Chapter 8 from Textbook Double Entry Book Keeping Ts Grewal (2016) for Class 12 ACCOUNTANCY

Question 1:

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

Question 2:

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

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

Question 3:

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

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

Question 4:

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

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)

Question 5:

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)

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

Question 6:

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

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
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

Question 7:

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
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

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

Question 8:

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

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

Question 9:

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

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)

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

Question 10:

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)

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

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

Question 11:

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

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

Question 12:

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

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

*NOTES TO ACCOUNTS*
Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	1,25,000 Equity Shares of Rs 10 each	12,50,000
	Issued Share Capital
	80,000 Equity Shares of Rs 10 each
	(It includes 40,000 already issued shares and 40,000 issued for consideration other than cash)	8,00,000
	Subscribed, Called-up and Paid-up Share Capital
	80,000 Equity Shares of Rs 10 each, fully called up and paid up (Including already issued and issued for consideration other than cash)	8,00,000

Question 13:

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

*NOTES TO ACCOUNTS*
Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	1,25,000 Equity Shares of Rs 10 each	12,50,000
	Issued Share Capital
	80,000 Equity Shares of Rs 10 each
	(It includes 40,000 already issued shares and 40,000 issued for consideration other than cash)	8,00,000
	Subscribed, Called-up and Paid-up Share Capital
	80,000 Equity Shares of Rs 10 each, fully called up and paid up (Including already issued and issued for consideration other than cash)	8,00,000

Answer:

Journal
In the books of Rajat Ltd.
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	*Common entry for all cases*
	Sundry Assets A/c	Dr.		10,00,000
	To Modern Stores				10,00,000
	(Business of Modern Stores taken over by Rajat Ltd.)

*Case a)*	Shares issued at par
	Modern Stores	Dr.		10,00,000
	To Equity Share Capital A/c				10,00,000
	(10,000 shares issued at par)

*Case b)*	Shares issued at premium
	Modern Stores	Dr.		10,00,000
	To Equity Share Capital A/c (8,333 × 100)				8,33,300
	To Securities Premium Reserve A/c (8,333 × 20)				1,66,660
	To Cash A/c				40
	(8,333 shares issued at premium)

Working Notes: Calculation of number of shares issued to Modern Stores

\begin{array}{l} a) At par = \frac{10, 00, 000}{100} = 10, 000 shares \\ b) A t p r e m i u m = \frac{10, 00, 000}{120 (100 + 20)} = 8, 333.33 s h a r e s \end{array}

Question 14:

Journal
In the books of Rajat Ltd.
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	*Common entry for all cases*
	Sundry Assets A/c	Dr.		10,00,000
	To Modern Stores				10,00,000
	(Business of Modern Stores taken over by Rajat Ltd.)

*Case a)*	Shares issued at par
	Modern Stores	Dr.		10,00,000
	To Equity Share Capital A/c				10,00,000
	(10,000 shares issued at par)

*Case b)*	Shares issued at premium
	Modern Stores	Dr.		10,00,000
	To Equity Share Capital A/c (8,333 × 100)				8,33,300
	To Securities Premium Reserve A/c (8,333 × 20)				1,66,660
	To Cash A/c				40
	(8,333 shares issued at premium)

Working Notes: Calculation of number of shares issued to Modern Stores

\begin{array}{l} a) At par = \frac{10, 00, 000}{100} = 10, 000 shares \\ b) A t p r e m i u m = \frac{10, 00, 000}{120 (100 + 20)} = 8, 333.33 s h a r e s \end{array}

Answer:

Books of Rajan Ltd. 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-

Question 15:

Books of Rajan Ltd. 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-

Answer:

Journal
In the books of …..
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Plant & Machinery A/c	Dr.		6,00,000
	Building A/c	Dr.		4,00,000
	Sundry Debtors A/c	Dr.		1,00,000
	Stock A/c	Dr.		2,00,000
	Cash A/c	Dr.		3,00,000
	To M/s Rai Brothers A/c				15,00,000
	To Capital Reserve A/c				1,00,000
	(Business taken over)

	M/s Rai Brothers A/c	Dr.		15,00,000
	To Equity Share Capital A/c				12,00,000
	To Bank A/c				3,00,000
	(Payment made to Vendor)

Question 16:

Journal
In the books of …..
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Plant & Machinery A/c	Dr.		6,00,000
	Building A/c	Dr.		4,00,000
	Sundry Debtors A/c	Dr.		1,00,000
	Stock A/c	Dr.		2,00,000
	Cash A/c	Dr.		3,00,000
	To M/s Rai Brothers A/c				15,00,000
	To Capital Reserve A/c				1,00,000
	(Business taken over)

	M/s Rai Brothers A/c	Dr.		15,00,000
	To Equity Share Capital A/c				12,00,000
	To Bank A/c				3,00,000
	(Payment made to Vendor)

Answer:

Balance Sheet of Fab Ltd. as at ...
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	11,10,000
2. Non-Current Liabilities
3. Current Liabilities
Total		11,10,000

II Assets
1. Non-Current Assets
Fixed Assets
Tangible Assets	2	4,00,000
2. Current Assets
Cash and Cash Equivalents	3	7,10,000
Total		11,10,000

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	2,00,000 Equity Shares of Rs 10 each		20,00,000
	2. Issued Share Capital
	40,000 Equity Shares of Rs 10 each (Issued to vendor)		4,00,000
	1,30,000 Equity Shares of Rs 10 each (Issued to public)		13,00,000
	3. Subscribed Capital
	40,000 Equity shares of Rs 10 each		4,00,000
	1,20,000 Equity shares of Rs 10 each		12,00,000
	4. Called-up and Paid-up Share Capital
	40,000 Equity shares of Rs 10 each		4,00,000
	1,20,000 Equity shares of Rs 10 each (Rs 6 called-up)	7,20,000
	Less: Calls-in-Arrears (5,000 × 2)	10,000	7,10,000
			11,10,000

2	Tangible Assets
	Building		4,00,000

3	Cash and Cash Equivalents
	Cash at Bank		7,10,000

Question 17:

Balance Sheet of Fab Ltd. as at ...
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	11,10,000
2. Non-Current Liabilities
3. Current Liabilities
Total		11,10,000

II Assets
1. Non-Current Assets
Fixed Assets
Tangible Assets	2	4,00,000
2. Current Assets
Cash and Cash Equivalents	3	7,10,000
Total		11,10,000

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	2,00,000 Equity Shares of Rs 10 each		20,00,000
	2. Issued Share Capital
	40,000 Equity Shares of Rs 10 each (Issued to vendor)		4,00,000
	1,30,000 Equity Shares of Rs 10 each (Issued to public)		13,00,000
	3. Subscribed Capital
	40,000 Equity shares of Rs 10 each		4,00,000
	1,20,000 Equity shares of Rs 10 each		12,00,000
	4. Called-up and Paid-up Share Capital
	40,000 Equity shares of Rs 10 each		4,00,000
	1,20,000 Equity shares of Rs 10 each (Rs 6 called-up)	7,20,000
	Less: Calls-in-Arrears (5,000 × 2)	10,000	7,10,000
			11,10,000

2	Tangible Assets
	Building		4,00,000

3	Cash and Cash Equivalents
	Cash at Bank		7,10,000

Answer:

Journal
In the books of DLF Ltd.
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (1,00,000 × 3)	Dr.		3,00,000
	To Equity Share Application A/c				3,00,000
	(Application money received on 1,00,000 shares)

	Equity Share Application A/c	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(Application money transferred to share capital account)

	Equity Share Allotment A/c (1,00,000 × 3)	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(Allotment money due on 1,00,000 shares)

	Bank A/c	Dr.		2,94,000
	Calls-in-Arrears A/c	Dr.		6,000
	To Equity Share Allotment A/c				3,00,000
	(Allotment money received on 98,000 shares)

	Equity Share First Call A/c (1,00,000 × 2)	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(First call money due on 1,00,000 shares)

	Bank A/c	Dr.		1,96,000
	Calls-in-Arrears A/c	Dr.		4,000
	To Equity Share First Call A/c				2,00,000
	(First call money received on 98,000 shares)

	Equity Share Final Call A/c (1,00,000 × 2)	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(Final call money due on 1,00,000 shares)

	Bank A/c	Dr.		2,10,500
	To Equity Share Final Call A/c				2,00,000
	To Calls-in-Arrears A/c				10,000
	To Interest on Calls-in-Arrears A/c				500
	(Final call money received along with calls-in-arrears and interest on calls-in-arrears)

Calls-in-Arrears Account
Dr.							Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.		Amount (Rs)
	Equity Share Allotment A/c		6,000		Bank A/c			10,000
	Equity Share 1^st Call A/c		4,000
			10,000					10,000

Question 18:

Journal
In the books of DLF Ltd.
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (1,00,000 × 3)	Dr.		3,00,000
	To Equity Share Application A/c				3,00,000
	(Application money received on 1,00,000 shares)

	Equity Share Application A/c	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(Application money transferred to share capital account)

	Equity Share Allotment A/c (1,00,000 × 3)	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(Allotment money due on 1,00,000 shares)

	Bank A/c	Dr.		2,94,000
	Calls-in-Arrears A/c	Dr.		6,000
	To Equity Share Allotment A/c				3,00,000
	(Allotment money received on 98,000 shares)

	Equity Share First Call A/c (1,00,000 × 2)	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(First call money due on 1,00,000 shares)

	Bank A/c	Dr.		1,96,000
	Calls-in-Arrears A/c	Dr.		4,000
	To Equity Share First Call A/c				2,00,000
	(First call money received on 98,000 shares)

	Equity Share Final Call A/c (1,00,000 × 2)	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(Final call money due on 1,00,000 shares)

	Bank A/c	Dr.		2,10,500
	To Equity Share Final Call A/c				2,00,000
	To Calls-in-Arrears A/c				10,000
	To Interest on Calls-in-Arrears A/c				500
	(Final call money received along with calls-in-arrears and interest on calls-in-arrears)

Calls-in-Arrears Account
Dr.							Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.		Amount (Rs)
	Equity Share Allotment A/c		6,000		Bank A/c			10,000
	Equity Share 1^st Call A/c		4,000
			10,000					10,000

Answer:

Calculation of Interest on Calls-in-Advance
Amount	Due Date	Receipt Date	Interest Amount
2,400 (800 × 3)	June 01, 2015	April 01, 2015	$2, 400 \times \frac{12}{100} \times \frac{2}{12} = Rs 48$
1,600 (800 × 2)	Aug 01, 2015	April 01, 2015	$1, 600 \times \frac{12}{100} \times \frac{4}{12} = Rs 64$
TOTAL			Rs 112

Calculation of Interest on Calls-in-Arrears
Amount	Due Date	Receipt Date	Interest Amount
3,600 (1,200 × 3)	April 01, 2015	Aug 01, 2015	$3, 600 \times \frac{10}{100} \times \frac{4}{12} = Rs 120$
3,600 (1,200 × 3)	June 01, 2015	Aug 01, 2015	$3, 600 \times \frac{10}{100} \times \frac{2}{12} = Rs 60$
TOTAL			Rs 180

Question 19:

Calculation of Interest on Calls-in-Advance
Amount	Due Date	Receipt Date	Interest Amount
2,400 (800 × 3)	June 01, 2015	April 01, 2015	$2, 400 \times \frac{12}{100} \times \frac{2}{12} = Rs 48$
1,600 (800 × 2)	Aug 01, 2015	April 01, 2015	$1, 600 \times \frac{12}{100} \times \frac{4}{12} = Rs 64$
TOTAL			Rs 112

Calculation of Interest on Calls-in-Arrears
Amount	Due Date	Receipt Date	Interest Amount
3,600 (1,200 × 3)	April 01, 2015	Aug 01, 2015	$3, 600 \times \frac{10}{100} \times \frac{4}{12} = Rs 120$
3,600 (1,200 × 3)	June 01, 2015	Aug 01, 2015	$3, 600 \times \frac{10}{100} \times \frac{2}{12} = Rs 60$
TOTAL			Rs 180

Answer:

Issued and applied capital 10,000 equity shares of Rs 10 each at a premium of Rs 2

payable as:

Application	Rs	3
Allotment	Rs	5	(3+2)
First Call	Rs	2
Final Call	Rs	2
		12	(10+2)

Books of Novelties Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2015
May 01	Bank A/c	Dr.		30,000
	To Equity Share Application A/c				30,000
	(Share application money received for 10,000 shares at Rs 3 each)

May 01	Equity Share Application A/c	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(Share application money transferred to Share Capital)

June 01	Equity Share Allotment A/c	Dr.		50,000
	To Equity Share Capital A/c				30,000
	To Securities Premium A/c				20,000
	(Share allotment due on 10,000 shares at Rs 5 each including Rs 2 premium)

	Bank A/c	Dr.		54,000
	To Equity Share Allotment A/c				50,000
	To Calls-in-Advance A/c				4,000
	(Share allotment shares received on 10,000 shares at Rs 5 each along with calls-in-advance Rs 4,000 for 1,000 shares)

Aug 01	Equity Share First Call A/c	Dr.		20,000
	To Equity Share Capital A/c				20,000
	(First call due on 10,000 shares at Rs 2 each)

	Bank A/c	Dr.		14,000
	Calls-in-Arrears A/c	Dr.		4,000
	Calls-in-advance A/c	Dr.		2,000
	To Equity Share First-call A/c				20,000
	(First call of Rs 2 each received on 7,000 share, calls-in-advance of 1,000 shares adjusted and money of 2,000 shares transferred to Calls-in-Arrears Account)

Oct 01	Equity Share Final Call A/c	Dr.		20,000
	To Equity Share Capital A/c				20,000
	(Final call due on 10,000 shares at Rs 2 each)

	Bank A/c	Dr.		22,000
	Calls-in-Advance A/c	Dr.		2,000
	To Equity Share Final Call A/c				20,000
	To Calls-in-Arrears A/c				4,000
	(Share final call money received along with calls-in-arrears and adjustment made for calls-in-advance)

	Interest on Calls-in-Advance A/c	Dr.		50
	To Shareholders				50
	(Interest on calls-in-advance due)

	Shareholders	Dr.		66.67
	To Interest on Calls-in-Arrears A/c				66.67
	(Interest due for calls-in-arrears)

Working Notes-
1. Calculation of Interest on Calls-in-Advance

Interest on advance money adjusted on first call (from June 01 to Aug 01) = 2, 000 \times \frac{5}{100} \times \frac{2}{12} = Rs 16.67 Interest on advance money adjusted on final call (from June 01 to Oct 01) = 2, 000 \times \frac{5}{100} \times \frac{4}{12} = Rs 33.33 Total Interest on Calls - in - Advance = 16.67 + 33.33 = Rs 50

Question 20:

