
Less: Calls-in-Arrears on Allotment |
= |
3,600 |
Money received on Allotment |
= |
1,21,400 |
Shamu’s Shares
Number of shares allotted to Shamu
First and Final Call
First and Final Call due; 48,800 shares × Rs 3 |
= |
1,46,400 |
Less: Calls-in-Arrears by Shamu; 400 shares × Rs 3 |
= |
1,200 |
Money received on of First and Final Call |
|
1,45,200 |
Capital Reserve
Shares re-issued out the shares forfeited from Ramu = 1,000 shares − Shamu’s shares
= 1,000 − 400
= 600 shares
on re-isssue Ramu’s shares:
Capital Reverse on re-issue of 600 shares forfeited from Ramu |
||||
Share Forfeiture Cr. |
= |
Rs |
4 |
|
Share Forfeiture Dr. |
= |
Rs |
2 |
|
Share Forfeiture after re-issued |
|
Rs |
2 |
per share |
Capital Reserve after re-issue of 600 shares = Share Forfeiture after re-issue (per share) × 600 shares
= Rs 2 × 600
= Rs 1,200
on re-isssue Shamu’s shares:
Share Forfeiture |
Cr. |
Rs 7 |
|
Share Forfeiture |
Dr. |
Rs 2 |
|
Share Forfeiture after re-issue |
Rs 5 |
per share |
Capital Reserve after re-issue of 400 shares = Share Forfeiture after re-issue (per share) × 600 shares
= Rs 5 × 400
= Rs 2,000
Total amount of Capital Reserve = Capital Reserve of 600 shares + Capital Reserve of 400 shares
Total amount of Capital Reserve |
= Capital Reserve of 600 shares + Capital Reserve of 400 shares |
|
= Rs 1,200 + Rs 2,000 |
|
= Rs 3,200 |
Page No 8.129:
Question 90:
Super Star Ltd. issued a prospectus inviting applications for 2,000 shares of â¹ 10 each at a premium of â¹ 2 per share , payable as:
On application | â¹ 3 per share (including â¹ 1 premium), | |
On allotment | â¹ 4 per share (including â¹ 1 premium), | |
On first call | â¹ 3 per share | |
On second and final call | â¹ 2 per share. |
Applications were received for 3,000 shares and pro rata allotment was made on the applications for 2,400 shares . It was decided to utilise excess application money towards the amount due on allotment .
Ramesh, to whom 40 shares were allotted , failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited.
Rajesh, who applied for 72 shares failed to pay the two calls and on such failure, his shares were forfeited .
Of the shares forfeited, 80 shares were sold to Krishan credited as fully paid-up for â¹ 9 per share, the whole of Ramesh's shares being included.
Give journal entries to record the above transactions ( including cash transactions).
Answer:
Issued capital 2,000 shares of Rs 10 each at premium of Rs 2
Applied shares 3,000
Allotment made as: |
|
Payable as: |
|
|||
Applied |
|
Allotted |
|
Application |
Rs 3 |
(2 + 1) |
2,400 |
|
2,000 |
|
Allotment |
Rs 4 |
(3 + 1) |
600 |
|
NIL |
|
First Call |
Rs 3 |
|
|
|
|
|
Final Call |
Rs 2 |
|
3,000 |
|
2,000 |
|
|
Rs 12 |
(10 + 2) per share |
Books of Super Star Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
9,000 |
|
|
To Share Application A/c |
|
|
9,000 |
|
|
(Share application money received for 3,000 shares at Rs 3 per share including Re 1 premium) |
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
9,000 |
|
|
To Share Capital A/c |
|
|
4,000 |
|
|
To Securities Premium A/c |
|
|
2,000 |
|
|
To Share Allotment A/c |
|
|
1,200 |
|
|
To Bank A/c |
|
|
1,800 |
|
|
(Share application money of 2,000 shares transferred to Share Capital and securities premium at Rs 2, and Re 1 each respectively, Rs 1,800 adjusted on allotment and remaining Rs 1,200 refunded) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
8,000 |
|
|
To Share Capital A/c |
|
|
6,000 |
|
|
To Securities Premium A/c |
|
|
2,000 |
|
|
(Allotment due on 2,000 shares at Rs 4 per share including Re 1 premium) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,664 |
|
|
To Share Allotment A/c |
|
|
6,664 |
|
|
(Allotment received for 1960 shares after adjustment of excess application money) |
