Double Entry Book Keeping Ts Grewal Vol. ii 2019 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 Double Entry Book Keeping Ts Grewal Vol. ii 2019 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 Double Entry Book Keeping Ts Grewal Vol. ii 2019 Solutions. All Double Entry Book Keeping Ts Grewal Vol. ii 2019 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 â‚¹ 50,00,000 divided into Equity Shares of â‚¹  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 â‚¹  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 â‚¹  50,00,000 divided into 5,00,000 Equity Shares of â‚¹  10 each . It has existing issued and paid up capital of â‚¹  5,00,000. It further issued to public 1,50,000 Equity Shares at par for subscription payable as under:

 On Application:     ₹ 3
 On Allotment:    â‚¹ 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:

​

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

 

 

  1. Cash and Cash Equivalents

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:

Lennova Ltd. has authorised share capital of â‚¹ 1,00,00,000  divided into 1,00,000 Equity Shares of â‚¹  100 each . It has existing issued and paid up capital of â‚¹  25,00,000. It further issued to public 25,000 Equity Shares at a premium of 20% for subscription payable as under:
 On Application:     ₹ 30
 On Allotment:    â‚¹ 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

 

 

  1. Cash and Cash Equivalents

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

 

Fully Called-up & Paid-up Capital

 

25,000 Equity Shares of Rs 100 each

25,00,000

Partially Called-up & Paid-up Capital

 

25,000 Equity Shares of Rs 100 each, 70 called-up

17,50,000

 

 

2. Reserves and Surplus

 

Securities Premium Reserve
(25,000 shares @ Rs 20 per share)

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 ₹ 50,00,000 divided into 50,000 equity shares of ₹ 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 ₹ 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 ₹100 each

 

50,00,000

   

 

 

  Issued Capital

 

 

  25,000 shares of ₹100 each

 

25,00,000

   

 

 

  Subscribed Capital

 

 

  23,750 shares of ₹100 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 â‚¹ 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
Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

 

 

 

 

 

 

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 â‚¹ 16,00,000 of Bharat Ltd. is divide into 1,60,000 Equity Shares of â‚¹ 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 ₹ 10 each

Issued and Subscribed Capital 80,000 equity shares

Books of Bharat Limited

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

 (₹)

 

 

 

 

 

 

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 ₹ 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 ₹ 10 each transferred to Equity Share Capital Accounts)

 

 

 

 

 

 

 

 

Page No 8.114:

Question 7:

Hema Ltd. invited applications for 10,000 shares of â‚¹ 100 each payable as follows:
₹  20 on application, â‚¹ 30 on allotment, â‚¹ 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 ₹ 100 each
Payable as:
 

₹ 20 on application
₹ 30 on allotment
₹ 20 on first call
₹ 30 on final call
  100  
 

Books of Hema Limited

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

 

 

 

 

 

 

Bank A/c

Dr.

 

2,00,000

 

 

To Share Application A/c

 

 

2,00,000

 

(Share application money received for 10,000 shares at ₹ 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 ₹ 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 ₹ 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 ₹ 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 ₹ 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 ₹ 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 ₹30 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 ₹ 30 per share)

 

 

 

 

 

 

 

 

Page No 8.114:

Question 8:

Marigold Ltd . was registered with the authorized capital of â‚¹ 3,00,000 divided into 3,000 shares of â‚¹ 100 each, which were offered to the public . Amount payable as â‚¹ 30  per share on application , â‚¹ 40 per share on allotment and â‚¹ 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
(₹)
Credit
Amount
(₹)
 
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

(₹)

Particulars

Amount

(₹)

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 â‚¹10,00,000 divided into 7,500 Equity Shares of â‚¹  100 each and, 2,500 Preference Shares of â‚¹100 each. 1,000 Equity Shares and 500; 9% Preference Shares were offered to public on the following terms – Equity Shares payable ₹10 on application, â‚¹40 on allotment and the balance in two calls of â‚¹  25 each. Preference Shares are payable â‚¹ 25 on application, â‚¹ 25 on allotment and â‚¹50 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 ₹ 100 each.

9% Preference Shares 2,500 of ₹ 100 each.

Issued Capital:

Equity Shares 1,000 of ₹ 100 each.

Payable as

₹ 10 on Application

₹ 40 on Allotment

₹ 25 on First Call

₹ 25 on Final Call

Preference Shares 500 of ₹ 100 each.

Payable as

₹ 25 on application

₹ 25 on allotment

₹ 50 on first and final call

Books of Modern Marbles Limited
Cash Book

Dr.

 

Cr.

Date

Particulars

L.F.

Bank

(₹)

Date

Particulars

L.F.

Bank

(₹)

 

 

 

 

 

 

 

 

 

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

(₹)

Credit Amount

 (₹)

 

 

 

 

 

 

Equity Share Application A/c

Dr.

 

10,000

 

 

To Equity Share Capital A/c

 

 

10,000

 

(Equity share application of 1,000 shares of ₹ 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 ₹ 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 ₹ 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 ₹ 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 ₹ 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 ₹ 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 ₹ 25 each)

 

 

 

 

 

 

 

 


Balance Sheet

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 ₹ 100 each

7,50,000

 

 

25,000 9% Preference Shares of ₹ 100 each

2,50,000

10,00,000

 

Issued Share Capital

 

 

 1,000 Equity Shares of ₹ 100 each

1,00,000

 

 

 500 9% Preference Shares of ₹ 100 each

50,000

1,50,000

 

Subscribed, Called-up and Paid-up Share Capital

 

 

 1,000 Equity Shares of ₹ 100 each

1,00,000

 

 

 500 9% Preference Shares of ₹ 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 â‚¹ 10 each at a premium of â‚¹ 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 â‚¹ 25 each, payable â‚¹ 5 per share on application, â‚¹ 10 per share on allotment (including â‚¹ 5 per share as premium), â‚¹ 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 ₹ 25 each at premium of ₹ 5

Applied 10,000 shares

Payable as:

Application

₹

5

 

Allotment

₹

10

(5 + 5)

First Call

₹

5

 

Second Call

₹

5

 

Final Call

₹

5

 

 

₹

30

(25 + 5)

 

Books of Seema Limited
Cash Book

Dr.

