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Page No 8.117:

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 8.117:

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 8.117:

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 8.117:

Question 4:

A 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

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

 

 

 

 

 

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 8.117:

Question 5:

The authorised capital of â‚¹ 16,00,000 of XYZ 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 Rs 10 each

Issued and Subscribed Capital 80,000 equity shares

Books of XYZ Limited

Journal

Date

Particulars

L.F.

Debit

Amount

 Rs

Credit

Amount

 Rs

 

 

 

 

 

 

Bank A/c

Dr.

 

8,00,000

 

 

To Equity Share Application A/c

 

 

8,00,000

 

(Share application money received for 8,000 Equity Shares of Rs 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 Rs 10 each transferred to Equity Share Capital Accounts)

 

 

 

 

 

 

 

 

Page No 8.117:

Question 6:

XYZ Ltd. invited applications for 10,000 shares of â‚¹ 100 each payable as follows:
    â‚¹  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 Rs 100 each

Payable as:

Rs

20

on application

Rs

30

on allotment

Rs

20

on first call

Rs

30

on final call

 

100

 

 

Books of XYZ Limited

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

 

 

 

 

 

Bank A/c

Dr.

 

2,00,000

 

 

To Share Application A/c

 

 

2,00,000

 

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

 

 

 

 

 

 

 

 

Page No 8.117:

Question 7:

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 8.117:

Question 8:

A company 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 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 Rs 100 each.

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

Issued Capital:

Equity Shares 1,000 of Rs 100 each.

Payable as

Rs 10 on Application

Rs 40 on Allotment

Rs 25 on First Call

Rs 25 on Final Call

Preference Shares 500 of Rs 100 each.

Payable as

Rs 25 on application

Rs 25 on allotment

Rs 50 on first and final call

Cash Book

Dr.

 

Cr.

Date

Particulars

L.F.

Bank

 Rs

Date

Particulars

L.F.

Bank

 Rs

 

 

 

 

 

 

 

 

 

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

Rs

Credit Amount

 Rs

 

 

 

 

 

 

Equity Share Application A/c

Dr.

 

10,000

 

 

To Equity Share Capital A/c

 

 

10,000

 

(Equity share application of 1,000 shares of Rs 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 Rs 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 Rs 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 Rs 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 Rs 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 Rs 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 Rs 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 Rs 100 each

7,50,000

 

 

25,000 9% Preference Shares of Rs 100 each

2,50,000

10,00,000

 

Issued Share Capital

 

 

 1,000 Equity Shares of Rs 100 each

1,00,000

 

 

 500 9% Preference Shares of Rs 100 each

50,000

1,50,000

 

Subscribed, Called-up and Paid-up Share Capital

 

 

 1,000 Equity Shares of Rs 100 each

1,00,000

 

 

 500 9% Preference Shares of Rs 100 each

50,000

1,50,000

 

 

 

2

Cash and Cash Equivalents

 

 

Cash at Bank

1,50,000

 

 

 



Page No 8.118:

Question 9:

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 8.118:

Question 10:

A limited company 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.
You are asked to show the entries in the company 's Journal , Cash Book  and the ledger . Also show the company's Balance Sheet oncompletion of the above transaction. 

Answer:

Issued 10,000 shares of Rs 25 each at premium of Rs 5

Applied 10,000 shares

Payable as:

Application

Rs

5

 

Allotment

Rs

10

(5 + 5)

First Call

Rs

5

 

Second Call

Rs

5

 

Final Call

Rs

5

 

 

Rs

30

(25 + 5)

 

Cash Book

Dr.

Cr.

Date

Particulars

L.F.

Bank

 Rs

Date

Particulars

L.F.

Bank

 Rs

 

 

 

 

 

 

 

 

 

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

Rs

Credit

Amount

Rs

 

 

 

 

 

 

Share Application A/c

Dr.

 

50,000

 

 

To Share Capital A/c

 

 

50,000

 

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

and Securities Premium at Rs 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 Rs 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 Rs 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 Rs 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 Rs 5 each)

 

 

 

 

 

 

 

 

 

Share Application Account

Dr.

 

Cr.

Date

Particulars

L.F.

Amount

 Rs

Date

Particulars

L.F.

Amount

Rs

 

 

 

 

 

 

 

 

 

Share Capital

 

50,000

 

Bank

 

50,000

 

 

 

 

 

 

 

 

 

 

 

50,000

 

 

 

50,000

 

 

 

 

 

 

 

 

 

Share Allotment Account

Dr.

 

Cr.

Date

Particulars

L.F.

Amount

 Rs

Date

Particulars

L.F.

Amount

Rs

 

 

 

 

 

 

 

 

 

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

Rs

Date

Particulars

L.F.

Amount

Rs

 

 

 

 

 

 

 

 

 

Share Capital

 

50,000

 

Bank

 

50,000

 

 

 

 

 

 

 

 

 

 

 

50,000

 

 

 

50,000

 

 

 

 

 

 

 

 

 

Share Second Call Account

Dr.

 

Cr.

Date

Particulars

L.F.

Amount

Rs

Date

Particulars

L.F.

Amount

Rs

 

 

 

 

 

 

 

 

 

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

Rs

Date

Particulars

L.F.

Amount

Rs

 

 

 

 

 

 

 

 

 

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

Rs

Date

Particulars

L.F.

Amount

Rs

 

 

 

 

 

 

 

 

 

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

Rs

Date

Particulars

L.F.

Amount

 Rs

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Rs

Date

Particulars

L.F.