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
6,000 |
|
|
To Share Capital A/c |
|
|
6,000 |
|
|
(First call due on 2,000 shares of at Rs 3 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
5,700 |
|
|
To Share First Call A/c |
|
|
5,700 |
|
|
(Share First Call received for 1,900 shares) |
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
320 |
|
|
Securities Premium A/c |
Dr. |
|
40 |
|
|
To Share Forfeiture A/c (144 – 40) |
|
|
104 |
|
|
To Share Allotment A/c |
|
|
136 |
|
|
To Share First Call A/c |
|
|
120 |
|
|
(40 shares of Rs 10 each, Rs 8 called-up for non-payment of money due on allotment and first including Re 1 premium) |
|
|
|
|
|
|
|
|
|
|
|
Share Final Call A/c |
Dr. |
|
3,920 |
|
|
To Share Capital A/c |
|
|
3,920 |
|
|
(Final call due on 1,960 shares at Rs 2 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
3,800 |
|
|
To Share Final Call A/c |
|
|
3,800 |
|
|
(Final call received for 1,900 shares) |
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
600 |
|
|
To Share Forfeiture A/c |
|
|
300 |
|
|
To Share First Call A/c |
|
|
180 |
|
|
To Share Final Call A/c |
|
|
120 |
|
|
(60 shares forfeited for the non-payment of first call and final call money) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
720 |
|
|
Share Forfeiture A/c |
Dr. |
|
80 |
|
|
To Share Capital A/c |
|
|
800 |
|
|
(80 shares of Rs 10 each re-issued at Rs 9 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
224 |
|
|
To Capital Reserve A/c |
|
|
224 |
|
|
(Balance in Share Forfeiture Account of 80 re-issued shares transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Notes-
Ramesh’s Shares
Number of shares applied
Money received on Application (48 shares × Rs 3) |
= |
Rs |
144 |
Less: Application money adjusted to Share Capital (40 shares × Rs 2) |
= |
Rs |
80 |
Less: Securities Premium (40 shares × Re 1) |
= |
Rs |
40 |
Excess money Application |
= |
Rs |
24 |
Allotment due (40 shares × Rs 4) |
= |
Rs |
160 |
Less: Excess money on Application |
= |
Rs |
24 |
Calls-in-Arrears |
|
Rs |
136 |
Rajesh’s Shares
Number of shares allotted =
Share Allotment
Money due on Allotment (2,000 shares × Rs 4) |
8,000 |
Less: Excess application money adjusted |
1,200 |
Less: Calls-in-Arrears |
136 |
Money received on Allotment |
6,664 |
Share First Call
Money due on First Call (2,000 shares × Rs 3) |
6,000 |
Less: Calls-in-Arrears on Ramesh (40 shares × 3) |
120 |
Less: Calls-in-Arrears on Rajesh (60 shares × 3) |
180 |
Money received on First Call |
5,700 |
Share Final Call
Money due on Final Call (1,960 shares × Rs 2) |
3920 |
Less: Calls in Arrest on Rajesh (60 shares × Rs 2) |
120 |
Money received on Final Call |
3,800 |
Capital Reserve
Ramesh
Money received from Ramesh |
144 |
|
Less: Securities Premium (40 shares × Re 1) |
40 |
|
Share Forfeiture |
Cr. |
104 |
Share forfeiture 40 × Rs 1 |
Dr. |
40 |
Capital Reserve of Ramesh |
64 |
Rajesh
Share Forfeiture |
Cr. |
Rs |
5 per share |
Share Forfeiture |
Dr. |
Rs |
1 per share |
Share Forfeiture after re-issue |
Rs |
4 per share |
Capital Reserve on Rajesh’s shares = Share Forfeiture after re-issue (per share) × No. of shares re-issued
= Rs 4 × 40
= Rs 160
Total Capital Reserve = Capital Reserve of 40 shares of Ramesh + Capital Reserve of 40
shares of Rajesh
= 64 + 160
= Rs 224
Page No 8.129:
Question 91:
Bharat Ltd . invited applications for issuing 2,00,000 Equity Shares of â¹ 10 each. The amount was payable as:
On application â¹ 3 per share , on allotment â¹ 5 per share and on first and final call â¹ 2 per share. Applications for 3,00,000 shares were received and pro rata allotment was made to all the applicants on the following basis:
Applicants for 2,00,000 shares were allotted 1,50,000 shares on pro rata basis.