Cr.

Date

Particulars

L.F.

Bank

 (₹)

Date

Particulars

L.F.

Bank

 (₹)

 

 

 

 

 

 

 

 

 

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

(₹)

Credit

Amount

(₹)

 

 

 

 

 

 

Share Application A/c

Dr.

 

50,000

 

 

To Share Capital A/c

 

 

50,000

 

(Application money of 10,000 shares of ₹ 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 ₹ 5 each

and Securities Premium at ₹ 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 ₹ 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 ₹ 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 ₹ 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 ₹ 5 each)

 

 

 

 

 

 

 

 

 

Share Application Account

Dr.

 

Cr.

Date

Particulars

L.F.

Amount

 (₹)

Date

Particulars

L.F.

Amount

(₹)

 

 

 

 

 

 

 

 

 

Share Capital

 

50,000

 

Bank

 

50,000

 

 

 

 

 

 

 

 

 

 

 

50,000

 

 

 

50,000

 

 

 

 

 

 

 

 

 

Share Allotment Account

Dr.

 

Cr.

Date

Particulars

L.F.

Amount

 (₹)

Date

Particulars

L.F.

Amount

(₹)

 

 

 

 

 

 

 

 

 

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

(₹)

Date

Particulars

L.F.

Amount

(₹)

 

 

 

 

 

 

 

 

 

Share Capital

 

50,000

 

Bank

 

50,000

 

 

 

 

 

 

 

 

 

 

 

50,000

 

 

 

50,000

 

 

 

 

 

 

 

 

 

Share Second Call Account

Dr.

 

Cr.

Date

Particulars

L.F.

Amount

(₹)

Date

Particulars

L.F.

Amount

(₹)

 

 

 

 

 

 

 

 

 

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

(₹)

Date

Particulars

L.F.

Amount

(₹)

 

 

 

 

 

 

 

 

 

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

(₹)

Date

Particulars

L.F.

Amount

(₹)

 

 

 

 

 

 

 

 

 

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

(₹)

Date

Particulars

L.F.

Amount

 (₹)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(₹)

Date

Particulars

L.F.

Amount

 (₹)

 

 

 

 

 

 

 

 

 

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 

(₹)

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 

(₹)

1

Share Capital

 

 

Authorised Share Capital

 

 

……. shares of ₹ 25 each

 

Issued Share Capital

 

 

 10,000 shares of ₹ 25 each

2,50,000

 

Subscribed, Called-up and Paid-up Share Capital

 

 

10,000 shares of ₹ 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 â‚¹ 2,00,000 divided into shares of â‚¹ 10 each. 2,000 shares were offered for subscription and out of these, 1,800 shares were applied for and allotted. ₹ 3 per share (including â‚¹ 1 premium) was payable on application, â‚¹ 4 per share (including â‚¹ 1 premium) on allotment, ₹ 2 per share on first call and ₹ 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 ₹ 10 each

Issued Capital 2,000 shares

Applied 1,800 shares

Payable as:

 

 

 

Application

₹

3

(2+1)

Allotment

₹

4

(3+1)

First Call

₹

2

 

Final Call

₹

3

 

 

 

12

(10+2)

 

Books of Bharat Limited

Journal 

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

 

 

 

 

 

 

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

(₹)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

18,000

 

   


NOTES TO ACCOUNTS

 

Note No.

Particulars

Amount

(₹)

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 â‚¹ 45,00,000 divided into 30,000 shares of â‚¹ 150 each . Out of these  company issued 15,000 shares of â‚¹ 150 each at a premium of â‚¹ 10 per share . the amount was payable as follows:
₹ 50 per share on application , â‚¹ 40 per share on allotment (including premium ), â‚¹ 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 ₹ 100 each. The application money received @ ₹ 30 per share was ₹ 27,00,000. Name the kind of subscription. List the three alternatives for allotting these shares.

Answer:

Total Money Received on Application = ₹ 27,00,000
Application money per share = ₹ 30
Number of shares applied by the public=Total Appliaction money ReceivedApplication money per share=27,00,00030=90,000 shares

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 ₹ 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 (₹)

Credit Amount (₹)

  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 â‚¹ 10 each payable â‚¹ 3 on application , â‚¹ 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 (60,000×3)

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 (50,000×3)

 

 

 

    1,50,000

 

  To Bank A/c (10,000×3)

 

 

 

30,000

 

(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

Dr.

 

2,00,000

 

 

  To Share Allotment A/c

 

 

 

2,00,000

 

(Allotment received)

 

 

 

 

 

 

 

 

 

 

 

Share First and Final Call A/c (50,000×3)

Dr.

 

1,50,000

 

 

  To Share Capital A/c

 

 

 

1,50,000

 

(Call money due on 50,000 shares)

 

 

 

 

 

 

 

 

 

 

 

Bank A/c (49,500×3)

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 â‚¹ 10 each payable â‚¹ 3 on application, ₹ 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 ₹ 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:

₹

3

on application

₹

5

on allotment

 

8

Called-up

 

Books of Arti Limited
Cash Book

Dr.

 

Cr.

Date

Particulars

L.F.

Bank

(₹)

Date

Particulars

L.F.

Bank

(₹)

 

 

 

 

 

 

 

 

 

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