Issued and applied capital 10,000 equity shares of Rs 10 each at a premium of Rs 2

payable as:

Application	Rs	3
Allotment	Rs	5	(3+2)
First Call	Rs	2
Final Call	Rs	2
		12	(10+2)

Books of Novelties Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2015
May 01	Bank A/c	Dr.		30,000
	To Equity Share Application A/c				30,000
	(Share application money received for 10,000 shares at Rs 3 each)

May 01	Equity Share Application A/c	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(Share application money transferred to Share Capital)

June 01	Equity Share Allotment A/c	Dr.		50,000
	To Equity Share Capital A/c				30,000
	To Securities Premium A/c				20,000
	(Share allotment due on 10,000 shares at Rs 5 each including Rs 2 premium)

	Bank A/c	Dr.		54,000
	To Equity Share Allotment A/c				50,000
	To Calls-in-Advance A/c				4,000
	(Share allotment shares received on 10,000 shares at Rs 5 each along with calls-in-advance Rs 4,000 for 1,000 shares)

Aug 01	Equity Share First Call A/c	Dr.		20,000
	To Equity Share Capital A/c				20,000
	(First call due on 10,000 shares at Rs 2 each)

	Bank A/c	Dr.		14,000
	Calls-in-Arrears A/c	Dr.		4,000
	Calls-in-advance A/c	Dr.		2,000
	To Equity Share First-call A/c				20,000
	(First call of Rs 2 each received on 7,000 share, calls-in-advance of 1,000 shares adjusted and money of 2,000 shares transferred to Calls-in-Arrears Account)

Oct 01	Equity Share Final Call A/c	Dr.		20,000
	To Equity Share Capital A/c				20,000
	(Final call due on 10,000 shares at Rs 2 each)

	Bank A/c	Dr.		22,000
	Calls-in-Advance A/c	Dr.		2,000
	To Equity Share Final Call A/c				20,000
	To Calls-in-Arrears A/c				4,000
	(Share final call money received along with calls-in-arrears and adjustment made for calls-in-advance)

	Interest on Calls-in-Advance A/c	Dr.		50
	To Shareholders				50
	(Interest on calls-in-advance due)

	Shareholders	Dr.		66.67
	To Interest on Calls-in-Arrears A/c				66.67
	(Interest due for calls-in-arrears)

Working Notes-
1. Calculation of Interest on Calls-in-Advance

Interest on advance money adjusted on first call (from June 01 to Aug 01) = 2, 000 \times \frac{5}{100} \times \frac{2}{12} = Rs 16.67 Interest on advance money adjusted on final call (from June 01 to Oct 01) = 2, 000 \times \frac{5}{100} \times \frac{4}{12} = Rs 33.33 Total Interest on Calls - in - Advance = 16.67 + 33.33 = Rs 50

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (32,500 × 3)	Dr.		97,500
	To Equity Share Application A/c				97,500
	(Application money received on 32,500 shares)

	Equity Share Application A/c	Dr.		97,500
	To Equity Share Capital A/c (25,000 × 3)				75,000
	To Bank A/c (7,500 × 3)				22,500
	(Application money transferred to share capital and excess money refunded)

	Equity Share Allotment A/c (25,000 × 3)	Dr.		75,000
	To Equity Share Capital A/c				75,000
	(Allotment money due on 25,000 shares)

	Bank A/c	Dr.		74,750
	Calls-in-Arrears A/c (750 × 3)	Dr.		2,250
	To Calls-in-Advance A/c (500 × 4)				2,000
	To Equity Share Allotment A/c				75,000
	(Allotment money received)

	Equity Share First and Final call A/c (25,000 × 4)	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(First and final call money due on 25,000 shares)

	Bank A/c	Dr.		1,00,250
	Calls-in-Advance A/c	Dr.		2,000
	To Equity Share First and Final Call A/c				1,00,000
	To Calls-in-Arrears A/c				2,250
	(First call money received along with arrears)

	Sundry Members’ A/c (WN 1)	Dr.		56
	To Interest on Calls-in-Arrears A/c				56
	(Charged interest on calls-in-arrears)

	Interest on Calls-in-Advance A/c (WN 2)	Dr.		60
	To Sundry Members’ A/c				60
	(Interest allowed on calls-in-advance)

	Sundry Members’ A/c	Dr.		60
	To Bank A/c				60
	(Interest paid on calls-in-advance)

Working Notes:

WN 1: Calculation of interest on calls-in-arrears

Interest on calls - in - arrears = 2, 250 \times \frac{10}{100} \times \frac{3}{12} = Rs 56 (approx .)

WN 2: Calculation of interest on calls-in-advance

$Interest on calls - in - advance = 2, 000 \times \frac{12}{100} \times \frac{3}{12} = Rs 60$

Question 21:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (32,500 × 3)	Dr.		97,500
	To Equity Share Application A/c				97,500
	(Application money received on 32,500 shares)

	Equity Share Application A/c	Dr.		97,500
	To Equity Share Capital A/c (25,000 × 3)				75,000
	To Bank A/c (7,500 × 3)				22,500
	(Application money transferred to share capital and excess money refunded)

	Equity Share Allotment A/c (25,000 × 3)	Dr.		75,000
	To Equity Share Capital A/c				75,000
	(Allotment money due on 25,000 shares)

	Bank A/c	Dr.		74,750
	Calls-in-Arrears A/c (750 × 3)	Dr.		2,250
	To Calls-in-Advance A/c (500 × 4)				2,000
	To Equity Share Allotment A/c				75,000
	(Allotment money received)

	Equity Share First and Final call A/c (25,000 × 4)	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(First and final call money due on 25,000 shares)

	Bank A/c	Dr.		1,00,250
	Calls-in-Advance A/c	Dr.		2,000
	To Equity Share First and Final Call A/c				1,00,000
	To Calls-in-Arrears A/c				2,250
	(First call money received along with arrears)

	Sundry Members’ A/c (WN 1)	Dr.		56
	To Interest on Calls-in-Arrears A/c				56
	(Charged interest on calls-in-arrears)

	Interest on Calls-in-Advance A/c (WN 2)	Dr.		60
	To Sundry Members’ A/c				60
	(Interest allowed on calls-in-advance)

	Sundry Members’ A/c	Dr.		60
	To Bank A/c				60
	(Interest paid on calls-in-advance)

Working Notes:

WN 1: Calculation of interest on calls-in-arrears

Interest on calls - in - arrears = 2, 250 \times \frac{10}{100} \times \frac{3}{12} = Rs 56 (approx .)

WN 2: Calculation of interest on calls-in-advance

$Interest on calls - in - advance = 2, 000 \times \frac{12}{100} \times \frac{3}{12} = Rs 60$

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (90,000 × 1)	Dr.		90,000
	To Equity Share Application A/c				90,000
	(Application money received on 90,000 shares)

	Equity Share Application A/c	Dr.		90,000
	To Equity Share Capital A/c				90,000
	(Application money transferred to share capital account)

	Equity Share Allotment A/c (90,000 × 2)	Dr.		1,80,000
	To Equity Share Capital A/c				1,80,000
	(Allotment money due on 90,000 shares)

	Bank A/c	Dr.		1,92,000
	Calls-in-Arrears A/c (1,000 × 2)	Dr.		2,000
	To Calls-in-Advance A/c (2,000 × 7)				14,000
	To Equity Share Allotment A/c				1,80,000
	(Allotment money received)

	Equity Share First Call A/c (90,000 × 3)	Dr.		2,70,000
	To Equity Share Capital A/c				2,70,000
	(First call money due on 90,000 shares)

	Bank A/c	Dr.		2,61,000
	Calls-in-Arrears A/c (1,000 × 3)	Dr.		3,000
	Calls-in-Advance A/c	Dr.		6,000
	To Equity Share First Call A/c				2,70,000
	(First call money received)

	Equity Share Final Call A/c (90,000 × 4)	Dr.		3,60,000
	To Equity Share Capital A/c				3,60,000
	(Final call money due on 90,000 shares)

	Bank A/c	Dr.		3,48,000
	Calls-in-Arrears A/c (1,000 × 4)	Dr.		4,000
	Calls-in-Advance A/c	Dr.		8,000
	To Equity Share Final Call A/c				3,60,000
	(Final call money received)

Note: Since nothing has been mentioned, so we have assumed that the shareholder who didn’t pay allotment money did not paid any further calls, i.e. First Call and Final Call. As per our solution, amount for calls-in-arrears is Rs 9,000 and calls-in-advance is Rs 14,000, however, as per the solution provided in the book, calls-in-arrears is Rs 2,000 and calls-in-advance is Rs 14,000.

Question 22:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (90,000 × 1)	Dr.		90,000
	To Equity Share Application A/c				90,000
	(Application money received on 90,000 shares)

	Equity Share Application A/c	Dr.		90,000
	To Equity Share Capital A/c				90,000
	(Application money transferred to share capital account)

	Equity Share Allotment A/c (90,000 × 2)	Dr.		1,80,000
	To Equity Share Capital A/c				1,80,000
	(Allotment money due on 90,000 shares)

	Bank A/c	Dr.		1,92,000
	Calls-in-Arrears A/c (1,000 × 2)	Dr.		2,000
	To Calls-in-Advance A/c (2,000 × 7)				14,000
	To Equity Share Allotment A/c				1,80,000
	(Allotment money received)

	Equity Share First Call A/c (90,000 × 3)	Dr.		2,70,000
	To Equity Share Capital A/c				2,70,000
	(First call money due on 90,000 shares)

	Bank A/c	Dr.		2,61,000
	Calls-in-Arrears A/c (1,000 × 3)	Dr.		3,000
	Calls-in-Advance A/c	Dr.		6,000
	To Equity Share First Call A/c				2,70,000
	(First call money received)

	Equity Share Final Call A/c (90,000 × 4)	Dr.		3,60,000
	To Equity Share Capital A/c				3,60,000
	(Final call money due on 90,000 shares)

	Bank A/c	Dr.		3,48,000
	Calls-in-Arrears A/c (1,000 × 4)	Dr.		4,000
	Calls-in-Advance A/c	Dr.		8,000
	To Equity Share Final Call A/c				3,60,000
	(Final call money received)

Note: Since nothing has been mentioned, so we have assumed that the shareholder who didn’t pay allotment money did not paid any further calls, i.e. First Call and Final Call. As per our solution, amount for calls-in-arrears is Rs 9,000 and calls-in-advance is Rs 14,000, however, as per the solution provided in the book, calls-in-arrears is Rs 2,000 and calls-in-advance is Rs 14,000.

Answer:

Authorised Capital 20,000 shares of Rs 25 each

Issued Capital 10,000 shares

Applied 11,600 shares

Payable as:

Rs	5	on application
Rs	5	on allotment
Rs	7.5	on first call
Rs	7.5	on final call
	25


Applied Shares	Issued Shares	Money received on Application @ Rs 5	Money adjusted on Application @ Rs 5	Excess	Allotment due @ Rs 5	Excess money adjusted on Allotment	Excess money adjusted on First Call (Calls-in-Advance)
1,000	-	5,000	-	5,000 (returned)
1,000	400	5,000	2,000	3,000	2,000	2,000	1,000
9,600(balance)	9,600	48,000	48,000		48,000
11,600	10,000	58,000	50,000		50,000	2,000	1,000

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		58,000
	To Share Application A/c				58,000
	(Share application money received for 11,600 shares at Rs 5 each)

	Share Application A/c	Dr.		58,000
	To Share Capital A/c				50,000
	To Share Allotment A/c				2,000
	To Calls-in-Advance A/c				1,000
	To Bank A/c				5,000
	(Share application money adjusted)

	Share Allotment A/c	Dr.		50,000
	To Share Capital A/c				50,000
	(Share allotment due on 10,000 shares at Rs 5 each)

	Bank A/c	Dr.		48,000
	To Share Allotment A/c				48,000
	(Share allotment received)

	Share First Call A/c	Dr.		75,000
	To Share Capital A/c				75,000
	(Share first call due on 10,000 shares at Rs 7.5 each)

	Bank A/c	Dr.		74,000
	Calls-in-Advance A/c	Dr.		1,000
	To Share First Call A/c				75,000
	(Share first call received and calls-in-advance money adjusted)

	Share Final Call A/c	Dr.		75,000
	To Share Capital A/c				75,000
	(Share final call due on 10,000 shares at Rs 7.5 each)

	Bank A/c	Dr.		75,000
	To Shares Final Call A/c				75,000
	(Share final call received)

Question 23:

Authorised Capital 20,000 shares of Rs 25 each

Issued Capital 10,000 shares

Applied 11,600 shares

Payable as:

Rs	5	on application
Rs	5	on allotment
Rs	7.5	on first call
Rs	7.5	on final call
	25


Applied Shares	Issued Shares	Money received on Application @ Rs 5	Money adjusted on Application @ Rs 5	Excess	Allotment due @ Rs 5	Excess money adjusted on Allotment	Excess money adjusted on First Call (Calls-in-Advance)
1,000	-	5,000	-	5,000 (returned)
1,000	400	5,000	2,000	3,000	2,000	2,000	1,000
9,600(balance)	9,600	48,000	48,000		48,000
11,600	10,000	58,000	50,000		50,000	2,000	1,000

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		58,000
	To Share Application A/c				58,000
	(Share application money received for 11,600 shares at Rs 5 each)

	Share Application A/c	Dr.		58,000
	To Share Capital A/c				50,000
	To Share Allotment A/c				2,000
	To Calls-in-Advance A/c				1,000
	To Bank A/c				5,000
	(Share application money adjusted)

	Share Allotment A/c	Dr.		50,000
	To Share Capital A/c				50,000
	(Share allotment due on 10,000 shares at Rs 5 each)

	Bank A/c	Dr.		48,000
	To Share Allotment A/c				48,000
	(Share allotment received)

	Share First Call A/c	Dr.		75,000
	To Share Capital A/c				75,000
	(Share first call due on 10,000 shares at Rs 7.5 each)

	Bank A/c	Dr.		74,000
	Calls-in-Advance A/c	Dr.		1,000
	To Share First Call A/c				75,000
	(Share first call received and calls-in-advance money adjusted)

	Share Final Call A/c	Dr.		75,000
	To Share Capital A/c				75,000
	(Share final call due on 10,000 shares at Rs 7.5 each)

	Bank A/c	Dr.		75,000
	To Shares Final Call A/c				75,000
	(Share final call received)

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

Question 24:

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

Answer:

Books of Ghosh Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2015
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)

Question 25:

Books of Ghosh Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2015
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)

Answer:

Issued capital: 1,000 shares at Rs 100 each in consideration of purchase of land

4,000 shares at Rs 100 each to public

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 Grand 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			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 the Companies Act, 2013, Company's Balance Sheet is presented below.