Applicants for 1,00,000 shares were allotted 50,000 shares on pro rata basis.
Bajaj, who was allotted 3,000 shares out of group applying for 2,00,000 shares failed to pay the allotment money. His shares were forfeited immediately after allotment . Sharma, who had applied for 2,000 shares out of the group applying for 1,00,000 shares failed to pay the first and final call . His shares were also forfeited.
Out of the forfeited shares 3,500 shares were reissued as fully paid-up @ â¹ 8 per share . The reissued shares included all the forfeited shares of Bajaj.
Give necessary journal entries to record the above transactions.
Answer:
Issued capital 2,00,000 shares of Rs 10 each.
Applied shares 3,00,000
Allotment made as: |
|
Payable as: |
|
|||
Applied |
|
Allotted |
|
Application |
Rs 3 |
|
2,00,000 |
|
1,50,000 |
|
Allotment |
Rs 5 |
|
1,00,000 |
|
50,000 |
|
First and Final Call |
Rs 2 |
|
3,00,000 |
|
2,00,000 |
|
|
Rs 10 |
per share |
Books of Bharat Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
9,00,000 |
|
|
To Equity Share Application A/c |
|
|
9,00,000 |
|
|
(Application money received for 3,00,000 shares at Rs 3 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
9,00,000 |
|
|
To Equity Share Capital A/c |
|
|
6,00,000 |
|
|
To Equity Share Allotment A/c |
|
|
3,00,000 |
|
|
(Application money of 2,00,000 shares at Rs 3 each transferred to Shares Capital and excess money Rs 3,00,000 adjusted on allotment) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
10,00,000 |
|
|
To Equity Share Capital A/c |
|
|
10,00,000 |
|
|
(Allotment due on 2,00,000 shares at Rs 5 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,88,000 |
|
|
To Equity Share Allotment A/c |
|
|
6,88,000 |
|
|
(Allotment received on 1,97,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
24,000 |
|
|
To Share Forfeiture A/c |
|
|
12,000 |
|
|
To Share Allotment A/c |
|
|
12,000 |
|
|
(3,000 shares forfeited for the non-payment of money due on allotment) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First and Final Call A/c |
Dr. |
|
3,94,000 |
|
|
To Equity Share Capital A/c |
|
|
3,94,000 |
|
|
(First and Final call due on 1,97,000 shares at Rs 2 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
|
3,92,000 |
|
|
|
To Equity Share First and Final Call A/c |
|
|
3,92,000 |
|
|
(Share First and Final Call received on 1,97,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
10,000 |
|
|
To Share Forfeiture A/c |
|
|
8,000 |
|
|
To Equity Share First and Final Call A/c |
|
|
2,000 |
|
|
(1,000 shares forfeited for the non-payment of first and final call) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
28,000 |
|
|
Share Forfeiture A/c |
Dr. |
|
7,000 |
|
|
To Equity Share Capital A/c |
|
|
35,000 |
|
|
(3,500 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
9,000 |
|
|
To Capital Reserve A/c |
|
|
9,000 |
|
|
(Balance in Share Forfeiture of 3,500 re-issued shares transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Bajaj’s Share
Number of shares applied
Money received on Application (4,000 shares × Rs 3) |
= |
12,000 |
Less: Money transferred to Shares capital (3000 shares × Rs 3) |
= |
9,000 |
Excess money on Application |
|
3,000 |
Allotment due (3,000 shares × Rs 5) |
= |
15,000 |
Less: Excess money on application |
= |
3,000 |
Calls-in-Arrears on Allotment |
|
12,000 |
Share Allotment
Money due an allotment (2,00,000 shares × Rs 5) |
= |
10,00,000 |
Less: Excess money on Application |
= |
3,00,000 |
Less: Calls-in-Arrears on Bajaj’s shares |
= |
12,000 |
Money received on Allotment |
= |
Rs 6,88,000 |
Sharma’s shares
Number of shares allotted
Capital Reserve
Forfeiture of shares held by Bajaj
Share Forfeiture Credit |
= |
Rs 4 per shares |
|
Share Forfeiture Debit on re-issue |
= |
Rs 2 |
per share |
Share Forfeiture after re-issue |
|
Rs 2 |
per share |
Capital Reserve on re-issue of Bajaj’s shares |
= |
Rs 2 × 3,000 (no. of shares re-issued) |
|
= |
Rs 6,000 |
Forfeiture of shares held by Sharma
Share Forfeiture Credit |
Rs 8 |
per share |
Share Forfeiture Debit on re-issue |
Rs 2 |
per share |
|
Rs 6 |
per share |
Capital Reserve on re-issue of 500 Shares of Sharma = Rs 6 × 500 (no. of shares re-issued) = Rs 3,000
Total Capital Reserve on 3,500 shares = 6,000 (re-issue of Bajaj’s) + 3,000 (re-issue of Sharma’s) = Rs 9,000
Page No 8.130:
Question 92:
The Directors of Super Star Ltd. invited applications for 2,00,000 Equity Shares of â¹ 10 each to be issued at 20% premium. The money payable per shares was: on application â¹ 5, on allotment â¹ 4 (including premium of â¹ 2), first call â¹ 2 and final call â¹ 1.
