Double Entry Book Keeping Ts Grewal (2017) Solutions for Class 12 Commerce Accountancy Chapter 6 Joint Stock Company Accounts Issue Of Shares are provided here with simple step-by-step explanations. These solutions for Joint Stock Company Accounts Issue Of Shares are extremely popular among class 12 Commerce students for Accountancy Joint Stock Company Accounts Issue Of Shares Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Double Entry Book Keeping Ts Grewal (2017) Book of class 12 Commerce Accountancy Chapter 6 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Double Entry Book Keeping Ts Grewal (2017) Solutions. All Double Entry Book Keeping Ts Grewal (2017) Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.

Page No 6.113:

Answer:

Balance Sheet of Gopal Ltd.
as at ……
Particulars
Note No.
Amount
(Rs)
I. Equity and Liabilities    
1. Shareholders’ Funds       
   
a. Share Capital
1
45,00,000
Total
 
45,00,000
     
 
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
 
5,00,000 Equity Shares of Rs 10 each
50,00,000
Subscribed Capital
 
Subscribed and fully paid-up
 
4,50,000 Equity Shares of Rs 10 each
45,00,000
   

Page No 6.113:

Answer:

Balance Sheet of Daily Needs Stores Ltd
as at …..
Particulars
Note No.
Amount
(Rs)
I. Equity and Liabilities    
1. Shareholders’ Funds
   
a. Share Capital
1
13,00,000
Total
 
13,00,000
     
 
Notes to Accounts
 
Particulars
Amount
(Rs)
1. Share Capital
 
Authorised Share Capital
 
1,00,000 Equity Shares of Rs 10 each
10,00,000
10,000, 10% Preference Shares of Rs 100 each
10,00,000
Issued Share Capital
 
75,000, Equity Shares of Rs 10 each
7,50,000
10,000, 10% Preference Shares of Rs 100 each
10,00,000
Subscribed Capital
 
Subscribed and fully paid-up
 
50,000, Equity Shares of Rs 10 each
5,00,000
Subscribed but not fully paid-up
 
10,000, 10% Preference Shares of Rs 100 each, Rs 80 called up
8,00,000
 
13,00,000
 
 

Page No 6.113:

Answer:

Balance Sheet of Moon Ltd.
as at ……
Particulars
Note No.
Amount
(Rs)
I. Equity and Liabilities    
1. Shareholders’ Funds
   
a. Share Capital
1
19,40,000
        Total  
19,40,000
     
 
Notes to Accounts
 
Particulars
Amount
(Rs)
1. Share Capital  
Authorised Share Capital
 
3,00,000 Equity Shares of Rs 10 each
30,00,000
Issued Share Capital
 
2,00,000 Equity Shares of Rs 10 each
20,00,000
Subscribed Share Capital
 
Subscribed and fully paid-up
 
1,70,000 Equity Shares of Rs 10 each
17,00,000
Subscribed but not fully paid-up
 
30,000 Equity Shares of Rs 10 each
3,00,000
2,40,000
  Less: Calls-in-arrears
60,000
 
 
19,40,000
   

Page No 6.113:

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2016
         
Apr. 30
Bank A/c
Dr.
 
20,00,000
 
 
To Equity Share Application  & Allotment A/c    
20,00,000
 
(Application money received on 2,00,000 shares)      
 
         
May 15
Equity Share Application & Allotment A/c
Dr.
 
20,00,000
 
 
To Equity Share Capital A/c      
20,00,000
 
(Application money transferred to share capital account)      
         

Page No 6.113:

Answer:

Cash Book (With Bank Column Only)
Dr. Cr.
Date
Particulars
L.F.
Amount
(Rs)
Date
Particulars
L.F.
Amount
(Rs)
  Equity Share Application A/c
 
60,000
  Balance c/d
 
1,62,000
  Equity Share Allotment A/c
 
60,000
   
 
 
  Equity Share Calls-in-Advance A/c
 
4,000
   
 
 
  Equity Share First Call A/c
 
38,000
   
 
 
   
 
1,62,000
   
 
1,62,000
   
 
 
   
 
 
 
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
 
Equity Share Application  A/c
Dr.
 
60,000
 
 
  To Equity Share Capital A/c
 
 
 
60,000
 
(Application money transferred to share capital)
 
 
 
 
 
 
 
 
 
 
 
Equity Share Allotment A/c
Dr.
 