Balance Sheet as at …
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
Fixed Assets
Tangible Assets	2	1,00,000
2. Current Assets
Cash and Cash Equivalent	3	3,92,000
Total		4,92,000

*NOTES TO ACCOUNTS*
Note No.	Particulars			Amount (Rs)
1	Share Capital
	Authorised Share Capital
	xxx shares of Rs 100 each			xxx
	Issued Share Capital
	1,000 equity shares of Rs 100 each (issued for land)		1,00,000
	4,000 equity shares of Rs 100 each (issued to public)		4,00,000	5,00,000
	Subscribed, Called-up and Paid-up Share Capital
	5,000 shares of Rs 100 each	5,00,000
	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

Question 26:

Issued capital: 1,000 shares at Rs 100 each in consideration of purchase of land

4,000 shares at Rs 100 each to public

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 Grand 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			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 the Companies Act, 2013, Company's Balance Sheet is presented below.

Balance Sheet as at …
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
Fixed Assets
Tangible Assets	2	1,00,000
2. Current Assets
Cash and Cash Equivalent	3	3,92,000
Total		4,92,000

*NOTES TO ACCOUNTS*
Note No.	Particulars			Amount (Rs)
1	Share Capital
	Authorised Share Capital
	xxx shares of Rs 100 each			xxx
	Issued Share Capital
	1,000 equity shares of Rs 100 each (issued for land)		1,00,000
	4,000 equity shares of Rs 100 each (issued to public)		4,00,000	5,00,000
	Subscribed, Called-up and Paid-up Share Capital
	5,000 shares of Rs 100 each	5,00,000
	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

Answer:

Bank Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Application A/c		30,000		Equity Share Application A/c		5,000
	Equity Share Allotment A/c		35,000		Balance c/d		1,00,000
	Equity Share First and Final Call A/c		40,000
			1,05,000				1,05,000
	Balance b/d		1,00,000

Equity Share Application Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		25,000		Bank A/c		30,000
	Bank A/c		5,000
			30,000				30,000

Equity Share Allotment Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		25,000		Bank A/c		35,000
	Securities Premium Reserve A/c		10,000
			35,000				35,000

Equity Share First and Final Call Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		50,000		Bank A/c		40,000
					Calls-in-Arrears A/c		10,000
			50,000				50,000

Securities Premium Reserve Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Balance c/d		10,000		Equity Share Allotment A/c		10,000
			10,000				10,000
					Balance b/d		10,000

Equity Share Capital Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Balance c/d		1,00,000		Equity Share Application A/c		25,000
					Equity Share Allotment A/c		25,000
					Equity Share First and Final Call A/c		50,000
			1,00,000				1,00,000
					Balance b/d		1,00,000

Calls-in-Arrears Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share First and Final Call A/c		10,000		Balance c/d		10,000
			10,000				10,000
	Balance b/d		10,000

Question 27:

Bank Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Application A/c		30,000		Equity Share Application A/c		5,000
	Equity Share Allotment A/c		35,000		Balance c/d		1,00,000
	Equity Share First and Final Call A/c		40,000
			1,05,000				1,05,000
	Balance b/d		1,00,000

Equity Share Application Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		25,000		Bank A/c		30,000
	Bank A/c		5,000
			30,000				30,000

Equity Share Allotment Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		25,000		Bank A/c		35,000
	Securities Premium Reserve A/c		10,000
			35,000				35,000

Equity Share First and Final Call Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		50,000		Bank A/c		40,000
					Calls-in-Arrears A/c		10,000
			50,000				50,000

Securities Premium Reserve Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Balance c/d		10,000		Equity Share Allotment A/c		10,000
			10,000				10,000
					Balance b/d		10,000

Equity Share Capital Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Balance c/d		1,00,000		Equity Share Application A/c		25,000
					Equity Share Allotment A/c		25,000
					Equity Share First and Final Call A/c		50,000
			1,00,000				1,00,000
					Balance b/d		1,00,000

Calls-in-Arrears Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share First and Final Call A/c		10,000		Balance c/d		10,000
			10,000				10,000
	Balance b/d		10,000

Answer:

Books of Wye Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		44,250
	To Share Application A/c (10,500 × 2 .5)				26,250
	To Calls-in-Advance A/c (800 × 22.5)				18,000
	(Application money received at Rs 2.5 per share from 10,500 shares and 800 of the shares paid Rs 22.5 each as Call-in-Advance)

	Share Application A/c (10,200 × 2.5)	Dr.		25,500
	To Share Capital A/c				25,000
	To Share Allotment A/c				500
	(Application money of 10,000 shares transferred to Share Capital adjusted and excess of the application adjusted towards allotment)

	Share Application A/c (300 × 2.5)	Dr.		750
	Calls-in-Advance A/c (300 × 22.5)	Dr.		6,750
	To Bank A/c				7,500
	(300 shares rejected and their application money and calls-in-advance refunded)

	Share Allotment A/c	Dr.		75,000
	To Share Capital A/c				75,000
	(Share allotment due on 10,000 shares at Rs 7.5 each)

	Bank A/c	Dr.		70,750
	Calls-in-Advance A/c (500 × 7.5)	Dr.		3,750
	To Share Allotment A/c				74,500
	(Share allotment money received and advance money adjusted)

	Share First Call A/c	Dr.		75,000
	To Share Capital A/c				75,000
	(First call due on 10,000 shares at Rs 7.5 each)

	Bank A/c	Dr.		65,750
	Calls-in-Advance A/c (500 × 7.5)	Dr.		3,750
	Calls-in-Arrears A/c (1,000 × 7.5 – 2,000)	Dr.		5,500
	To Share First Call A/c				75,000
	(Share first call received, advance money adjusted for first adjusted and Rs 5,500 were calls-in-Arrear)

	Share Second and Final Call A/c	Dr.		75,000
	To Share Capital A/c				75,000
	(Second and final call due on 10,000 shares at Rs 7.5 each)

	Bank A/c	Dr.		63,750
	Calls-in-Advance A/c (500 × 7.5)	Dr.		3,750
	Calls-in-Arrears A/c (1,000 × 7.5)	Dr.		7,500
	To Share Second and Final Call A/c				75,000
	(Share second and final call received, Rs 3,750 calls-in-advance adjusted, and Rs 7,500 was calls-in-arrears)

Question 28:

Books of Wye Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		44,250
	To Share Application A/c (10,500 × 2 .5)				26,250
	To Calls-in-Advance A/c (800 × 22.5)				18,000
	(Application money received at Rs 2.5 per share from 10,500 shares and 800 of the shares paid Rs 22.5 each as Call-in-Advance)

	Share Application A/c (10,200 × 2.5)	Dr.		25,500
	To Share Capital A/c				25,000
	To Share Allotment A/c				500
	(Application money of 10,000 shares transferred to Share Capital adjusted and excess of the application adjusted towards allotment)

	Share Application A/c (300 × 2.5)	Dr.		750
	Calls-in-Advance A/c (300 × 22.5)	Dr.		6,750
	To Bank A/c				7,500
	(300 shares rejected and their application money and calls-in-advance refunded)

	Share Allotment A/c	Dr.		75,000
	To Share Capital A/c				75,000
	(Share allotment due on 10,000 shares at Rs 7.5 each)

	Bank A/c	Dr.		70,750
	Calls-in-Advance A/c (500 × 7.5)	Dr.		3,750
	To Share Allotment A/c				74,500
	(Share allotment money received and advance money adjusted)

	Share First Call A/c	Dr.		75,000
	To Share Capital A/c				75,000
	(First call due on 10,000 shares at Rs 7.5 each)

	Bank A/c	Dr.		65,750
	Calls-in-Advance A/c (500 × 7.5)	Dr.		3,750
	Calls-in-Arrears A/c (1,000 × 7.5 – 2,000)	Dr.		5,500
	To Share First Call A/c				75,000
	(Share first call received, advance money adjusted for first adjusted and Rs 5,500 were calls-in-Arrear)

	Share Second and Final Call A/c	Dr.		75,000
	To Share Capital A/c				75,000
	(Second and final call due on 10,000 shares at Rs 7.5 each)

	Bank A/c	Dr.		63,750
	Calls-in-Advance A/c (500 × 7.5)	Dr.		3,750
	Calls-in-Arrears A/c (1,000 × 7.5)	Dr.		7,500
	To Share Second and Final Call A/c				75,000
	(Share second and final call received, Rs 3,750 calls-in-advance adjusted, and Rs 7,500 was calls-in-arrears)

Answer:

Issued Capital 8,000 Shares of Rs 10 each Rs 5 called up

Books of XYZ Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	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 the Companies Act, 2013, 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	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 (Rs)
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

Question 29:

Issued Capital 8,000 Shares of Rs 10 each Rs 5 called up

Books of XYZ Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	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 the Companies Act, 2013, 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	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 (Rs)
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

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2015
Aug. 01	Bank A/c	Dr.		5,000
	To Calls-in-Arrears A/c				5,000
	(Received calls-in-arrears)

Aug. 01	Sundry Members A/c	Dr.		125
	To Interest on Calls-in-Arrears A/c				125
	(Interest due on calls-in-arrears)

Aug. 01	Bank A/c	Dr.		125
	To Sundry Members A/c				125
	(Received interest on calls-in-arrears)

Working Notes: Calculation of interest on calls-in-arrears

$Interest = 5, 000 \times \frac{10}{100} \times \frac{3}{12} = Rs 125$

Question 30:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2015
Aug. 01	Bank A/c	Dr.		5,000
	To Calls-in-Arrears A/c				5,000
	(Received calls-in-arrears)

Aug. 01	Sundry Members A/c	Dr.		125
	To Interest on Calls-in-Arrears A/c				125
	(Interest due on calls-in-arrears)

Aug. 01	Bank A/c	Dr.		125
	To Sundry Members A/c				125
	(Received interest on calls-in-arrears)

Working Notes: Calculation of interest on calls-in-arrears

$Interest = 5, 000 \times \frac{10}{100} \times \frac{3}{12} = Rs 125$

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2015
Aug.01	Interest on Calls-in-Advance A/c	Dr.		30
	To Sundry Members A/c				30
	(Interest on calls-in-advance credited to sundry members)

Aug.01	Sundry Members A/c	Dr.		30
	To Bank A/c				30
	(Paid interest on calls-in-advance)

Working Notes: Calculation of interest on calls-in-advance

Interest = 1, 000 \times \frac{12}{100} \times \frac{3}{12} = Rs 30

Question 31:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2015
Aug.01	Interest on Calls-in-Advance A/c	Dr.		30
	To Sundry Members A/c				30
	(Interest on calls-in-advance credited to sundry members)

Aug.01	Sundry Members A/c	Dr.		30
	To Bank A/c				30
	(Paid interest on calls-in-advance)

Working Notes: Calculation of interest on calls-in-advance

Interest = 1, 000 \times \frac{12}{100} \times \frac{3}{12} = Rs 30

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (10,000 × 2)	Dr.		20,000
	To Equity Share Application A/c				20,000
	(Application money received on 10,000 shares)

	Equity Share Application A/c	Dr.		20,000
	To Equity Share Capital A/c				20,000
	(Application money transferred to Share Capital A/c)

2014
May 01	Equity Share Allotment A/c (10,000 × 3)	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(Allotment money due on 10,000 shares)

May 01	Bank A/c	Dr.		31,000
	To Equity Share Allotment A/c				30,000
	To Calls-in-Advance A/c (WN1)				1,000
	(Amount received on allotment along with calls-in-advance)

Oct. 01	Equity Share First Call A/c (10,000 × 3)	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(Amount due on first call)

Oct. 01	Bank A/c	Dr.		29,400
	Calls-in-Advance A/c			600
	To Equity Share First Call A/c				30,000
	(Amount received on first call)

2015
Feb. 01	Equity Share Second and Final Call A/c	Dr.		20,000
	To Equity Share Capital A/c (10,000 × 2)				20,000
	(Amount due on final call)

Feb. 01	Bank A/c	Dr.		19,600
	Calls-in-Advance A/c			400
	To Equity Share Secondand Final Call A/c				20,000
	(Amount received on final call)

Feb. 01	Interest on Calls-In-Advance A/c	Dr.		66
	To Bank A/c				66
	(Interest paid on calls-in-advance)

Working Notes:

WN1: Calculation of amount of calls-in-advance

Amount due on First Call	=	600	(200 × 3)
Amount due on Second Call	=	400	(200 × 2)
Total amount received in advance	=	Rs 1,000

WN2: Calculation of interest on calls-in-advance

$\begin{array}{l} Interest on first call = 600 \times \frac{12}{100} \times \frac{5}{12} = Rs 30 \\ Interest on second call = 400 \times \frac{12}{100} \times \frac{9}{12} = Rs 36 \end{array}$

Question 32:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (10,000 × 2)	Dr.		20,000
	To Equity Share Application A/c				20,000
	(Application money received on 10,000 shares)

	Equity Share Application A/c	Dr.		20,000
	To Equity Share Capital A/c				20,000
	(Application money transferred to Share Capital A/c)

2014
May 01	Equity Share Allotment A/c (10,000 × 3)	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(Allotment money due on 10,000 shares)

May 01	Bank A/c	Dr.		31,000
	To Equity Share Allotment A/c				30,000
	To Calls-in-Advance A/c (WN1)				1,000
	(Amount received on allotment along with calls-in-advance)

Oct. 01	Equity Share First Call A/c (10,000 × 3)	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(Amount due on first call)

Oct. 01	Bank A/c	Dr.		29,400
	Calls-in-Advance A/c			600
	To Equity Share First Call A/c				30,000
	(Amount received on first call)

2015
Feb. 01	Equity Share Second and Final Call A/c	Dr.		20,000
	To Equity Share Capital A/c (10,000 × 2)				20,000
	(Amount due on final call)

Feb. 01	Bank A/c	Dr.		19,600
	Calls-in-Advance A/c			400
	To Equity Share Secondand Final Call A/c				20,000
	(Amount received on final call)

Feb. 01	Interest on Calls-In-Advance A/c	Dr.		66
	To Bank A/c				66
	(Interest paid on calls-in-advance)

Working Notes:

WN1: Calculation of amount of calls-in-advance

Amount due on First Call	=	600	(200 × 3)
Amount due on Second Call	=	400	(200 × 2)
Total amount received in advance	=	Rs 1,000

WN2: Calculation of interest on calls-in-advance

$\begin{array}{l} Interest on first call = 600 \times \frac{12}{100} \times \frac{5}{12} = Rs 30 \\ Interest on second call = 400 \times \frac{12}{100} \times \frac{9}{12} = Rs 36 \end{array}$

Answer:

Cash Book (With Bank Column Only)
Dr.					Cr.
Date	Particulars	L.F.	Amount (Rs)	Date		Particulars	L.F.	Amount (Rs)
	Share Application A/c		75,000			Share Application A/c		12,500
	Share Allotment A/c		87,500			Balance c/d		1,50,000
			1,62,500					1,62,500

Equity Share Capital Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Share Application A/c		50,000
					Share Allotment A/c		1,00,000

Equity Share Application Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		50,000		Bank A/c		75,000
	Equity Share Allotment A/c		12,500
	Bank A/c		12,500
			75,000				75,000

Equity Share Allotment Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		1,00,000		Bank A/c		87,500
					Equity Share Application A/c		12,500

			1,00,000				1,00,000

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Application A/c	Dr.		62,500
	To Equity Share Capital A/c				50,000
	To Equity Share Allotment A/c				12,500
	(Application money transferred to share capital and remaining amount is adjusted towards allotment)

	Equity Share Allotment A/c	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(Allotment money due on 20,000 shares)

Balance Sheet of ABC Company Ltd. as atMarch 31, 2014
Particulars	Note No.	Amount (Rs)
1. Equity and Liabilities
Shareholders’ Funds
a. Share Capital	1	1,50,000
Total		1,50,000

2. Assets
Current Assets
Cash and Cash Equivalents	2	1,50,000
Total		1,50,000

Notes to Accounts
Particulars	Amount (Rs)
1. Share Capital
Authorised Share Capital
xxx shares of Rs10 each	xxx
Issued Share Capital
20,000 Equity Shares of Rs 10 each	2,00,000
Subscribed Capital
Subscribed but not fully paid-up
20,000 Equity Shares of Rs 10 each, Rs 7.50 called-up	1,50,000

2. Cash and Cash Equivalents
Cash at Bank	1,50,000

Note:Since nothing has been specified about call money, so it is assumed that calls were not made by the company.