Applications were received for 2,40,000 shares and allotment was made as:
(i) to applicants for 1,00,000 shares in full,
(ii) to applicants for 80,000 shares60,000 shares,
(iii) to applicants for 60,000 shares40,000 shares.
Applicants of 1,000 shares falling in Category
(i) and applicants of 1,200 shares falling in Category
(ii) failed to pay allotment money. These shares were forfeited on failure to pay first call. Holders of 1,200 shares falling in Category
(iii) failed to pay the first and final call and these shares were forfeited after final call.
1,300 shares[1,000 of Category(i) and 300 of Category (ii)] were reissued at â¹ 8 per share as fully paid-up.
Journalise the above transactions. Prepare Cash book and Balance Sheet.
Answer:
Applied shares 2,40,000
Allotment made as: |
|
Payable as: |
|
|||
Applied |
|
Allotted |
|
Application |
Rs 5 |
|
1,00,000 |
|
1,00,000 |
|
Allotment |
Rs 4 |
(2 + 2) |
80,000 |
|
60,000 |
|
First Call |
Rs 2 |
|
60,000 |
|
40,000 |
|
Final Call |
Re 1 |
|
2,40,000 |
|
2,00,000 |
|
|
Rs 12 |
(10 + 2) per share |
Cash Book |
|||||
Dr. |
|
Cr. |
|||
Date |
Particulars |
Amount Rs |
Date |
Particulars |
Amount Rs |
|
|
|
|
|
|
|
Equity Share Application (2,40,000 × Rs 5) |
12,00,000 |
|
Balance c/d |
|
|
Equity Share Allotment (See note-2) |
5,93,900 |
|
|
|
|
Equity Share First Call (See note-3) |
3,93,800 |
|
|
|
|
Equity Share First Call |
1,96,900 |
|
|
|
|
(1,96,900 shares × Re 1) |
|
|
|
|
|
Equity Share Capital (1,000 shares of category i) |
8,000 |
|
|
|
|
Equity Share Capital (300 shares of category ii) |
2,400 |
|
23,95,000 |
|
|
|
23,95,000 |
|
23,95,000 |
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
12,00,000 |
|
|
To Equity Share Capital A/c |
|
|
10,00,000 |
|
|
To Equity Share allotment A/c |
|
|
2,00,000 |
|
|
(Equity Share application money of 2,00,000 shares at Rs 5 each transferred to Share Capital and Rs 2,00,000 adjusted on allotment) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
8,00,000 |
|
|
To Equity Share Capital A/c |
|
|
4,00,000 |
|
|
To Securities Premium A/c |
|
|
4,00,000 |
|
|
(Share allotment due on 2,00,000 shares at Rs 4 each including Rs 2 premium) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c |
Dr. |
|
4,00,000 |
|
|
To Equity Share Capital A/c |
|
|
4,00,000 |
|
|
(First call due on 2,00,000 shares at Rs 2 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
9,000 |
|
|
Securities Premium A/c |
Dr. |
|
2,000 |
|
|
To Share Forfeiture A/c (900 shares × Rs 5) |
|
|
5,000 |
|
|
To Equity Share Allotment A/c (900 shares × Rs 4) |
|
|
4,000 |
|
|
To Equity Share First Call A/c (900 shares × Rs 2) |
|
|
2,000 |
|
|
(1,000 shares of category (i) Rs 10 each, on which Rs 8 had called-up, forfeited for the non-payment of amount due) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
8,100 |
|
|
Securities Premium A/c |
Dr. |
|
1,800 |
|
|
To Share Forfeiture A/c |
|
|
6,000 |
|
|
To Equity Shares Allotment A/c |
|
|
2,100 |
|
|
To Equity Shares First-Call A/c |
|
|
1,800 |
|
|
(900 shares of category (ii) forfeited for the non-payment of amount due) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Final Call A/c |
Dr. |
|
1,98,100 |
|
|
To Equity Shared Capital A/c |
|
|
1,98,100 |
|
|
(Final call due on 1,98,100 shares at Re 1 each) |
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
12,000 |
|
|
To Share Forfeiture A/c |
|
|
8,400 |
|
|
To Share First Call A/c |
|
|
2,400 |
|
|
To Share Final Call A/c |
|
|
1,200 |
|
|
(1,200 shares of category (iii) forfeited for the non-payment amount due) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,000 |
|
|
To Equity Share Capital A/c |
|
|
2,000 |
|
|
(Loss on re-issue of 1,000 shares of category (i) charged from Share Forfeiture Account) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