60,000
 
 
  To Equity Share Capital A/c
 
 
 
60,000
 
(Allotment money due)
 
 
 
 
 
 
 
 
 
 
 
Equity Share First Call  A/c
Dr.
 
40,000
 
      To Equity Share Capital A/c       40,000
  (First call money due on 19,000 shares)        
           
 
 Calls-in-Advance A/c
Dr.
 
2,000
 
 
     To Equity Share First Call  A/c
 
 
 
2,000
  (First call amount is received in advance on 1,000 shares)        
     
 
 
 
Balance Sheet of C Ltd.
as at …
Particulars
Note
No.
Amount
(Rs)
I. Equity and Liabilities
 
 
1. Shareholders’ Funds
 
 
Share Capital
1
1,60,000
2. Current Liabilities
 
 
Other Current Liabilities
2
2,000
Total
 
1,62,000
II. Assets
 
 
Current Assets
 
 
 Cash and Cash Equivalents
3
1,62,000
Total
 
1,62,000
 
 
 
 
Notes to Accounts
 
Particulars
Amount
(Rs)
1. Share Capital  
Authorised Share Capital
 
xxx Equity Shares of Rs 10 each
xxx
Issued Share Capital
 
20,000 Equity Shares of Rs 10 each
2,00,000
Subscribed Share Capital
 
Subscribed but not fully paid-up
 
20,000 shares of Rs 10 each, Rs 8 called-up
1,60,000
   
2. Other Current Liabilities  
Calls-in-advance
2,000
   
3. Cash and Cash Equivalents  
Cash at Bank
1,62,000
   

Page No 6.113:

Answer:

Cash Book (Bank Column)

Dr.

 

Cr.

Date

Particulars

L.F.

Bank

(Rs)

Date

Particulars

L.F.

Bank

(Rs)

 

Equity Share Application A/c

 

1,60,000

 

Balance c/d

 

3,95,500

 

Equity Share Allotment A/c

 

1,20,000

 

 

 

 

 

Equity Share First & Final Call A/c

 

1,15,500

 

 

 

 

 

 

 

3,95,500

 

 

 

3,95,500

 

 

 

 

 

 

 

 

 

 Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

Equity Share Application A/c

Dr.

 

1,60,000

 

 

   To Equity Share Capital A/c

 

 

 

1,60,000

 

(Application money transferred to share capital account)

 

 

 

 

 

 

 

 

 

 

Equity Share Allotment A/c

Dr.

 

1,20,000

 

 

  To Equity Share Capital A/c

 

 

 

1,20,000

 

(Allotment amount due on 40,000 shares

@ Rs 3 each)

 

 

 

 

 

 

 

 

 

 

 

Equity Share First and Final Call A/c

Dr.

 

1,20,000

 

 

   To Equity Share Capital A/c

 

 

 

1,20,000

 

(First and final call due on 40,000 shares

@ Rs 3 each)

 

 

 

 

 

 

 

 

 

Calls-in-Arrears A/c

Dr.

 

4,500

 

 

    To Equity Share First and Final Call A/c

 

 

4,500

 

 

 

 

 

 

 

Balance Sheet

as at ...

Particulars

Note No.

Amount 

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

3,95,500

b. Reserves and Surplus

 

 

2. Non-Current Liabilities

 

 

3. Current Liabilities

 

 

Total

 

3,95,500

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

2. Current Assets

 

 

  1. Cash and Cash Equivalents

2

3,95,500

Total

 

3,95,500

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount 

(Rs)

1

Share Capital

 

 

  Authorised Share Capital

 

 

   … Equity Shares of Rs 10 each

xxx

 

 

 

 

    Issued Share Capital

 

 

  40,000 Equity Shares of Rs 10 each

4,00,000

 

 

 

 

   Subscribed, Called-up and Paid-up Share Capital

 

 

    40,000 shares of Rs 10 each

4,00,000

 

 

   Less: Calls-in-Arrears

4,500

3,95,500

 

 

 

2

Cash and Cash Equivalents

 

 

Cash at Bank

3,95,500

 

 

 

 

 

 

 



Page No 6.114:

Answer:

Authorised Capital:
Equity Shares 7,50,000 of Rs 100 each
9% Preference Shares 2,50,000 of Rs 100 each
Issued Capital:
Equity Shares 1,00,000 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 50,000 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
 
10,00,000
 
 
 
 
 
Preference Share Application
 
12,50,000
 
 
 
 
 
Equity Share Allotment
 
40,00,000
 
 
 
 
 
Preference Share Allotment
 
12,50,000
 
 
 
 
 
Equity Share First Call
 
25,00,000
 
 
 
 
 
Preference Share First and Final Call
 
25,00,000
 
 
 
 
 
Equity Share Final Call
 
25,00,000
 
Balance c/d
 
1,50,00,000
 
 
 
 
 
 
 
 
 
 
 
1,50,00,000
 
 
 
1,50,00,000
 
 
 
 
 
 
 
 
 
Journal
 
Particulars
L.F.
Debit
Amount
Rs
Credit Amount
 Rs
 
 
 
 
 
 
Equity Share Application A/c
Dr.
 