Question 33:

Cash Book (With Bank Column Only)
Dr.					Cr.
Date	Particulars	L.F.	Amount (Rs)	Date		Particulars	L.F.	Amount (Rs)
	Share Application A/c		75,000			Share Application A/c		12,500
	Share Allotment A/c		87,500			Balance c/d		1,50,000
			1,62,500					1,62,500

Equity Share Capital Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Share Application A/c		50,000
					Share Allotment A/c		1,00,000

Equity Share Application Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		50,000		Bank A/c		75,000
	Equity Share Allotment A/c		12,500
	Bank A/c		12,500
			75,000				75,000

Equity Share Allotment Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		1,00,000		Bank A/c		87,500
					Equity Share Application A/c		12,500

			1,00,000				1,00,000

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Application A/c	Dr.		62,500
	To Equity Share Capital A/c				50,000
	To Equity Share Allotment A/c				12,500
	(Application money transferred to share capital and remaining amount is adjusted towards allotment)

	Equity Share Allotment A/c	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(Allotment money due on 20,000 shares)

Balance Sheet of ABC Company Ltd. as atMarch 31, 2014
Particulars	Note No.	Amount (Rs)
1. Equity and Liabilities
Shareholders’ Funds
a. Share Capital	1	1,50,000
Total		1,50,000

2. Assets
Current Assets
Cash and Cash Equivalents	2	1,50,000
Total		1,50,000

Notes to Accounts
Particulars	Amount (Rs)
1. Share Capital
Authorised Share Capital
xxx shares of Rs10 each	xxx
Issued Share Capital
20,000 Equity Shares of Rs 10 each	2,00,000
Subscribed Capital
Subscribed but not fully paid-up
20,000 Equity Shares of Rs 10 each, Rs 7.50 called-up	1,50,000

2. Cash and Cash Equivalents
Cash at Bank	1,50,000

Note:Since nothing has been specified about call money, so it is assumed that calls were not made by the company.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (1,65,000 × 3)	Dr.		4,95,000
	To Equity Share Application A/c				4,95,000
	(Application money received on 1,65,000 shares)

	Equity Share Application A/c	Dr.		4,95,000
	To Equity Share Capital A/c (75,000 × 3)				2,25,000
	To Equity Share Allotment A/c				90,000
	To Equity Share First and Final Call A/c				1,35,000
	To Bank A/c				45,000
	(Application money transferred and adjusted)

	Equity Share Allotment A/c (75,000 × 2)	Dr.		1,50,000
	To Equity Share Capital A/c				1,50,000
	(allotment money due)

	Bank A/c	Dr.		60,000
	To Equity Share Allotment A/c				60,000
	(Allotment money received)

Working Notes:

WN 1: Computation Table

Category	Shares Applied	Shares Allotted	App. money received @ Rs 3 each	Amount trsfd. to Share Capital Account @ Rs 3 each	Excess money	Excess money (utilised on allotment)	Excess money (utilised on call)	Money refunded
I	15,000	–	45,000	–	45,000	–	–	45,000
II	30,000	15,000	90,000	45,000	45,000	30,000 (15,000 × 2)	15,000 (45,000 – 30,000)	–
III	30,000	30,000	90,000	90,000	–	–	–	–
IV	90,000	30,000	2,70,000	90,000	1,80,000	60,000 (30,000 × 2)	1,20,000 (1,80,000 – 60,000)	–
Total	1,65,000	75,000	4,95,000	2,25,000	2,70,000	90,000	1,35,000	45,000

Question 34:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (1,65,000 × 3)	Dr.		4,95,000
	To Equity Share Application A/c				4,95,000
	(Application money received on 1,65,000 shares)

	Equity Share Application A/c	Dr.		4,95,000
	To Equity Share Capital A/c (75,000 × 3)				2,25,000
	To Equity Share Allotment A/c				90,000
	To Equity Share First and Final Call A/c				1,35,000
	To Bank A/c				45,000
	(Application money transferred and adjusted)

	Equity Share Allotment A/c (75,000 × 2)	Dr.		1,50,000
	To Equity Share Capital A/c				1,50,000
	(allotment money due)

	Bank A/c	Dr.		60,000
	To Equity Share Allotment A/c				60,000
	(Allotment money received)

Working Notes:

WN 1: Computation Table

Category	Shares Applied	Shares Allotted	App. money received @ Rs 3 each	Amount trsfd. to Share Capital Account @ Rs 3 each	Excess money	Excess money (utilised on allotment)	Excess money (utilised on call)	Money refunded
I	15,000	–	45,000	–	45,000	–	–	45,000
II	30,000	15,000	90,000	45,000	45,000	30,000 (15,000 × 2)	15,000 (45,000 – 30,000)	–
III	30,000	30,000	90,000	90,000	–	–	–	–
IV	90,000	30,000	2,70,000	90,000	1,80,000	60,000 (30,000 × 2)	1,20,000 (1,80,000 – 60,000)	–
Total	1,65,000	75,000	4,95,000	2,25,000	2,70,000	90,000	1,35,000	45,000

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (35,000 × 3)	Dr.		1,05,000
	To Equity Share Application A/c				1,05,000
	(Application money received on 35,000 shares)

	Equity Share Application A/c	Dr.		1,05,000
	To Equity Share Capital A/c (20,000 × 3)				60,000
	To Equity Share Allotment A/c				45,000
	(Application money transferred and adjusted)

	Equity Share Allotment A/c (20,000 × 3)	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(Allotment money due on 20,000 shares)

	Bank A/c	Dr.		15,000
	To Equity Share Allotment A/c (60,000 – 45,000)				15,000
	(Allotment money received)

	Equity Share Call A/c (20,000 × 4)	Dr.		80,000
	To Equity Share Capital A/c				80,000
	(Call money due)

	Bank A/c	Dr.		78,400
	To Equity Share Call A/c (80,000 – 1,600)				78,400
	(Call money received except on 400 shares)

Working Notes:

WN 1: Computation Table

Category	Shares Applied	Shares Allotted	App. money received @ Rs 3 each	Amount trsfd. to Share Capital Account @ Rs 3 each	Excess money	Excess money (utilised on allotment)	Money refunded
I	5,000	5,000	15,000	15,000	–	–	–
II	30,000	15,000	90,000	45,000	45,000	45,000	–
Total	35,000	20,000	1,05,000	60,000	45,000	45,000	–

Question 35:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (35,000 × 3)	Dr.		1,05,000
	To Equity Share Application A/c				1,05,000
	(Application money received on 35,000 shares)

	Equity Share Application A/c	Dr.		1,05,000
	To Equity Share Capital A/c (20,000 × 3)				60,000
	To Equity Share Allotment A/c				45,000
	(Application money transferred and adjusted)

	Equity Share Allotment A/c (20,000 × 3)	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(Allotment money due on 20,000 shares)

	Bank A/c	Dr.		15,000
	To Equity Share Allotment A/c (60,000 – 45,000)				15,000
	(Allotment money received)

	Equity Share Call A/c (20,000 × 4)	Dr.		80,000
	To Equity Share Capital A/c				80,000
	(Call money due)

	Bank A/c	Dr.		78,400
	To Equity Share Call A/c (80,000 – 1,600)				78,400
	(Call money received except on 400 shares)

Working Notes:

WN 1: Computation Table

Category	Shares Applied	Shares Allotted	App. money received @ Rs 3 each	Amount trsfd. to Share Capital Account @ Rs 3 each	Excess money	Excess money (utilised on allotment)	Money refunded
I	5,000	5,000	15,000	15,000	–	–	–
II	30,000	15,000	90,000	45,000	45,000	45,000	–
Total	35,000	20,000	1,05,000	60,000	45,000	45,000	–

Answer:

Cash Book (With Bank Column Only)
Dr.					Cr.
Date	Particulars	L.F.	Amount (Rs)	Date		Particulars	L.F.	Amount (Rs)
	Share Application A/c		75,000			Share Application A/c		12,500
	Share Allotment A/c		87,500			Balance c/d		1,50,000
			1,62,500					1,62,500

Equity Share Capital Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Share Application A/c		50,000
					Share Allotment A/c		1,00,000

Equity Share Application Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		50,000		Bank A/c		75,000
	Equity Share Allotment A/c		12,500
	Bank A/c		12,500
			75,000				75,000

Equity Share Allotment Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		1,00,000		Bank A/c		87,500
					Equity Share Application A/c		12,500

			1,00,000				1,00,000

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Application A/c	Dr.		62,500
	To Equity Share Capital A/c				50,000
	To Equity Share Allotment A/c				12,500
	(Application money transferred to share capital and remaining amount is adjusted towards allotment)

	Equity Share Allotment A/c	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(Allotment money due on 20,000 shares)

Balance Sheet of ABC Company Ltd. as atMarch 31, 2014
Particulars	Note No.	Amount (Rs)
1. Equity and Liabilities
Shareholders’ Funds
a. Share Capital	1	1,50,000
Total		1,50,000

2. Assets
Current Assets
Cash and Cash Equivalents	2	1,50,000
Total		1,50,000

Notes to Accounts
Particulars	Amount (Rs)
1. Share Capital
Authorised Share Capital
xxx shares of Rs10 each	xxx
Issued Share Capital
20,000 Equity Shares of Rs 10 each	2,00,000
Subscribed Capital
Subscribed but not fully paid-up
20,000 Equity Shares of Rs 10 each, Rs 7.50 called-up	1,50,000

2. Cash and Cash Equivalents
Cash at Bank	1,50,000

Note:Since nothing has been specified about call money, so it is assumed that calls were not made by the company.

Question 36:

Cash Book (With Bank Column Only)
Dr.					Cr.
Date	Particulars	L.F.	Amount (Rs)	Date		Particulars	L.F.	Amount (Rs)
	Share Application A/c		75,000			Share Application A/c		12,500
	Share Allotment A/c		87,500			Balance c/d		1,50,000
			1,62,500					1,62,500

Equity Share Capital Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
					Share Application A/c		50,000
					Share Allotment A/c		1,00,000

Equity Share Application Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		50,000		Bank A/c		75,000
	Equity Share Allotment A/c		12,500
	Bank A/c		12,500
			75,000				75,000

Equity Share Allotment Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
	Equity Share Capital A/c		1,00,000		Bank A/c		87,500
					Equity Share Application A/c		12,500

			1,00,000				1,00,000

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Application A/c	Dr.		62,500
	To Equity Share Capital A/c				50,000
	To Equity Share Allotment A/c				12,500
	(Application money transferred to share capital and remaining amount is adjusted towards allotment)

	Equity Share Allotment A/c	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(Allotment money due on 20,000 shares)

Balance Sheet of ABC Company Ltd. as atMarch 31, 2014
Particulars	Note No.	Amount (Rs)
1. Equity and Liabilities
Shareholders’ Funds
a. Share Capital	1	1,50,000
Total		1,50,000

2. Assets
Current Assets
Cash and Cash Equivalents	2	1,50,000
Total		1,50,000

Notes to Accounts
Particulars	Amount (Rs)
1. Share Capital
Authorised Share Capital
xxx shares of Rs10 each	xxx
Issued Share Capital
20,000 Equity Shares of Rs 10 each	2,00,000
Subscribed Capital
Subscribed but not fully paid-up
20,000 Equity Shares of Rs 10 each, Rs 7.50 called-up	1,50,000

2. Cash and Cash Equivalents
Cash at Bank	1,50,000

Note:Since nothing has been specified about call money, so it is assumed that calls were not made by the company.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (65,000 × 6)	Dr.		3,90,000
	To Equity Share Application A/c				3,90,000
	(Application money received on 65,000 shares)

	Equity Share Application A/c	Dr.		3,90,000
	To Bank A/c (15,000 × 6)				90,000
	To Equity Share Capital A/c (40,000 × 6)				2,40,000
	To Equity Share Allotment A/c (10,000 × 6)				60,000
	(Application money adjusted and transferred)

	Equity Share Allotment A/c (40,000 × 4)	Dr.		1,60,000
	To Equity Share Capital A/c				1,60,000
	(Allotment money due on 40,000 shares)

	Bank A/c	Dr.		80,000
	To Equity Share Allotment A/c (1,60,000 – 60,000 – 20,000)				80,000
	(Allotment money received)

Working Notes: Calculation of amount unpaid by Mohan

\begin{array}{ccl} Shares Applied by Mohan & = & \frac{50, 000}{40, 000} \times 8, 000 = 10, 000 shares \\ Amount due on allotment & = & 32, 000 (8, 000 \times 4) \\ L e s s : Excess money & = & \underset{}{12, 000 (2, 000 \times 6)} \\ Amount not paid on allotment & = & Rs 20, 000 \end{array}

Question 37:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (65,000 × 6)	Dr.		3,90,000
	To Equity Share Application A/c				3,90,000
	(Application money received on 65,000 shares)

	Equity Share Application A/c	Dr.		3,90,000
	To Bank A/c (15,000 × 6)				90,000
	To Equity Share Capital A/c (40,000 × 6)				2,40,000
	To Equity Share Allotment A/c (10,000 × 6)				60,000
	(Application money adjusted and transferred)