Amount

 Rs

 

 

 

 

 

 

 

 

 

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 

(Rs)

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 

(Rs)

1

Share Capital

 

 

Authorised Share Capital

 

 

……. shares of Rs 25 each

 

Issued Share Capital

 

 

 10,000 shares of Rs 25 each

2,50,000

 

Subscribed, Called-up and Paid-up Share Capital

 

 

10,000 shares of Rs 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 8.118:

Question 11:

X 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 to the public 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,  â‚¹ 2 per share on first call and v 3 per share on final call . All the money was received . Give necessary journal entries and the Balance Sheet .

Answer:

Authorised Capital 20,000 shares of Rs 10 each

Issued Capital 2,000 shares

Applied 1,800 shares

Payable as:

 

 

 

Application

Rs

3

(2+1)

Allotment

Rs

4

(3+1)

First Call

Rs

2

 

Final Call

Rs

3

 

 

 

12

(10+2)

 

Books of X Limited

Journal 

Date

Particulars

L.F.

Debit

Amount

 Rs

Credit

Amount

 Rs

 

 

 

 

 

 

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.

X Ltd.

Balance Sheet

Particulars

Note No.

Amount

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

18,000

b. Reserves and Surplus

2

3,600

2. Non-Current Liabilities

 

 

3. Current Liabilities

 

 

Total

 

21,600

 

 

 

II. Assets

 

 

1. Non-Current Assets

 

 

2. Current Assets

 

 

a. Cash and Cash Equivalents

3

21,600

Total

 

21,600

 

 

 

NOTES TO ACCOUNTS

 

Note No.

Particulars

Amount

(Rs)

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

 

 

 

2

Reserves and Surplus

 

 

Securities Premium

3,600

   

 

3

Cash and Cash Equivalents

 

 

Cash at Bank

21,600

 

 

 

Page No 8.118:

Question 12:

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 8.118:

Question 13:

SRCC Ltd. was registered with a capital of â‚¹ 25,00,000 in shares of â‚¹ 10 each. It issued a prospectus inviting applications for 25,000 shares at 40% premium payabl;e as follows :
On application â‚¹ 5 (including â‚¹ 1 premium) , on Allotment â‚¹ 4 (including â‚¹ 1 premium) , on first call  â‚¹ 3 (including â‚¹ 1 premium) , on second and final call â‚¹ 2 (including â‚¹ 1 premium) . 
Applications were received for 25,000 shares . All money was duly received . Pass the necessary Journal entries.

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

Bank A/c (25,000×5)

Dr.

 

1,25,000

 

 

  To Equity Share Application A/c

 

 

 

1,25,000

 

( Application Money Received)

 

 

 

 

 

 

 

 

 

 

 

Equity Share Application A/c (25,000×5)

Dr.

 

1,25,000

 

 

  To Equity Share Capital A/c (25,000×4)

 

 

 

1,00,000

 

  To Security Premium Reserve A/c (25,000×1)

 

 

 

25,000

 

(Application money adjusted towards Share Capital)

 

 

 

 

 

 

 

 

 

 

 

Equity Share Allotment A/c (25,000×4)

Dr.

 

1,00,000

 

 

  To Equity Share Capital A/c (25,000×3)

 

 

 

75,000

 

  To Security Premium Reserve A/c (25,000×1)

 

 

 

25,000

 

( Allotment money due)

 

 

 

 

 

 

 

 

 

 

 

Bank A/c (25,000×4)

Dr.

 

1,00,000

 

 

   To Equity Share Allotment A/c

 

 

 

1,00,000

 

(Allotment money received)

 

 

 

 

 

 

 

 

 

 

 

 Equity Share First Call A/c (25,000×3)

Dr.

 

75,000

 

 

  To Equity Share Capital A/c (25,000×2)

 

 

 

50,000

 

  To Security Premium Reserve A/c (25,000×1)

 

 

 

25,000

 

(First call money due)

 

 

 

 

 

 

 

 

 

 

 

Bank A/c (25,000×3)

Dr.

 

75,000

 

 

  To Equity Share First Call A/c

 

 

 

75,000

 

(First call money received)

 

 

 

 

 

 

 

 

 

 

 

 Equity Share Second Call A/c (25,000×2)

Dr.

 

50,000

 

 

  To Equity Share Capital A/c (25,000×1)

 

 

 

25,000

 

  To Security Premium Reserve A/c (25,000×1)

 

 

 

25,000

 

(Second call money due)

 

 

 

 

 

 

 

 

 

 

 

 Bank A/c (25,000×2)

Dr.

 

50,000

 

 

  To Equity Share Second Call A/c

 

 

 

50,000

 

(Second call money received)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page No 8.118:

Question 14:

X Ltd. invited application for 10,000 Equity Shares of â‚¹ 10 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:

Issued Capital 10,000 shares of Rs 10 each

Applied 12,000 shares

Over-subscribed by 2,000 shares

Books of X Limited

Journal 

Date

Particulars

Debit

Amount

Rs

Credit Amount

Rs

 

 

 

 

 

Bank A/c

Dr.

1,20,000

 

 

To Share Application A/c

 

1,20,000

 

(Share Application received for 12,000 shares at Rs 10 each)

 

 

 

 

 

 

 

Share Application A/c

Dr.

1,20,000

 

 

To Share Capital A/c

 

1,00,000

 

To Bank A/c

 

20,000

 

(Application of 10,000 shares transferred to Share Capital and of 2,000 hares returned)

 

 

 

 

 

 

Page No 8.118:

Question 15:

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)