10,00,000
 
 
To Equity Share Capital A/c
 
 
10,00,000
 
(Equity share application of 1,00,000 shares of Rs 10 each transferred to Equity Share Capital Account)
 
 
 
 
 
 
 
 
 
Preference Share Application A/c
Dr.
 
12,50,000
 
 
To 9% Preference Share Capital A/c
 
 
12,50,000
 
(Preference share applications of 50,000 shares Rs 25 each transferred to 9% Preference Share Capital Account)
 
 
 
 
 
 
 
 
 
Equity Share Allotment A/c
Dr.
 
40,00,000
 
 
To Equity Share Capital A/c
 
 
40,00,000
 
(Equity share allotment due on 1,00,000 shares at Rs 40 each)
 
 
 
 
 
 
 
 
 
Preference Share Allotment A/c
Dr.
 
12,50,000
 
 
To 9% Preference Share Capital A/c
 
 
12,50,000
 
(Preference share allotment due on 50,000 shares at Rs 25 each)
 
 
 
 
 
 
 
 
 
Equity Share First Call A/c
Dr.
 
25,00,000
 
 
To Equity Share Capital A/c
 
 
25,00,000
 
(Equity share first call due on 1,00,000 shares at Rs 25 each)
 
 
 
 
 
 
 
 
 
Preference Share First and Final Call A/c
Dr.
 
25,00,000
 
 
To 9% Preference Share Capital A/c
 
 
25,00,000
 
(Preference share first and final call due on 50,000 shares at Rs 50 each)
 
 
 
 
 
 
 
 
 
Equity Share Final Call A/c
Dr.
 
25,00,000
 
 
To Equity Share Capital A/c
 
 
25,00,000
 
(Equity share final call due on 1,00,000 shares at Rs 25 each)
 
 
 
 
 
 
 
 

As per the Schedule III of the Companies Act, 2013, 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
1,50,00,000
2. Non-Current Liabilities
 
 
3. Current Liabilities
 
 
Total
 
1,50,00,000
 
 
 
II. Assets
 
 
1. Non-Current Assets
 
 
2. Current Assets
 
 
a. Cash and Cash Equivalents
2
1,50,00,000
Total
 
1,50,00,000
 
 
 

NOTES TO ACCOUNTS
 
Note No.
Particulars
Amount
(Rs)
1
Share Capital
 
 
Authorised Share Capital
 
 
7,50,000 Equity Shares of Rs 100 each
7,50,00,000
 
 
2,50,000 9% Preference Shares of Rs 100 each
2,50,00,000
10,00,00,000
 
Issued Share Capital
 
 
 1,00,000 Equity Shares of Rs 100 each
1,00,00,000
 
 
 50,000 9% Preference Shares of Rs 100 each
50,00,000
1,50,00,000
 
Subscribed, Called-up and Paid-up Share Capital
 
 
 1,00,000 Equity Shares of Rs 100 each
1,00,00,000
 
 
 500 9% Preference Shares of Rs 100 each
50,00,000
1,50,00,000
 
 
 
2
Cash and Cash Equivalents
 
 
Cash at Bank
1,50,00,000
 
 
 

Page No 6.114:

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(a)

Bank A/c (2,00,000×15)

 

Dr.

 

30,00,000

 

 

  To Share Application and Allotment  A/c

 

 

 

30,00,000

 

(Application Money Received for 2,00,000 Shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Application and Allotment  A/c

Dr.

 

30,00,000

 

 

  To Share Capital A/c 

 

 

 

 

20,00,000

 

  To Security Premium Reserve A/c

 

 

 

10,00,000

 

 (Application money Transferred to Capital A/c)

 

 

 

 

 

 

 

 

 

 

 

 

(b)

Bank A/c (2,00,000×8)

 

Dr.