	Equity Share Allotment A/c (40,000 × 4)	Dr.		1,60,000
	To Equity Share Capital A/c				1,60,000
	(Allotment money due on 40,000 shares)

	Bank A/c	Dr.		80,000
	To Equity Share Allotment A/c (1,60,000 – 60,000 – 20,000)				80,000
	(Allotment money received)

Working Notes: Calculation of amount unpaid by Mohan

\begin{array}{ccl} Shares Applied by Mohan & = & \frac{50, 000}{40, 000} \times 8, 000 = 10, 000 shares \\ Amount due on allotment & = & 32, 000 (8, 000 \times 4) \\ L e s s : Excess money & = & \underset{}{12, 000 (2, 000 \times 6)} \\ Amount not paid on allotment & = & Rs 20, 000 \end{array}

Answer:

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

Issued Capital 60,000 shares

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
Jan 31	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 the Companies Act, 2013, 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
	60,000 shares of Rs 10 each		6,00,000
	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

Question 38:

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

Issued Capital 60,000 shares

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
Jan 31	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 the Companies Act, 2013, 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
	60,000 shares of Rs 10 each		6,00,000
	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

Answer:

Cash Book
Dr.					Cr.
Date	Particulars	L.F.	Amount (Rs)	Date		Particulars	L.F.	Amount (Rs)
2013
	Equity Share Application A/c		5,40,000			Balance c/d		17,85,000
	Equity Share Allotment A/c		3,60,000
	Equity Share First Call A/c		3,54,000
	Equity Share Second Call A/c		5,31,000
			17,85,000					17,85,000

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2013
	Equity Share Application A/c (1,80,000 × 3)	Dr.		5,40,000
	To Equity Share Capital A/c				5,40,000
	(Application money transferred to share capital)

	Equity Share Allotment A/c (1,80,000 × 2)	Dr.		3,60,000
	To Equity Share Capital A/c				3,60,000
	(Allotment money due)

	Equity Share First Call A/c (1,80,000 × 2)	Dr.		3,60,000
	To Equity Share Capital A/c				3,60,000
	(Money due on first call)

	Equity Share Second and Final Call A/c (1,80,000 × 3)	Dr.		5,40,000
	To Equity share Capital A/c				5,40,000
	(Money due on second call)

Balance Sheet of Gold & Silver Ltd. as at …
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	17,85,000
2. Non-Current Liabilities
3. Current Liabilities
Total		17,85,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	17,85,000
Total		17,85,000

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	xxx shares of Rs 10 each		xxx
	2. Issued Share Capital
	2,00,000 Equity Shares of Rs 10 each		20,00,000
	3. Subscribed Capital
	1,80,000 Equity shares of Rs 10 each		18,00,000
	4. Called-up and Paid-up Share Capital
	1,80,000 Equity shares of Rs 10 each, fully called-up	18,00,000
	Less: Calls-in-Arrears	(15,000)	17,85,000

2	Cash and Cash Equivalents
	Cash at Bank		17,85,000

Question 39:

Cash Book
Dr.					Cr.
Date	Particulars	L.F.	Amount (Rs)	Date		Particulars	L.F.	Amount (Rs)
2013
	Equity Share Application A/c		5,40,000			Balance c/d		17,85,000
	Equity Share Allotment A/c		3,60,000
	Equity Share First Call A/c		3,54,000
	Equity Share Second Call A/c		5,31,000
			17,85,000					17,85,000

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2013
	Equity Share Application A/c (1,80,000 × 3)	Dr.		5,40,000
	To Equity Share Capital A/c				5,40,000
	(Application money transferred to share capital)

	Equity Share Allotment A/c (1,80,000 × 2)	Dr.		3,60,000
	To Equity Share Capital A/c				3,60,000
	(Allotment money due)

	Equity Share First Call A/c (1,80,000 × 2)	Dr.		3,60,000
	To Equity Share Capital A/c				3,60,000
	(Money due on first call)

	Equity Share Second and Final Call A/c (1,80,000 × 3)	Dr.		5,40,000
	To Equity share Capital A/c				5,40,000
	(Money due on second call)

Balance Sheet of Gold & Silver Ltd. as at …
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	17,85,000
2. Non-Current Liabilities
3. Current Liabilities
Total		17,85,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	17,85,000
Total		17,85,000

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	xxx shares of Rs 10 each		xxx
	2. Issued Share Capital
	2,00,000 Equity Shares of Rs 10 each		20,00,000
	3. Subscribed Capital
	1,80,000 Equity shares of Rs 10 each		18,00,000
	4. Called-up and Paid-up Share Capital
	1,80,000 Equity shares of Rs 10 each, fully called-up	18,00,000
	Less: Calls-in-Arrears	(15,000)	17,85,000

2	Cash and Cash Equivalents
	Cash at Bank		17,85,000

Answer:

Cash Book
Dr.					Cr.
Date	Particulars	L.F.	Amount (Rs)	Date		Particulars	L.F.	Amount (Rs)
	Equity Share Application A/c		3,75,000			Balance c/d		13,65,000
	Equity Share Allotment A/c		5,00,000
	Equity Share First Call A/c		2,45,000
	Equity Share Second Call A/c		2,45,000
			13,65,000					13,65,000

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

	Equity Share Application A/c (1,25,000 × 3)	Dr.		3,75,000
	To Equity Share Capital A/c				3,75,000
	(Application money transferred to share capital)

	Equity Share Allotment A/c (1,25,000 × 4)	Dr.		5,00,000
	To Equity Share Capital A/c (1,25,000 × 3)				3,75,000
	To Securities Premium Reserve A/c (1,25,000 × 1)				1,25,000
	(Allotment money due)

	Equity Share First Call A/c (1,25,000 × 2)	Dr.		2,50,000
	To Equity Share Capital A/c				2,50,000
	(First call money due)

	Equity Share Second and Final Call A/c (1,25,000 × 2)	Dr.		2,50,000
	To Equity Share Capital A/c				2,50,000
	(Second call money due)

Balance Sheet of Silver & Gold Ltd. as at …
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	12,40,000
b. Reserves and Surplus	2	1,25,000
2. Non-Current Liabilities
3. Current Liabilities
Total		13,65,000

II Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	13,65,000
Total		13,65,000

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	xxx shares of Rs 10 each		xxx
	2. Issued Share Capital
	1,50,000 Equity Shares of Rs 10 each		15,00,000
	3. Subscribed Capital
	1,25,000 Equity Shares of Rs 10 each		12,50,000
	4. Called-up and Paid-up Share Capital
	1,25,000 Equity shares of Rs 10 each, fully called-up	12,50,000
	Less: Calls-in-Arrears	(10,000)	12,40,000

2	Reserves and Surplus
	Securities Premium Reserve		1,25,000

2	Cash and Cash Equivalents
	Cash at Bank		13,65,000

Question 40:

Cash Book
Dr.					Cr.
Date	Particulars	L.F.	Amount (Rs)	Date		Particulars	L.F.	Amount (Rs)
	Equity Share Application A/c		3,75,000			Balance c/d		13,65,000
	Equity Share Allotment A/c		5,00,000
	Equity Share First Call A/c		2,45,000
	Equity Share Second Call A/c		2,45,000
			13,65,000					13,65,000

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

	Equity Share Application A/c (1,25,000 × 3)	Dr.		3,75,000
	To Equity Share Capital A/c				3,75,000
	(Application money transferred to share capital)

	Equity Share Allotment A/c (1,25,000 × 4)	Dr.		5,00,000
	To Equity Share Capital A/c (1,25,000 × 3)				3,75,000
	To Securities Premium Reserve A/c (1,25,000 × 1)				1,25,000
	(Allotment money due)

	Equity Share First Call A/c (1,25,000 × 2)	Dr.		2,50,000
	To Equity Share Capital A/c				2,50,000
	(First call money due)

	Equity Share Second and Final Call A/c (1,25,000 × 2)	Dr.		2,50,000
	To Equity Share Capital A/c				2,50,000
	(Second call money due)

Balance Sheet of Silver & Gold Ltd. as at …
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	12,40,000
b. Reserves and Surplus	2	1,25,000
2. Non-Current Liabilities
3. Current Liabilities
Total		13,65,000

II Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	13,65,000
Total		13,65,000

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	xxx shares of Rs 10 each		xxx
	2. Issued Share Capital
	1,50,000 Equity Shares of Rs 10 each		15,00,000
	3. Subscribed Capital
	1,25,000 Equity Shares of Rs 10 each		12,50,000
	4. Called-up and Paid-up Share Capital
	1,25,000 Equity shares of Rs 10 each, fully called-up	12,50,000
	Less: Calls-in-Arrears	(10,000)	12,40,000

2	Reserves and Surplus
	Securities Premium Reserve		1,25,000

2	Cash and Cash Equivalents
	Cash at Bank		13,65,000

Answer:

Application	Rs	2
Allotment	Rs	3
First Call	Rs	3
Final Call	Rs	2
		10

Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs

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)

Question 41:

Application	Rs	2
Allotment	Rs	3
First Call	Rs	3
Final Call	Rs	2
		10

Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs

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)

Answer:

In the books of Wintex Exports Ltd. Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		2,00,000
	To Equity Share Application A/c				2,00,000
	(Application money received on 20,000 shares)

	Equity Share Application A/c	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(Application money transferred to Share Capital Account)

	Equity Share Allotment A/c	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(Amount due on allotment @ Rs 10 each)

	Bank A/c (20,000 – 400) × 10	Dr.		1,96,000
	To Equity Share Allotment A/c				1,96,000
	(Amount received on shares issued except on 400 shareholders)

	Equity Share First Call A/c	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(Amount due on first and final call on 20,000 shares)

	Bank A/c (20,000 – 680) × 15	Dr.		2,89,800
	To Equity Share First Call A/c				2,89,800
	(Amount received on first and final call)

	Equity Share Second and Final Call A/c	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(Amount due on first and final call on 20,000 shares)

	Bank A/c (20,000 – 740) × 15	Dr.		2,88,900
	To Equity Share Second and Final Call A/c				2,88,900
	(Amount received on first and final call)

	Share Capital A/c (760 × 50 )	Dr.		38,000
	To Share Forfeiture A/c (WN2)				12,700
	To Share Allotment A/c (400 × 10)				4,000
	To Share First Call A/c (680 × 15)				10,200
	To Share Second and Final Call A/c (740 × 15)				11,100
	(Shares were forfeited due to the non-payment of arrears)

Working Notes:

WN 1:

Shareholders	No. of Shares	Application Money @ Rs 10	Allotment Money @ Rs 10	First Call Money @ Rs 15	Second and Final Call Money @ Rs 15
A	300	âœ”	âœ˜	âœ˜	âœ˜
B	200	âœ”	Unpaid on 100 shares	âœ˜	âœ˜
C	180	âœ”	âœ”	âœ˜	âœ˜
D	50	âœ”	âœ”	âœ”	âœ˜
E	30	âœ”	âœ”	âœ”	Unpaid on 10 shares
Total shares on which payment is not received			400 (300 + 100)	680 (300 + 200 + 180)	740 (300 + 200 + 180 + 50 + 10)

WN 2: Amount Received on Forfeited Shares

Shareholders	Amount Paid
A	3,000 (300 × 10)
B	3,000 {(200 × 10) + 100 × 10}
C	3,600 (180 × 20)
D	1,750 (50 × 35)
E	1,350 {(30 × 35) + 20 × 15}
TOTAL

Note: As per our solution the amount forfeited is Rs 12,700, however, as per the book the amount forfeited is given as Rs 11,700.

Question 42:

In the books of Wintex Exports Ltd. Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		2,00,000
	To Equity Share Application A/c				2,00,000
	(Application money received on 20,000 shares)

	Equity Share Application A/c	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(Application money transferred to Share Capital Account)

	Equity Share Allotment A/c	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(Amount due on allotment @ Rs 10 each)

	Bank A/c (20,000 – 400) × 10	Dr.		1,96,000
	To Equity Share Allotment A/c				1,96,000
	(Amount received on shares issued except on 400 shareholders)

	Equity Share First Call A/c	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(Amount due on first and final call on 20,000 shares)

	Bank A/c (20,000 – 680) × 15	Dr.		2,89,800
	To Equity Share First Call A/c				2,89,800
	(Amount received on first and final call)

	Equity Share Second and Final Call A/c	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(Amount due on first and final call on 20,000 shares)

	Bank A/c (20,000 – 740) × 15	Dr.		2,88,900
	To Equity Share Second and Final Call A/c				2,88,900
	(Amount received on first and final call)

	Share Capital A/c (760 × 50 )	Dr.		38,000
	To Share Forfeiture A/c (WN2)				12,700
	To Share Allotment A/c (400 × 10)				4,000
	To Share First Call A/c (680 × 15)				10,200
	To Share Second and Final Call A/c (740 × 15)				11,100
	(Shares were forfeited due to the non-payment of arrears)

Working Notes:

WN 1:

Shareholders	No. of Shares	Application Money @ Rs 10	Allotment Money @ Rs 10	First Call Money @ Rs 15	Second and Final Call Money @ Rs 15
A	300	âœ”	âœ˜	âœ˜	âœ˜
B	200	âœ”	Unpaid on 100 shares	âœ˜	âœ˜
C	180	âœ”	âœ”	âœ˜	âœ˜
D	50	âœ”	âœ”	âœ”	âœ˜
E	30	âœ”	âœ”	âœ”	Unpaid on 10 shares
Total shares on which payment is not received			400 (300 + 100)	680 (300 + 200 + 180)	740 (300 + 200 + 180 + 50 + 10)

WN 2: Amount Received on Forfeited Shares

Shareholders	Amount Paid
A	3,000 (300 × 10)
B	3,000 {(200 × 10) + 100 × 10}
C	3,600 (180 × 20)
D	1,750 (50 × 35)
E	1,350 {(30 × 35) + 20 × 15}
TOTAL

Note: As per our solution the amount forfeited is Rs 12,700, however, as per the book the amount forfeited is given as Rs 11,700.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		8,00,000
	To Equity Share Application A/c (20,000 × 40)				8,00,000
	(Application Money Received)

	Equity Share Application A/c	Dr.		8,00,000
	To Equity Share Capital A/c				8,00,000
	(Application money transferred to share capital)

	Equity Share Allotment A/c (20,000 × 30)	Dr.		6,00,000
	To Equity Share Capital A/c				6,00,000
	(Allotment money due)

	Bank A/c	Dr.		5,88,000
	To Equity Share Allotment A/c (6,00,000 – 12,000)				5,88,000
	(Allotment money received)

	Equity Share First Call A/c (20,000 × 20)	Dr.		4,00,000
	To Equity Share Capital A/c				4,00,000
	(Money due on first call)