600 |
|
|
To Equity Share Capital A/c |
|
|
600 |
|
|
(Loss on re-issue of 300 of category (ii) charged from Share Forfeiture Account) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
4,400 |
|
|
To Capital Reserve A/c |
|
|
4,400 |
|
|
(Balance in Share Forfeiture Account of 1,300 re-issued shares transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
Super Star Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
19,94,400 |
b. Reserves and Surplus |
2 |
4,00,600 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
23,95,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
23,95,000 |
Total |
|
23,95,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
……. Equity Shares of Rs 10 each |
- |
|
|
Issued Share Capital |
|
|
|
2,00,000 Equity Shares of Rs 10 each |
20,00,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
1,98,200 Equity Shares of Rs 10 each |
19,82,000 |
|
|
Add: Shares Forfeited (600 shares × Rs 6.66) |
4,000 |
|
|
Add: Shares Forfeited (1,200 shares × Rs 7) |
8,400 |
19,94,400 |
|
|||
2 |
Reserves and Surplus |
|
|
|
Securities Premium |
3,96,200 |
|
|
Capital Reserve |
4,400 |
4,00,600 |
|
|
|
|
3 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
23,95,000 |
|
|
|
|
Working Notes:
1. 1,200 shares of Category (ii)
Number of share allotted
Money received on application (1,200 shares × Rs 5) |
= |
6,000 |
Less: Application money transferred to Share Capital (900 shares × Rs 5) |
= |
4,500 |
Excess money received from 1,200 shares on Application |
= |
1,500 |
Money due on Allotment (900 shares × Rs 4) |
= |
3,600 |
Less: Excess money on Application |
= |
1,500 |
Calls-in-Arrears on Allotment of category (ii) |
|
2,100 |
2. Share Allotment
Money due on Allotment (2,00,000 shares × Rs 4) |
= |
8,00,000 |
Less: Excess money on Application |
= |
2,00,000 |
Less: Calls-in-Arrears 1,000 shares of category (i) (1,000 shares × Rs 4) |
= |
4,000 |
Less: Calls-in-Arrears 1,200 shares of category (ii) |
= |
2,100 |
Money received on Allotment |
= |
5,93,900 |
3. Share First Call
First Call due on 2,00,000 shares × Rs 2 |
= |
4,00,000 |
Less: Calls-in-Arrears on 3,100 shares × Rs 2 (1,000 + 900 + 1,200 shares of category (i), (ii) and (iii) respectively) |
|
(6,200) |
Money received on First Call |
|
3,93,800 |
4. Share Final Call
Money due on Share Final Call (2,00,000 – 1900) × Rs 1 |
= |
1,98,100 |
Less: Calls-in-Arrears of 1,200 shares of Category (iii) |
|
1,200 |
Money received on Final Call |
|
1,96,900 |
Capital Reserve
Calculation of Share Forfeiture of 1,000 shares of category (i)
Share Forfeiture |
Rs 5,000 |
Cr. |
Less: Share Forfeiture |
Rs 2,000 |
Dr. |
Capital Reserve of 1,000 shares (balance after re-issue) |
Rs 3,000 |
Cr. |
Calculation of Share Forfeiture of 300 shares of category (ii)
Share Forfeiture = Credit |
= |
Rs |
6.67 |
per share |
Less: Share Forfeiture Debit |
= |
Rs |
2 |
per share |
Capital Reserve (balance after re-issue) |
= |
Rs |
4.67 |
per share |
Capital Reserve of 300 shares = Capital Reserve (per share) × No. of shares re-issued = Rs 4.67 × 300 shares = Rs 1,400
Total Capital Reserve of 1,300 shares = Capital Reserve of 1,000 shares of category (i) + Capital Reserve of 300 shares of category (ii) = 3,000 + 1,400 = Rs 4,400
Page No 8.130:
Question 93:
XYZ Ltd . issued a prospectus inviting applications for 2,000 shares of â¹ 10 each at a premium of â¹ 4 per share , payable as:
On application | â¹ 6 (including â¹ 1 premium) | |
On allotment | â¹ 2 (including â¹ 1 premium) | |
On first call | â¹ 3 (including â¹ 1 premium) | |
On second and final call | â¹ 3 (including â¹ 1 premium) |
Applications were received for 3,000 shares and pro rata allotment was made on the applications for 2,400 shares. It was decided to utilise excess application money towards the amount due on allotment .