 

16,00,000

 

 

  To Share Application A/c

 

 

 

 

16,00,000

 

(Application Money Received for 2,00,000 Shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Application A/c

 

Dr.

 

16,00,000

 

 

   To Share Capital A/c 

 

 

 

 

6,00,000

 

   To Security Premium Reserve A/c

 

 

 

10,00,000

 

 (Application money Transferred to Capital A/c)

 

 

 

 

 

 

 

 

 

 

 

 

 

Share allotment A/c (2,00,000×3)

 

Dr.

 

6,00,000

 

 

   To Share Capital A/c

 

 

 

 

6,00,000

 

(Allotment money made due for 2,00,000 Shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank A/c

 

Dr.

 

6,00,000

 

 

   To Share Allotment A/c

 

 

 

 

6,00,000

 

(Allotment money received as Rs 3 per Share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 Share First and Final Call A/c (2,00,000×4)

  Dr  

8,00,000

 
 

  To Share Capital A/c
(First call money made due for 2,00,000 Shares)

       

8,00,000

             
 

Bank A/c

  Dr   8,00,000  
 

  To Share First and Final Call A/c

        8,00,000
  (First Call Received as Rs 4 per Share)          
             

(c)

Bank A/c (2,00,000×3)

 

Dr.

 

6,00,000

 

 

  To Share Application A/c

 

 

 

 

6,00,000

 

(Application Money Received for 2,00,000 Shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Application A/c

 

Dr.

 

6,00,000

 

 

  To Share Capital A/c 

 

 

 

 

6,00,000

 

 (Application money Transferred to Capital A/c)

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Allotment A/c (2,00,000×8)

 

Dr.

 

16,00,000

 

 

  To Share Capital A/c

 

 

 

 

6,00,000

 

  To Security Premium Reserve A/c

 

 

 

10,00,000

 

(Allotment money made due along with the premium)

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank A/c

 

Dr.

 

16,00,000

 

 

   To Share Allotment A/c

 

 

 

 

16,00,000

 

(Allotment money received for 2,00,000 Shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 Share First and Final Call A/c (2,00,000×4)

 

Dr.

 

8,00,000

 

 

  To Share Capital A/c

 

 

 

 

8,00,000

 

(First call money made due for 2,00,000 Shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank A/c

 

Dr.

 

8,00,000

 

 

  To Share First and Final Call A/c

 

 

 

 

8,00,000

 

(First Call Received as Rs 4 per Share)

 

 

 

 

 

 

 

 

 

 

 

 

(d)

Bank A/c (2,00,000×3)

 

Dr.

 

6,00,000

 

 

  To Share Application A/c

 

 

 

 

6,00,000

 

(Application Money Received for 2,00,000 Shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Application A/c

 

Dr.

 

6,00,000

 

 

   To Share Capital A/c 

 

 

 

 

6,00,000

 

 (Application money Transferred to Capital A/c)

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Allotment A/c (2,00,000×6)

 

Dr.

 

12,00,000

 

 

  To Share Capital A/c

 

 

 

 

6,00,000

 

  To Security Premium Reserve A/c

 

 

 

6,00,000

 

(Allotment money made due along with the premium)

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank A/c

 

Dr.

 

12,00,000

 

 

   To Share Allotment A/c

 

 

 

 

12,00,000

 

(Allotment money received for 2,00,000 Shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 Share First and Final Call A/c (2,00,000×6)

 

Dr.

 

12,00,000

 

 

  To Share Capital A/c

 

 

 

 

8,00,000

 

  To Security Premium Reserve A/c

 

 

 

4,00,000

 

(First Call money made due along with the premium)

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank A/c

 

Dr.

 

12,00,000

 

 

  To Share First and Final Call A/c

 

 

 

 

12,00,000

 

(First Call money received for 2,00,000 Shares)

 

 

 

Page No 6.114:

Answer:

Authorised capital 1,00,000 shares of Rs 10 each
 

Issued Shares
40,000
Less: Applied Shares
60,000
Over-subscribed Shares
(20,000)

Payable as:
Application
Rs
2
 
Allotment
Rs
5
(3 + 2)
First Call
Rs
3
 
Final Call
Rs
2
 
 
 
12
(10 + 2) per share
 
Books of ABC Ltd.
Journal
Date
Particulars
L.F.
Debit Amount
 Rs
Credit Amount
 Rs
 
 
 
 
 
 
Bank A/c
Dr.
 