	Bank A/c	Dr.		3,80,000
	To Equity Share First Call A/c (4,00,000 – 20,000)				3,80,000
	(First call money received)

	Equity Share Second Call A/c (20,000 × 10)	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(Money due on second call)

	Bank A/c	Dr.		1,82,000
	To Equity Share Capital A/c (2,00,000 – 18,000)				1,82,000
	(Amount received on second call)

	Equity Share Capital A/c (1,800 × 100)			1,80,000
	To Equity Share Allotment A/c				12,000
	To Equity Share First Call A/c				20,000
	To Equity Share Second Call A/c				18,000
	To Equity Share Forfeiture A/c				1,30,000
	(Share were forfeited due to non-payment)

Balance Sheet of Bluechip Ltd. as at …
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	19,50,000
2. Non-Current Liabilities
3. Current Liabilities
Total		19,50,000
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents		19,50,000
Total		19,50,000

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	xxx shares of Rs 100 each		xxx
	2. Issued Share Capital
	20,000 Equity Shares of Rs 100 each		20,00,000
	3. Subscribed Capital
	20,000 Equity Shares of Rs 100 each		20,00,000
	4. Called-up and Paid-up Share Capital
	18,200 Equity shares of Rs 100 each, fully called-up	18,20,000
	Add: Share Forfeiture	1,30,000	19,50,000

2	Cash and Cash Equivalents
	Cash at Bank		19,50,000

Question 43:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		8,00,000
	To Equity Share Application A/c (20,000 × 40)				8,00,000
	(Application Money Received)

	Equity Share Application A/c	Dr.		8,00,000
	To Equity Share Capital A/c				8,00,000
	(Application money transferred to share capital)

	Equity Share Allotment A/c (20,000 × 30)	Dr.		6,00,000
	To Equity Share Capital A/c				6,00,000
	(Allotment money due)

	Bank A/c	Dr.		5,88,000
	To Equity Share Allotment A/c (6,00,000 – 12,000)				5,88,000
	(Allotment money received)

	Equity Share First Call A/c (20,000 × 20)	Dr.		4,00,000
	To Equity Share Capital A/c				4,00,000
	(Money due on first call)

	Bank A/c	Dr.		3,80,000
	To Equity Share First Call A/c (4,00,000 – 20,000)				3,80,000
	(First call money received)

	Equity Share Second Call A/c (20,000 × 10)	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(Money due on second call)

	Bank A/c	Dr.		1,82,000
	To Equity Share Capital A/c (2,00,000 – 18,000)				1,82,000
	(Amount received on second call)

	Equity Share Capital A/c (1,800 × 100)			1,80,000
	To Equity Share Allotment A/c				12,000
	To Equity Share First Call A/c				20,000
	To Equity Share Second Call A/c				18,000
	To Equity Share Forfeiture A/c				1,30,000
	(Share were forfeited due to non-payment)

Balance Sheet of Bluechip Ltd. as at …
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	19,50,000
2. Non-Current Liabilities
3. Current Liabilities
Total		19,50,000
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents		19,50,000
Total		19,50,000

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	xxx shares of Rs 100 each		xxx
	2. Issued Share Capital
	20,000 Equity Shares of Rs 100 each		20,00,000
	3. Subscribed Capital
	20,000 Equity Shares of Rs 100 each		20,00,000
	4. Called-up and Paid-up Share Capital
	18,200 Equity shares of Rs 100 each, fully called-up	18,20,000
	Add: Share Forfeiture	1,30,000	19,50,000

2	Cash and Cash Equivalents
	Cash at Bank		19,50,000

Answer:

Issued 20,000 Shares

Applied 35,000 Shares

Allotment made as		Payable as
Applied	Allotted	Application	Rs	4	Per Share
10,000	NIL	Allotment	Rs	2	Per Share
15,000	10,000	First Call	Rs	2	Per Share
10,000	10,000	Final Call	Rs	2	Per Share
35,000	20,000			10	Per Share

Cash Book
Dr.							Cr.
Date	Particulars	L.F.	Bank Rs	Date	Particulars	L.F.	Bank Rs

	Equity Share Application		1,40,000		Equity Share Application		40,000
	Equity Share Allotment		20,000
	Equity Share First Call		39,000
	Equity Share Final Call		39,000
	Equity Share Capital		1,200		Balance c/d		1,99,200
			2,39,200				2,39,200

Journal Entries
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Equity Share Application A/c	Dr.		1,00,000
	To Equity Share Capital A/c				80,000
	To Equity Share Allotment				20,000
	(Equity Share Application money of 20,000 shares at Rs 4 each transferred to Share Capital and excess money Rs 20,000 adjusted towards allotment)

	Equity Share Allotment A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Share allotment due on 20,000 shares at Rs 2 each)

	Equity Share First Call A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Share First and Final Call due on 20,000 shares at Rs 2 each)

	Calls-In-Arrears A/c	Dr.		1,000
	To Equity Share First Call A/c				1,000
	(On account of non-payment share first call money Rs 2 on 500 shares transferred to Calls-In-Arrears)

	Equity Share Final Call A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Share Final Call due)

	Calls-In-Arrears A/c	Dr.		1,000
	To Equity Share Final Call A/c				1,000
	(Final call money of 500 shares transferred to Calls-in-Arrears, on account of non-payment)

	Equity Share Capital A/c	Dr.		5,000
	To Share Forfeiture A/c				3,000
	To Calls-In-Arrears A/c				2,000
	(500 shares of Rs 10 each forfeited for the non-payment of Rs 4 per share)

	Share Forfeiture A/c	Dr.		800
	To Equity Share Capital A/c				800
	(Loss on re-issue of 200 shares at Rs 4 per share, charged from Share Forfeiture Account)

	Share Forfeiture A/c	Dr.		400
	To Capital Reserve A/c				400
	(Balance in Share Forfeiture Account of 200 re-issued shares, transferred to Capital Reserve)

As per the Schedule III of the Companies Act, 2013, Company's Balance Sheet is presented as follows.

D Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	1,98,800
b. Reserves and Surplus	2	400
2. Non-Current Liabilities
3. Current Liabilities
Total		1,99,200

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	1,99,200
Total		1,99,200

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
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
	19,700 shares of Rs 10 each	1,97,000
	Add: Shares Forfeited (300 shares × Rs 6)	1,800	1,98,800

2	Reserves and Surplus
	Capital Reserve		400

3	Cash and Cash Equivalents
	Cash at Bank		1,99,200

Working Notes:

Share Forfeiture of 200 shares

Share Forfeiture Credit (at the time of forfeiture)	6	per share
Less: Share Forfeiture Debit (at the time of reissue)	4	per share
Balance in Share Forfeiture after re-issue shares	2	per share

Capital Reserve = Balance in Share Forfeiture of reissued shares × No. of shares reissued = Rs 2 × 200 = Rs 400

Question 44:

Issued 20,000 Shares

Applied 35,000 Shares

Allotment made as		Payable as
Applied	Allotted	Application	Rs	4	Per Share
10,000	NIL	Allotment	Rs	2	Per Share
15,000	10,000	First Call	Rs	2	Per Share
10,000	10,000	Final Call	Rs	2	Per Share
35,000	20,000			10	Per Share

Cash Book
Dr.							Cr.
Date	Particulars	L.F.	Bank Rs	Date	Particulars	L.F.	Bank Rs

	Equity Share Application		1,40,000		Equity Share Application		40,000
	Equity Share Allotment		20,000
	Equity Share First Call		39,000
	Equity Share Final Call		39,000
	Equity Share Capital		1,200		Balance c/d		1,99,200
			2,39,200				2,39,200

Journal Entries
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Equity Share Application A/c	Dr.		1,00,000
	To Equity Share Capital A/c				80,000
	To Equity Share Allotment				20,000
	(Equity Share Application money of 20,000 shares at Rs 4 each transferred to Share Capital and excess money Rs 20,000 adjusted towards allotment)

	Equity Share Allotment A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Share allotment due on 20,000 shares at Rs 2 each)

	Equity Share First Call A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Share First and Final Call due on 20,000 shares at Rs 2 each)

	Calls-In-Arrears A/c	Dr.		1,000
	To Equity Share First Call A/c				1,000
	(On account of non-payment share first call money Rs 2 on 500 shares transferred to Calls-In-Arrears)

	Equity Share Final Call A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Share Final Call due)

	Calls-In-Arrears A/c	Dr.		1,000
	To Equity Share Final Call A/c				1,000
	(Final call money of 500 shares transferred to Calls-in-Arrears, on account of non-payment)

	Equity Share Capital A/c	Dr.		5,000
	To Share Forfeiture A/c				3,000
	To Calls-In-Arrears A/c				2,000
	(500 shares of Rs 10 each forfeited for the non-payment of Rs 4 per share)

	Share Forfeiture A/c	Dr.		800
	To Equity Share Capital A/c				800
	(Loss on re-issue of 200 shares at Rs 4 per share, charged from Share Forfeiture Account)

	Share Forfeiture A/c	Dr.		400
	To Capital Reserve A/c				400
	(Balance in Share Forfeiture Account of 200 re-issued shares, transferred to Capital Reserve)

As per the Schedule III of the Companies Act, 2013, Company's Balance Sheet is presented as follows.

D Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	1,98,800
b. Reserves and Surplus	2	400
2. Non-Current Liabilities
3. Current Liabilities
Total		1,99,200

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	1,99,200
Total		1,99,200

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
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
	19,700 shares of Rs 10 each	1,97,000
	Add: Shares Forfeited (300 shares × Rs 6)	1,800	1,98,800

2	Reserves and Surplus
	Capital Reserve		400

3	Cash and Cash Equivalents
	Cash at Bank		1,99,200

Working Notes:

Share Forfeiture of 200 shares

Share Forfeiture Credit (at the time of forfeiture)	6	per share
Less: Share Forfeiture Debit (at the time of reissue)	4	per share
Balance in Share Forfeiture after re-issue shares	2	per share

Capital Reserve = Balance in Share Forfeiture of reissued shares × No. of shares reissued = Rs 2 × 200 = Rs 400

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		1,05,000
	To Equity Share Application and Allotment A/c				1,05,000
	(Amount received on application and allotment)

	Equity Share Application and Allotment A/c	Dr.		1,05,000
	To Equity Share Capital A/c				1,05,000
	(Amount transferred to share capital)

	Equity Share Final Call A/c (14,000 × 2.5)	Dr.		35,000
	To Equity share Final Call A/c				35,000
	(Final call money due on 14,000 shares)

	Bank A/c	Dr.		34,250
	To Equity Share Final Call A/c [35,000 – 750 (300 × 2.5)]				34,250
	( Final call received money received except on 300 shares)

	Equity Share Capital A/c (300 × 10)	Dr.		3,000
	To Equity Share Final Call A/c (300 × 2.5)				750
	To Share Forfeiture A/c (300 × 7.5)				2,250
	(300 shares were forfeited due to the non-payment of final call)

	Bank A/c (300 × 5)	Dr.		1,500
	Share Forfeiture A/c (300 × 5)	Dr.		1,500
	To Equity Share Capital A/c (300 × 10)				3,000
	(Forfeited shares were reissued at Rs 5 each)

	Share Forfeiture A/c (2,250 – 1,500)	Dr.		750
	To Capital Reserve A/c				750
	( Profit on reissue transferred to capital reserve)

Note: Since bifurcation of Rs 7.50 has not been provided in the question, thus, we have assumed that Rs 7.50 belongs to application and allotment both.

Question 45:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		1,05,000
	To Equity Share Application and Allotment A/c				1,05,000
	(Amount received on application and allotment)

	Equity Share Application and Allotment A/c	Dr.		1,05,000
	To Equity Share Capital A/c				1,05,000
	(Amount transferred to share capital)

	Equity Share Final Call A/c (14,000 × 2.5)	Dr.		35,000
	To Equity share Final Call A/c				35,000
	(Final call money due on 14,000 shares)

	Bank A/c	Dr.		34,250
	To Equity Share Final Call A/c [35,000 – 750 (300 × 2.5)]				34,250
	( Final call received money received except on 300 shares)

	Equity Share Capital A/c (300 × 10)	Dr.		3,000
	To Equity Share Final Call A/c (300 × 2.5)				750
	To Share Forfeiture A/c (300 × 7.5)				2,250
	(300 shares were forfeited due to the non-payment of final call)

	Bank A/c (300 × 5)	Dr.		1,500
	Share Forfeiture A/c (300 × 5)	Dr.		1,500
	To Equity Share Capital A/c (300 × 10)				3,000
	(Forfeited shares were reissued at Rs 5 each)

	Share Forfeiture A/c (2,250 – 1,500)	Dr.		750
	To Capital Reserve A/c				750
	( Profit on reissue transferred to capital reserve)

Note: Since bifurcation of Rs 7.50 has not been provided in the question, thus, we have assumed that Rs 7.50 belongs to application and allotment both.