X, to whom 40 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call , his shares were forfeited.
Y, who applied for 72 shares failed to pay the two calls and on his such failure , his shares were forfeited.
Of the shares forfeited , 80 shares were sold to Z credited as fully paid-up for â¹ 9 per share , the whole of Y's shares being included . Prepare Journal , Cash Book and the Balance Sheet .
Answer:
Applied shares 3,000
Allotment made as: |
|
Payable as: |
|
|||
Applied |
|
Allotted |
|
Application |
Rs 6 |
(5 + 1) |
2,400 |
|
2,000 |
|
Allotment |
Rs 2 |
(1 + 1) |
600 |
|
NIL |
|
First Call |
Rs 3 |
(2 + 1) |
|
|
|
|
Final Call |
Rs 3 |
(2 + 1) |
3,000 |
|
2,000 |
|
|
Rs 14 |
(10 + 4) per share |
Cash Book |
|||||
Dr. |
|
|
|
|
Cr. |
Date |
Particulars |
Bank Rs |
Date |
Particulars |
Bank Rs |
|
|
|
|
|
|
|
Share Application |
18,000 |
|
Share Application |
3,600 |
|
(3,000 shares × Rs 6) |
|
|
(600 shares × Rs 6) |
|
|
Share Allotment (see note-2) |
1,568 |
|
|
|
|
Share First Call (see note-4) |
5,700 |
|
|
|
|
Share Final Call (see note-5) |
5,700 |
|
|
|
|
Share Capital |
720 |
|
Balance c/d |
28,088 |
|
(80 shares × Rs 9) |
|
|
|
|
|
|
31,688 |
|
|
31,688 |
|
|
|
|
|
|
Journal Entries |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
14,400 |
|
|
To Share Capital A/c |
|
|
10,000 |
|
|
To Securities Premium A/c |
|
|
2,000 |
|
|
To Share Allotment A/c |
|
|
2,400 |
|
|
(Share application money of 2,000 shares transferred to Share Capital and Securities Premium at Rs 5 and Re 1 each respectively and Rs 2,400 adjusted on allotment) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
4,000 |
|
|
To Share Capital A/c |
|
|
2,000 |
|
|
To Securities Premium A/c |
|
|
2,000 |
|
|
(Allotment due on 2,000 shares at Rs 2 each including Re 1 premium) |
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
6,000 |
|
|
To Share Capital A/c |
|
|
4,000 |
|
|
To Securities Premium A/c |
|
|
2,000 |
|
|
(First call due on 2,000 shares at Rs 3 each including Re 1 premium) |
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c (40 shares × Rs 8) |
Dr. |
|
320 |
|
|
Securities Premium A/c |
Dr. |
|
72 |
|
|
To Share Forfeiture A/c |
|
|
240 |
|
|
To Share Allotment A/c |
|
|
32 |
|
|
To Share First Call A/c |
|
|
120 |
|
|
(40 shares of Rs 10 each Rs 8 called with premium forfeited for non-payment of amount due) |
|
|
|
|
|
|
|
|
|
|
|
Share Final Call A/c |
Dr. |
|
5,880 |
|
|
To Share Capital A/c |
|
|
3,920 |
|
|
To Securities Premium A/c |
|
|
1,960 |
|
|
(Final call due on 1,960 shares at Rs 3 each including Re 1 premium) |
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
600 |
|
|
Securities Premium A/c |
Dr. |
|
120 |
|
|
To Share Forfeiture A/c |
|
|
360 |
|
|
To Share First Call A/c |
|
|
360 |
|
|
(60 shares forfeited for non-payment of amount due) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
720 |
|
|
Share Forfeiture A/c |
Dr. |
|
80 |
|
|
To Shares Capital A/c |
|
|
800 |
|
|
(80 shares of Rs 10 each re-issued at Rs 9 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
400 |
|
|
To Capital Reserve |
|
|
400 |
|
|
(Balance of 80 reissued shares in Share Forfeiture Account transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