1,20,000
 
 
To Share Application A/c
 
 
1,20,000
 
(Share application money received for 60,000 shares at Rs 2 each)
 
 
 
 
 
 
 
 
 
Share Application A/c
Dr.
 
1,20,000
 
 
To Share Capital A/c
 
 
80,000
 
To Bank A/c
 
 
40,000
 
(Share application of 4,000 shares transferred to Share Capital and money of 20,000 over-subscribed shares refunded)
 
 
 
 
 
 
 
 
 
Share Allotment A/c
Dr.
 
2,00,000
 
 
To Share Capital A/c
 
 
1,20,000
 
To Securities Premium A/c
 
 
80,000
 
(Allotment due on 40,000 shares at Rs 5 per share including Rs 2 securities premium)
 
 
 
 
 
 
 
 
 
Bank A/c
Dr.
 
2,00,000
 
 
To Share Allotment A/c
 
 
2,00,000
 
(Allotment money received)
 
 
 
 
 
 
 
 
 
Share First Call A/c
Dr.
 
1,20,000
 
 
To Share Capital A/c
 
 
1,20,000
 
(First call due on 40,000 shares at Rs 3 each)
 
 
 
 
 
 
 
 
 
Bank A/c
Dr.
 
1,20,000
 
 
To Share First Call A/c
 
 
1,20,000
 
(First call money received )
 
 
 
 
 
 
 
 
 
Share Final Call A/c
Dr.
 
80,000
 
 
To Share Capital
 
 
80,000
 
(Final call due on 40,000 shares at Rs 2 each)
 
 
 
 
 
 
 
 
 
Bank A/c
Dr.
 
80,000
 
 
To Share Final Call A/c
 
 
80,000
 
(Final call money received)
 
 
 
 
 
 
 
 

As per the Schedule III of Companies Act 2013, the Company's Balance Sheet is presented as follows.
 
ABC Ltd.
Balance Sheet
Particulars
Note No.
Amount 
(Rs)
I. Equity and Liabilities
 
 
1. Shareholders’ Funds
 
 
a. Share Capital
1
4,00,000
b. Reserves and Surplus
2
80,000
2. Non-Current Liabilities
 
 
3. Current Liabilities
 
 
Total
 
4,80,000
 
 
 
II. Assets
 
 
1. Non-Current Assets
 
 
2. Current Assets
 
 
a. Cash and Cash Equivalents
3
4,80,000
Total
 
4,80,000
 
 
 

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
 
 
 40,000 shares of Rs 10 each
4,00,000
 
Subscribed, Called-up and Paid-up Share Capital
 
 
 40,000 shares of Rs 10 each
4,00,000
 
 
 
2
Reserves and Surplus
 
 
Securities Premium
80,000
   
 
3
Cash and Cash Equivalents
 
 
Cash at Bank
4,80,000
 
 
 

Page No 6.114:

Answer:

Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
  Bank A/c (63,000 × 4)
Dr.
 
2,52,000
 
   To Equity Share Application A/c      
2,52,000
  (Application money received on 63,000 shares)      
           
  Equity Share Application A/c
Dr.
 
2,52,000
 
    To Bank A/c (WN)      
46,000
    To Equity Share Capital A/c  (WN)      
2,00,000
    To Equity Share Allotment A/c (WN)      
6,000
  (Application money adjusted)        
           
  Equity Share Allotment A/c (50,000 × 6)
Dr.
 
3,00,000
 
    To Equity Share Capital A/c (50,000 × 4)    
2,00,000
    To Securities Premium Reserve A/c (50,000 × 2)    
1,00,000
  (Allotment money due on 50,000 shares)      
           
  Bank A/c
Dr.
 
2,94,000
 
     To Equity Share Allotment A/c (3,00,000 – 6,000)    
2,94,000
  (Allotment money received)        
           
   Equity Share Final Call A/c (50,000 × 4)
Dr.
 
2,00,000
 
    To Equity Share Capital A/c (50,000 × 2)      
1,00,000
    To Securities Premium Reserve A/c (50,000 × 2)    
1,00,000
  (First call money due on 50,000 shares)        
           
  Bank A/c
Dr.
 