Answer:

Issued and Applied 10,000 shares of Rs 10 each

Payable as:

Application	Rs	3
Allotment	Rs	3
First Call	Rs	2
Final Call	Rs	2
		10

Books of X Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		30,000
	To Equity Share Application A/c				30,000
	(Share application money received for 10,000 shares of Rs 3 each)

	Equity Share Application A/c	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(Share application money transferred to Share Capital)

	Equity Share Allotment A/c	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(Share allotment due on 10,000 shares at Rs 3 each)

	Bank A/c	Dr.		30,000
	To Equity Share Allotment A/c				30,000
	(Share allotment money received)

	Equity Share First Call A/c	Dr.		20,000
	To Equity Share Capital A/c				20,000
	(Share first call due on 10,000 shares at Rs 2 each)

	Bank A/c	Dr.		19,800
	Calls-In-Arrears A/c	Dr.		200
	To Equity Share First Call A/c				20,000
	(Share first call of Rs 2 per share received on 9,800 shares and a holder of 100 failed to pay it)

	Equity Share Final Call A/c	Dr.		20,000
	To Equity Share Capital A/c				20,000
	(Share final call due on 10,000 shares at Rs 2 each)

	Bank A/c	Dr.		19,600
	Calls-In-Arrears A/c	Dr.		400
	To Equity Share Final Call A/c				20,000
	(Share final call of Rs 2 per share received on 9,600 shares and holders of 200 shares failed to pay it)

	Equity 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 held by A forfeited for the non-payment Rs 4 per share)

	Equity Share Capital A/c	Dr.		1,000
	To Share Forfeature A/c				800
	To Calls-in-Arrears A/c				200
	(100 shares of Rs 10 each held by B, forfeited for the non-payment of Rs 2 per share)

	Bank A/c	Dr.		1,200
	Share Forfeiture A/c	Dr.		300
	To Equity Share Capital				1,500
	(150 shares of Rs 10 each re-issued at Rs 8 per share, fully paid-up)

	Share Forfeiture A/c	Dr.		700
	To Capital Reserve A/c				700
	(Balance in Share Forfeiture Account of 150 re-issued shares, transferred to Capital Reserve)

Working Notes-

Share Forfeiture of re-issued shares

A’s Shares

Share Forfeiture (at the time of share forfeiture)	Cr.	Rs	6	per share
Share Forfeiture (at the time of re-issue)	Dr.	Rs	2	per share
Balance in Share Forfeiture (after re-issue)	Cr.	Rs	4	per share

B’s Shares

Share Forfeiture (at the time of share forfeiture )	Cr.	Rs	8	per share
Share Forfeiture(at the time of re-issue)	Dr.	Rs	2	per share
Balance in Share Forfeiture (after re-issue)	Cr.	Rs	6	per share

Calculation of Capital Reserve
Capital Reserve = Balance in Share Forfeiture after re-issue (per share) × No of shares re-issued
On re-issue of A’s shares = Rs 4 × 100 shares = Rs 400
On re-issue of B’s shares = Rs 6 × 50 shares = Rs 300
Capital Reserve 150 shares = 400 + 300 = Rs 700

Question 46:

Issued and Applied 10,000 shares of Rs 10 each

Payable as:

Application	Rs	3
Allotment	Rs	3
First Call	Rs	2
Final Call	Rs	2
		10

Books of X Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		30,000
	To Equity Share Application A/c				30,000
	(Share application money received for 10,000 shares of Rs 3 each)

	Equity Share Application A/c	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(Share application money transferred to Share Capital)

	Equity Share Allotment A/c	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(Share allotment due on 10,000 shares at Rs 3 each)

	Bank A/c	Dr.		30,000
	To Equity Share Allotment A/c				30,000
	(Share allotment money received)

	Equity Share First Call A/c	Dr.		20,000
	To Equity Share Capital A/c				20,000
	(Share first call due on 10,000 shares at Rs 2 each)

	Bank A/c	Dr.		19,800
	Calls-In-Arrears A/c	Dr.		200
	To Equity Share First Call A/c				20,000
	(Share first call of Rs 2 per share received on 9,800 shares and a holder of 100 failed to pay it)

	Equity Share Final Call A/c	Dr.		20,000
	To Equity Share Capital A/c				20,000
	(Share final call due on 10,000 shares at Rs 2 each)

	Bank A/c	Dr.		19,600
	Calls-In-Arrears A/c	Dr.		400
	To Equity Share Final Call A/c				20,000
	(Share final call of Rs 2 per share received on 9,600 shares and holders of 200 shares failed to pay it)

	Equity 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 held by A forfeited for the non-payment Rs 4 per share)

	Equity Share Capital A/c	Dr.		1,000
	To Share Forfeature A/c				800
	To Calls-in-Arrears A/c				200
	(100 shares of Rs 10 each held by B, forfeited for the non-payment of Rs 2 per share)

	Bank A/c	Dr.		1,200
	Share Forfeiture A/c	Dr.		300
	To Equity Share Capital				1,500
	(150 shares of Rs 10 each re-issued at Rs 8 per share, fully paid-up)

	Share Forfeiture A/c	Dr.		700
	To Capital Reserve A/c				700
	(Balance in Share Forfeiture Account of 150 re-issued shares, transferred to Capital Reserve)

Working Notes-

Share Forfeiture of re-issued shares

A’s Shares

Share Forfeiture (at the time of share forfeiture)	Cr.	Rs	6	per share
Share Forfeiture (at the time of re-issue)	Dr.	Rs	2	per share
Balance in Share Forfeiture (after re-issue)	Cr.	Rs	4	per share

B’s Shares

Share Forfeiture (at the time of share forfeiture )	Cr.	Rs	8	per share
Share Forfeiture(at the time of re-issue)	Dr.	Rs	2	per share
Balance in Share Forfeiture (after re-issue)	Cr.	Rs	6	per share

Calculation of Capital Reserve
Capital Reserve = Balance in Share Forfeiture after re-issue (per share) × No of shares re-issued
On re-issue of A’s shares = Rs 4 × 100 shares = Rs 400
On re-issue of B’s shares = Rs 6 × 50 shares = Rs 300
Capital Reserve 150 shares = 400 + 300 = Rs 700

Answer:

Issued capital 50,000 shares of Rs 10 each at premium of Rs 2

Applied shares 60,000

Allotment made as:		Payable as:
Applied	Alloted	Application	Rs 3
10,000	10,000	Allotment	Rs 4
20,000	15,000	First Call	Rs 2
30,000	25,000	Final Call	Rs 1
60,000	50,000		Rs 10	per share

Books of Nav Lakshmi Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		1,80,000
	To Share Application A/c				1,80,000
	(Application money received for 60,000 shares at Rs 3 each)

	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 of 50,000 shares adjusted to Share Capital and excess money adjusted on allotment)

	Share Allotment A/c	Dr.		2,00,000
	To Share Capital A/c				2,00,000
	(Allotment due on 50,000 shares at Rs 4 each)

	Bank A/c	Dr.		1,65,500
	To Share Allotment A/c				1,65,500
	(Allotment received for 48,500 shares after adjusting excess application money)

	Share First Call A/c	Dr.		1,00,000
	To Share Capital A/c				1,00,000
	(First call due on 50,000 shares at Rs 2 each)

	Bank A/c	Dr.		97,000
	To Share First Call A/c				97,000
	(First call received on 48,500 shares)

	Share Final Call A/c	Dr.		50,000
	To Share Capital A/c				50,000
	(Final call due on 50,000 shares at Rs 1)

	Bank A/c	Dr.		48,500
	To Share Final Call A/c				48,500
	(Final call received on 48,500 shares)

	Share Capital A/c	Dr.		15,000
	To Share Forfeiture A/c				6,000
	To Share Allotment A/c				4,500
	To Share First Call A/c				3,000
	To Share Final Call A/c				1,500
	(1,500 shares of Rs 10 each forfeited for the non-payment of amount due)

	Bank A/c	Dr.		8,000
	Share Forfeiture A/c	Dr.		2,000
	To 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.		2,000
	To Capital Reserve A/c				2,000
	(Balance in Share Forfeiture of 1,000 re-issued shares transferred to Capital Reserve)

Working Notes-

Number of share default

Defaulted Share

Money received on application (2,000 × Rs 3)	=	6,000
Less: money transferred to Share Capital (1,500 × Rs 3)	=	4,500
Excess money on application		1,500

Allotment due (1,500 share × Rs 4)	=	6,000
Less: Excess money on application	=	1,500
Calls-in–Arrears on Allotment		4,500

Share Allotment

Money due on Share Allotment (50,000 shares × Rs 4)	=	2,00,000
Less: Excess money on application	=	30,000
Less: Calls-in-Arrears	=	4,500
Money received on Allotment		1,65,500

Capital Reserve

Share Forfeiture Credit =	=	Rs 4	per share
Share Forfeiture Debit	=	Rs 2	per share
Balance in Share Forfeiture after re-issue		Rs 2	per share

Capital Reserve	=	Balance in share Forfeiture after re-issue (per share) × No. of shares re-issued
	=	Rs 2 × 1,000 shares
	=	Rs 2,000

Question 47:

Issued capital 50,000 shares of Rs 10 each at premium of Rs 2

Applied shares 60,000

Allotment made as:		Payable as:
Applied	Alloted	Application	Rs 3
10,000	10,000	Allotment	Rs 4
20,000	15,000	First Call	Rs 2
30,000	25,000	Final Call	Rs 1
60,000	50,000		Rs 10	per share

Books of Nav Lakshmi Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		1,80,000
	To Share Application A/c				1,80,000
	(Application money received for 60,000 shares at Rs 3 each)

	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 of 50,000 shares adjusted to Share Capital and excess money adjusted on allotment)

	Share Allotment A/c	Dr.		2,00,000
	To Share Capital A/c				2,00,000
	(Allotment due on 50,000 shares at Rs 4 each)

	Bank A/c	Dr.		1,65,500
	To Share Allotment A/c				1,65,500
	(Allotment received for 48,500 shares after adjusting excess application money)

	Share First Call A/c	Dr.		1,00,000
	To Share Capital A/c				1,00,000
	(First call due on 50,000 shares at Rs 2 each)

	Bank A/c	Dr.		97,000
	To Share First Call A/c				97,000
	(First call received on 48,500 shares)

	Share Final Call A/c	Dr.		50,000
	To Share Capital A/c				50,000
	(Final call due on 50,000 shares at Rs 1)

	Bank A/c	Dr.		48,500
	To Share Final Call A/c				48,500
	(Final call received on 48,500 shares)

	Share Capital A/c	Dr.		15,000
	To Share Forfeiture A/c				6,000
	To Share Allotment A/c				4,500
	To Share First Call A/c				3,000
	To Share Final Call A/c				1,500
	(1,500 shares of Rs 10 each forfeited for the non-payment of amount due)

	Bank A/c	Dr.		8,000
	Share Forfeiture A/c	Dr.		2,000
	To 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.		2,000
	To Capital Reserve A/c				2,000
	(Balance in Share Forfeiture of 1,000 re-issued shares transferred to Capital Reserve)

Working Notes-

Number of share default

Defaulted Share

Money received on application (2,000 × Rs 3)	=	6,000
Less: money transferred to Share Capital (1,500 × Rs 3)	=	4,500
Excess money on application		1,500

Allotment due (1,500 share × Rs 4)	=	6,000
Less: Excess money on application	=	1,500
Calls-in–Arrears on Allotment		4,500

Share Allotment

Money due on Share Allotment (50,000 shares × Rs 4)	=	2,00,000
Less: Excess money on application	=	30,000
Less: Calls-in-Arrears	=	4,500
Money received on Allotment		1,65,500

Capital Reserve

Share Forfeiture Credit =	=	Rs 4	per share
Share Forfeiture Debit	=	Rs 2	per share
Balance in Share Forfeiture after re-issue		Rs 2	per share

Capital Reserve	=	Balance in share Forfeiture after re-issue (per share) × No. of shares re-issued
	=	Rs 2 × 1,000 shares
	=	Rs 2,000

Answer:

In the books of Excel Ltd. Journal Entry
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 20,000 shares)

	Equity Share Application A/c	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(Application money transferred to Share Capital Account)

	Equity Share Allotment A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Amount due on allotment @ Rs 2 each)

	Bank A/c	Dr.		38,000
	To Equity Share Allotment A/c				38,000
	(Amount received on shares issued except on 400 shareholders)

	Equity Share First Call A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Amount due on first and final call on 20,000 shares)

	Bank A/c	Dr.		35,000
	To Equity Share First Call A/c				35,000
	(Amount received on first and final call)

	Equity Share Second Call A/c	Dr.		20,000
	To Equity Share Capital A/c				20,000
	(Amount due on second call on 20,000 shares)

	Bank A/c	Dr.		15,000
	To Equity Share Second and Final Call A/c				15,000
	(Amount received on first and final call)

	Share Capital A/c (2,500 × 8)	Dr.		20,000
	To Share Forfeiture A/c {(1,500 × 5) + 1,000 × 3}				10,500
	To Share Allotment A/c (1,000 × 2)				4,000
	To Share First Call A/c (2,500 × 2)				5,000
	To Share Second Call A/c (5,000 × 1)				5,000
	(Shares were forfeited due to the non-payment of arrears)

Balance Sheet as at March 31, 2013
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	2,08,000
b. Reserves and Surplus
2. Non-Current Liabilities
3. Current Liabilities
Total

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	… Equity Shares of Rs 10 each		xxx

	Issued Share Capital
	20,000 Equity 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
	Add: Share Forfeiture	10,500
	Less: Calls-in-Arrears	2,500	2,08,000

Working Notes:

WN 1: Table showing amount paid by different shareholders

	Application @ Rs 3	Allotment @ Rs 2	First Call @ Rs 2	Second Call @ Rs 1
15,000 shares	âœ”	âœ”	âœ”	âœ”
2,500 shares	âœ”	âœ”	âœ”	âœ˜
1,500 shares	âœ”	âœ”	âœ˜	âœ˜
1,000 shares	âœ”	âœ˜	âœ˜	âœ˜
20,000 shares	60,000 (20,000 × 3)	38,000 (19,000 × 2)	35,000 (17,500 × 2)	15,000 (15,000 × 1)

Question 48:

In the books of Excel Ltd. Journal Entry
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 20,000 shares)

	Equity Share Application A/c	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(Application money transferred to Share Capital Account)

	Equity Share Allotment A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Amount due on allotment @ Rs 2 each)

	Bank A/c	Dr.		38,000
	To Equity Share Allotment A/c				38,000
	(Amount received on shares issued except on 400 shareholders)

	Equity Share First Call A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Amount due on first and final call on 20,000 shares)

	Bank A/c	Dr.		35,000
	To Equity Share First Call A/c				35,000
	(Amount received on first and final call)

	Equity Share Second Call A/c	Dr.		20,000
	To Equity Share Capital A/c				20,000
	(Amount due on second call on 20,000 shares)

	Bank A/c	Dr.		15,000
	To Equity Share Second and Final Call A/c				15,000
	(Amount received on first and final call)

	Share Capital A/c (2,500 × 8)	Dr.		20,000
	To Share Forfeiture A/c {(1,500 × 5) + 1,000 × 3}				10,500
	To Share Allotment A/c (1,000 × 2)				4,000
	To Share First Call A/c (2,500 × 2)				5,000
	To Share Second Call A/c (5,000 × 1)				5,000
	(Shares were forfeited due to the non-payment of arrears)

Balance Sheet as at March 31, 2013
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	2,08,000
b. Reserves and Surplus
2. Non-Current Liabilities
3. Current Liabilities
Total

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	… Equity Shares of Rs 10 each		xxx

	Issued Share Capital
	20,000 Equity 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
	Add: Share Forfeiture	10,500
	Less: Calls-in-Arrears	2,500	2,08,000

Working Notes:

WN 1: Table showing amount paid by different shareholders

	Application @ Rs 3	Allotment @ Rs 2	First Call @ Rs 2	Second Call @ Rs 1
15,000 shares	âœ”	âœ”	âœ”	âœ”
2,500 shares	âœ”	âœ”	âœ”	âœ˜
1,500 shares	âœ”	âœ”	âœ˜	âœ˜
1,000 shares	âœ”	âœ˜	âœ˜	âœ˜
20,000 shares	60,000 (20,000 × 3)	38,000 (19,000 × 2)	35,000 (17,500 × 2)	15,000 (15,000 × 1)

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

Question 49:

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

Answer:

Issued and applied capital 20,000 shares of Rs 100 each

Payable as:

Application	Rs	25
Allotment	Rs	25
First Call	Rs	25
Called-up	Rs	75	per share
Final Call	Rs	25
	Rs	100	per share