XYZ Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
19,920 |
b. Reserves and Surplus |
2 |
8,168 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
28,088 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
28,088 |
Total |
|
28,088 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
……. shares of Rs 10 each |
- |
|
|
Issued Share Capital |
|
|
|
2,000 shares of Rs 10 each |
20,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
1,980 shares of Rs 10 each |
19,800 |
|
|
Add: Shares Forfeited (20 shares × Rs 6) |
120 |
19,920 |
|
|||
2 |
Reserves and Surplus |
|
|
|
Securities Premium |
7,768 |
|
|
Capital Reserve |
400 |
8,168 |
|
|
|
|
3 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
28,088 |
|
|
|
|
Working Notes:
1. X’s Shares
Number of share applied by X
Money received on application (48 shares × Rs 6) |
= |
288 |
Less: Money transferred to Shares Capital (40 shares × Rs 5) |
= |
200 |
Less: Securities Premium (40 shares × Re 1) |
= |
40 |
Excess money on application from X |
= |
48 |
Utilisation of excess application money received from X |
|
|
Share Capital due on Allotment (40 shares × Re 1) |
= |
40 |
Less: Excess money on Application from X |
= |
48 |
Excess money after adjustment of Share Capital on Allotment |
= |
8 |
|
|
|
Securities Premium due on Allotment (40 shares × Re 1) |
= |
40 |
Less: Excess money after adjustment of Share Capital on Allotment |
= |
8 |
Calls-in-Arrears of Securities Premium on Allotment |
= |
32 |
2. Share Allotment
Money due on allotment (2,000 shares × Rs 2) |
= |
4,000 |
Less: Excess money on Application |
= |
2,400 |
|
= |
1,600 |
Less: Calls-in-Arrears on X‘s shares (securities premium) |
= |
32 |
Money received on allotment |
= |
Rs 1,568 |
3. Y’s Shares
Number of shares allotted
4. Share First Call
Money due on Share First Call (2,000 shares × Rs 3) |
= |
6,000 |
Less: Calls-in-Arrears on X‘s shares (40 shares × Rs 3) |
= |
120 |
Less: Calls-in-Arrears on Y’s shares (60 shares × Rs 3) |
= |
180 |
Money received on Share First Call |
= |
5,700 |
5. Share Final Call
Money due on share Final Call (1,960 shares × Rs 3) |
= |
5,880 |
Less: Calls-in-Arrears on Y’s shares (60 shares × Rs 3) |
= |
180 |
Money received on Share Final Call |
= |
5,700 |
Capital Reserve
X’s shares
Money received from X for 40 shares |
= |
288 |
Less: Securities Premium adjusted on Application |
= |
40 |
Less: Securities Premium adjusted on Allotment |
= |
8 |
Balance in the Share Forfeiture before re-issue of shares Cr. |
|
240 |
Share Forfeiture Credit |
= |
Rs |
6 |
per share |
Share forfeiture Debit |
= |
Rs |
1 |
per share |
|
|
Rs |
5 |
per share |
Capital Reserve on re-issue of 20 shares = Rs 5 × 20 shares = Rs 100
Y’s Shares
Share Forfeiture on 60 Shares of Y
Share Forfeiture Credit |
Rs 6 |
per share |
Less: Share Forfeiture Debit |
Rs 1 |
per share |
|
Rs 5 |
per share |
Capital Reserve on re-issue of 60 shares of Y = Rs 5 × 60 shares = Rs 300
Total Capital Reserve on 80 shares = Capital Reserve on re-issue of 20 shares of X + Capital Reserve on re-issue of 60 shares of Y = 100 + 300 = Rs 400
View NCERT Solutions for all chapters of Class 15