2,00,000
 
    To Equity Share Final call A/c      
2,00,000
  (Final call money received)        
         
 
Balance Sheet
as at 31st March 2014
Particulars
Note No.
Amount
(Rs)
I. Equity and Liabilities    
1. Shareholders’ Funds       
   
a. Share Capital
1
5,00,000
       b. Reserves & Surplus 2 2,00,000
Total
 
7,00,000
     
 
Notes to Accounts  
Particulars
Amount
(Rs)
1. Share Capital  
Authorised Share Capital
 
50,000 Equity Shares of Rs 10 each
5,00,000
Issued Share Capital
 
50,000 Equity Shares of Rs 10 each
5,00,000
Subscribed Capital
 
50,000 Equity Shares of Rs 10 each
5,00,000
   
2. Reserves and Surplus  
    Securities Premium Reserve 2,00,000
 
 Working Notes: Computation Table
 
Category
Shares
Applied
Shares
Allotted
App. money received
@ Rs 4 each
Amount trsfd. to Share Capital Account @ Rs 4 each
Excess
money 
Excess money (utilised on allotment)
Money refunded
I
12,000
1,000
48,000
4,000
44,000
6,000
38,000
II
2,000
8,000
8,000
8,000
III
49,000
49,000
1,96,000
1,96,000
Total 
63,000
50,000
2,52,000
2,00,000
52,000
6,000
46,000

Page No 6.114:

Answer:

Amount payable as:

Application
Rs
10
 
Allotment
Rs
50
(40 + 10)
First and Final Call
Rs
60
(50 + 10)
 
 
120
(100 + 20)
 
Books of X Company
Journal
Date
Particulars
L.F.
Debit
Amount
 Rs
Credit
Amount
 Rs
 
 
 
 
 
 
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
 
X 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
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
(Rs)
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
@ Rs 10 each
Money transferred to Share Capital
@ Rs 10 each
Excess
Allotment due
 @ Rs 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 × Rs 50)
5,00,000
Less: Excess application money adjusted on allotment
50,000
Money received on Allotment
4,50,000



Page No 6.115:

Answer:

 Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

Bank A/c

Dr.

 

12,50,000

 

 

  To Share Application A/c

 

 

 

12,50,000

 

(Application money received on 2,50,000 shares

 @ Rs 5 each)

 

 

 

 

 

 

 

 

 

 

Share Application A/c

Dr.

 

12,50,000

 

 

   To Share Capital A/c

 

 

 

5,00,000

 

   To Share Allotment A/c

 

 

 

5,00,000

 

   To Share First and Final Call A/c

 

 

 

1,50,000

 

   To Bank A/c

 

 

 

1,00,000

 

(Application money transferred to Share Capital Account along with adjustment and refund of excess money)

 

 

 

 

 

 

 

 

 

 

 

Share Allotment A/c

Dr.

 

5,00,000

 

 

   To Share Capital A/c

 

 

 

3,00,000

 

   To Securities Premium A/c

 

 

 

2,00,000

 

(Allotment money due on 1,00,000 shares

@ Rs 5 each)

 

 

 

 

 

 

 

 

 

 

 

Share First & Final Call A/c

Dr.

 

2,00,000

 

 

   To Share Capital A/c

 

 

 

2,00,000

 

(Amount due on first and final call @ Rs 2 each)

 

 

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

50,000

 

 

   To Share First & Final Call A/c

 

 

 

50,000

 

(Amount received on first and final call)

 

 

 

 

 

 

 

 

 

Working Notes:

Computation Table

Categories

Shares  Applied

 

Shares Allotted

 

Money received on Application

@ Rs 5 each

Money transferred to Share Capital

@ Rs 5 each

Excess Application money

Amount adjusted on Allotment

@ Rs 5

Amount adjusted on First and Final Call 

 

Money refunded

I

2,30,000

1,00,000

11,50,000

5,00,000

6,50,000

5,00,000

1,50,000

Nil

II

20,000

Nil

1,00,000

Nil

1,00,000

 

 

1,00,000

 

2,50,000

1,00,000

12,50,000

5,00,000

7,50,000

5,00,000

1,50,000

1,00,000

 

 

 

 

 

 

 

 

 

 

Page No 6.115:

Answer:

Balance Sheet of Herbal Ltd.
as at ...
Particulars
Note No.
Amount 
(Rs)
I. Equity and Liabilities    
1. Shareholders’ Funds
   
a. Share Capital
1
8,00,000
2. Non-Current Liabilities
   
3. Current Liabilities
 
 
Total
 
8,00,000
II. Assets
 
 
1. Non-Current Assets
 
 
2. Current Assets
 
 
Total
 
 
 
   
 
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