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	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 Rs	Particulars	Amount Rs

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 = Rs 18,000

Question 50:

Issued and applied capital 20,000 shares of Rs 100 each

Payable as:

Application	Rs	25
Allotment	Rs	25
First Call	Rs	25
Called-up	Rs	75	per share
Final Call	Rs	25
	Rs	100	per share

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	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 Rs	Particulars	Amount Rs

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 = Rs 18,000

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 the Companies Act, 2013, 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

Question 51:

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 the Companies Act, 2013, 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

Answer:

Authorised capital 20,000 shares of Rs 100 each

Issued capital 10,000 shares

Applied 12,000 shares

	Allotment made as:
	Applied	Allotted
I	10,000	10,000
II	2,000	NIL
	12,000	10,000

Book of Tata Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		2,40,000
	To Share Application A/c				2,40,000
	(Share application money received for 12,000 shares at Rs 20 each)

	Share Application A/c	Dr.		2,40,000
	To Share Capital A/c				2,00,000
	To Bank A/c				40,000
	(Share application money of Rs 20 each for 10,000 shares transferred to Share Capital Account and money of 2,000 refunded)

	Share Allotment A/c	Dr.		3,00,000
	To Share Capital A/c				3,00,000
	(Allotment due on 10,000 shares at Rs 30 each)

	Bank A/c	Dr.		3,00,000
	To Share Allotment A/c				3,00,000
	(Share allotment money received)

	Share First Call A/c	Dr.		2,50,000
	To Share Capital A/c				2,50,000
	(First call due on 10,000 shares at Rs 25 each)

	Bank A/c	Dr.		2,50,000
	To Share First Call A/c				2,50,000
	(First call money received)

	Share Final Call A/c	Dr.		2,50,000
	To Share Capital A/c				2,50,000
	(Final call due on 10,000 shares at Rs 25 each)

	Bank A/c	Dr.		2,43,750
	Calls-In-Arrears A/c	Dr.		6,250
	To Share Final Call A/c				2,50,000
	(Final call of Rs 25 per share received from 9,750 shares and holders of 250 shares failed to pay it)

	Share Capital A/c	Dr.		12,500
	To Share Forfeiture A/c				9,375
	To Calls-in-Arrears A/c				3,125
	(125 shares of Rs 100 each forfeited for the non-payment of final call Rs 25 per share)

	Bank A/c	Dr.		11,250
	Share Forfeiture A/c	Dr.		1,250
	To Share Capital A/c				12,500
	(125 shares Rs 100 each re-issued at Rs 90 per share fully paid-up)

	Share Forfeiture A/c	Dr.		8,125
	To Capital Reserve A/c				8,125
	(Balance in Share Forfeiture Account of 125 re-issued shares transferred to Capital Reserve Account)

As per the Schedule III of the Companies Act, 2013, Company's Balance Sheet is presented as follows.

Tata Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	9,96,875
b. Reserves and Surplus	2	8,125
2. Non-Current Liabilities
3. Current Liabilities
Total		10,05,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	10,05,000
Total		10,05,000

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	20,000 shares of Rs 100 each		20,00,000
	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
	Less: Calls-in-Arrears (125 shares × Rs 25)	(3,125)	9,96,875

2	Reserves and Surplus
	Capital Reserve		8,125

3	Cash and Cash Equivalents
	Cash at Bank		10,05,000

Working Notes:

Share Forfeiture of 125 shares

Share Forfeiture Credit (at the time of forfeiture)	75	per share
Less: Share Forfeiture Debit (at the time of reissue)	10	per share
Balance in Share Forfeiture after re-issue shares	65	per share

Capital Reserve = Balance in Share Forfeiture Account of re-issued shares × No. of shares re-issued = 65 × 125 = Rs 8,125

Question 52:

Authorised capital 20,000 shares of Rs 100 each

Issued capital 10,000 shares

Applied 12,000 shares

	Allotment made as:
	Applied	Allotted
I	10,000	10,000
II	2,000	NIL
	12,000	10,000

Book of Tata Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		2,40,000
	To Share Application A/c				2,40,000
	(Share application money received for 12,000 shares at Rs 20 each)

	Share Application A/c	Dr.		2,40,000
	To Share Capital A/c				2,00,000
	To Bank A/c				40,000
	(Share application money of Rs 20 each for 10,000 shares transferred to Share Capital Account and money of 2,000 refunded)

	Share Allotment A/c	Dr.		3,00,000
	To Share Capital A/c				3,00,000
	(Allotment due on 10,000 shares at Rs 30 each)

	Bank A/c	Dr.		3,00,000
	To Share Allotment A/c				3,00,000
	(Share allotment money received)

	Share First Call A/c	Dr.		2,50,000
	To Share Capital A/c				2,50,000
	(First call due on 10,000 shares at Rs 25 each)

	Bank A/c	Dr.		2,50,000
	To Share First Call A/c				2,50,000
	(First call money received)

	Share Final Call A/c	Dr.		2,50,000
	To Share Capital A/c				2,50,000
	(Final call due on 10,000 shares at Rs 25 each)

	Bank A/c	Dr.		2,43,750
	Calls-In-Arrears A/c	Dr.		6,250
	To Share Final Call A/c				2,50,000
	(Final call of Rs 25 per share received from 9,750 shares and holders of 250 shares failed to pay it)

	Share Capital A/c	Dr.		12,500
	To Share Forfeiture A/c				9,375
	To Calls-in-Arrears A/c				3,125
	(125 shares of Rs 100 each forfeited for the non-payment of final call Rs 25 per share)

	Bank A/c	Dr.		11,250
	Share Forfeiture A/c	Dr.		1,250
	To Share Capital A/c				12,500
	(125 shares Rs 100 each re-issued at Rs 90 per share fully paid-up)

	Share Forfeiture A/c	Dr.		8,125
	To Capital Reserve A/c				8,125
	(Balance in Share Forfeiture Account of 125 re-issued shares transferred to Capital Reserve Account)

As per the Schedule III of the Companies Act, 2013, Company's Balance Sheet is presented as follows.

Tata Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	9,96,875
b. Reserves and Surplus	2	8,125
2. Non-Current Liabilities
3. Current Liabilities
Total		10,05,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	10,05,000
Total		10,05,000

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	20,000 shares of Rs 100 each		20,00,000
	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
	Less: Calls-in-Arrears (125 shares × Rs 25)	(3,125)	9,96,875

2	Reserves and Surplus
	Capital Reserve		8,125

3	Cash and Cash Equivalents
	Cash at Bank		10,05,000

Working Notes:

Share Forfeiture of 125 shares

Share Forfeiture Credit (at the time of forfeiture)	75	per share
Less: Share Forfeiture Debit (at the time of reissue)	10	per share
Balance in Share Forfeiture after re-issue shares	65	per share

Capital Reserve = Balance in Share Forfeiture Account of re-issued shares × No. of shares re-issued = 65 × 125 = Rs 8,125

Answer:

Amount payable as:

Application	Rs	2
Allotment	Rs	2
First Call	Rs	3
Final Call	Rs	3
		10	per share

Book of S Ltd. Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.			40,000
	To Share Application A/c					40,000
	(Share application money received for 20,000 shares at Rs 2 each)

	Share Application A/c	Dr.			40,000
	To Share Capital A/c					40,000
	(Application money transferred to Share Capital Account)

	Share Allotment A/c		Dr.		40,000
	To Share Capital A/c					40,000
	(Share allotment due on 20,000 shares of Rs 2 each)

	Bank A/c		Dr.		39,500
	Calls-in-Arrears A/c		Dr.		500
	To Share Allotment A/c					40,000
	(Share allotment of Rs 2 per share received on19,750 shares and holders 250 shares did not pay it)

	Share First Call A/c		Dr.		60,000
	To Share Capital A/c					60,000
	(First call due 20,000 shares at Rs 3 each)

	Bank A/c		Dr.		59,250
	Calls-in-Arrears A/c		Dr.		750
	To Share First Call A/c					60,000
	(First call of Rs 3 per share received on 19,750 shares and holders of 250 shares were default)

	Share Capital A/c		Dr.		1,750
	To Share Forfeiture A/c					500
	To Calls-In-Arrears A/c					1,250
	(250 shares of Rs 10 each Rs 7 called-up, forfeited for the non-payment of Rs 5 per share)

	Share Final Call A/c		Dr.		59,250
	To Share Capital					59,250
	(Final call due on 19,750 shares at Rs 3 each)

	Bank A/c		Dr.		59,250
	To Share Final Call A/c					59,250
	(Final call money received)

	Bank A/c		Dr.		2,125
	Calls-in-Arrears A/c		Dr.		375
	To Share Capital A/c					2,500
	(250 shares of Rs 10 each re-issued at Rs 8.5 fully paid-up)

	Share Forfeiture A/c		Dr.		125
	To Capital Reserve A/c					125
	(Balance in Share forfeiture Account after re-issue transferred to Capital Reserve)

As per the Schedule III of the Companies Act, 2013, Company's Balance Sheet is presented as follows.

S Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	2,00,000
b. Reserves and Surplus	2	125
2. Non-Current Liabilities
3. Current Liabilities
Total		2,00,125

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	2,00,125
Total		2,00,125

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
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	125

3	Cash and Cash Equivalents
	Cash at Bank	2,00,125

Working Notes:

Share Forfeiture Credit (at the time of forfeiture)	500
Less: Share Forfeiture Debit (at the time of reissue)	375
Balance in Share Forfeiture Account of re-issued shares	125

Capital Reserve = Balance in Share Forfeiture Account of re-issued shares = Rs 125

Question 53:

Amount payable as:

Application	Rs	2
Allotment	Rs	2
First Call	Rs	3
Final Call	Rs	3
		10	per share

Book of S Ltd. Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.			40,000
	To Share Application A/c					40,000
	(Share application money received for 20,000 shares at Rs 2 each)

	Share Application A/c	Dr.			40,000
	To Share Capital A/c					40,000
	(Application money transferred to Share Capital Account)

	Share Allotment A/c		Dr.		40,000
	To Share Capital A/c					40,000
	(Share allotment due on 20,000 shares of Rs 2 each)

	Bank A/c		Dr.		39,500
	Calls-in-Arrears A/c		Dr.		500
	To Share Allotment A/c					40,000
	(Share allotment of Rs 2 per share received on19,750 shares and holders 250 shares did not pay it)

	Share First Call A/c		Dr.		60,000
	To Share Capital A/c					60,000
	(First call due 20,000 shares at Rs 3 each)

	Bank A/c		Dr.		59,250
	Calls-in-Arrears A/c		Dr.		750
	To Share First Call A/c					60,000
	(First call of Rs 3 per share received on 19,750 shares and holders of 250 shares were default)

	Share Capital A/c		Dr.		1,750
	To Share Forfeiture A/c					500
	To Calls-In-Arrears A/c					1,250
	(250 shares of Rs 10 each Rs 7 called-up, forfeited for the non-payment of Rs 5 per share)

	Share Final Call A/c		Dr.		59,250
	To Share Capital					59,250
	(Final call due on 19,750 shares at Rs 3 each)

	Bank A/c		Dr.		59,250
	To Share Final Call A/c					59,250
	(Final call money received)

	Bank A/c		Dr.		2,125
	Calls-in-Arrears A/c		Dr.		375
	To Share Capital A/c					2,500
	(250 shares of Rs 10 each re-issued at Rs 8.5 fully paid-up)

	Share Forfeiture A/c		Dr.		125
	To Capital Reserve A/c					125
	(Balance in Share forfeiture Account after re-issue transferred to Capital Reserve)

As per the Schedule III of the Companies Act, 2013, Company's Balance Sheet is presented as follows.

S Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	2,00,000
b. Reserves and Surplus	2	125
2. Non-Current Liabilities
3. Current Liabilities
Total		2,00,125

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	2,00,125
Total		2,00,125

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
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	125

3	Cash and Cash Equivalents
	Cash at Bank	2,00,125

Working Notes:

Share Forfeiture Credit (at the time of forfeiture)	500
Less: Share Forfeiture Debit (at the time of reissue)	375
Balance in Share Forfeiture Account of re-issued shares	125

Capital Reserve = Balance in Share Forfeiture Account of re-issued shares = Rs 125

Answer:

Book of Wye Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Forfeiture of Shares
	*Shares of A*
	Share Capital A/c	Dr.		10,000
	To Share Forfeiture A/c				2,000
	To Calls-in-Arrears A/c				8,000
	(500 shares of Rs 20 each held by A forfeited for the non-payment of Rs 16 per share)

	*Shares of B*
	Share Capital A/c	Dr.		6,000
	To Share Forfeiture A/c				2,400
	To Calls-In-Arrears A/c				3,600
	(300 shares of Rs 20 each held by B forfeited for non-payment of Rs 12 per share)

	*Shares of C*
	Share Capital A/c	Dr.		4,000
	To Share Forfeiture A/c				2,800
	To Calls-In-Arrears A/c				1,200
	(200 shares of Rs 20 each held by C forfeited for the non-payment of Rs 6 per share)

	Re-issue of Shares
	*Shares of A*
	Bank A/c	Dr.		9,000
	Share Forfeiture A/c	Dr.		1,000
	To Share Capital A/c				10,000
	(500 shares of Rs 20 each had forfeited from A, were reissued at Rs 18 per share fully paid-up)

	*Shares of B*
	Bank A/c	Dr.		4,800
	Share Forfeiture A/c	Dr.		1,200
	To Share Capital A/c				6,000
	(300 shares of Rs 20 each had forfeited from B, reissued at Rs 16 per share )

	*Share of C*
	Bank A/c	Dr.		3,000
	Share Forfeiture A/c	Dr.		1,000
	To Share Capital A/c				4,000
	(200 share of Rs 20 each had forfeited from C, reissued at Rs 15 per share fully paid-up)

	Capital Reserve
	Share Forfeiture A/c	Dr.		4,000
	To Capital Reserve				4,000
	(Balance of Share Forfeiture Account after re-issue transferred to Capital Reserve)

Working Notes-

Share Forfeiture Credit (at the time of forfeiture) = 2,000 + 2,400 + 2,800 = Rs 7,200

Share Forfeiture Debit (at the time of re-issue) = 1,000 + 1,200 + 1,000 = Rs 3,200

Capital Reserve = Share Forfeiture Credit − Share Forfeiture Debit = 7,200 − 3,200 = Rs 4,000

Question 54:

Book of Wye Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Forfeiture of Shares
	*Shares of A*
	Share Capital A/c	Dr.		10,000
	To Share Forfeiture A/c				2,000
	To Calls-in-Arrears A/c				8,000
	(500 shares of Rs 20 each held by A forfeited for the non-payment of Rs 16 per share)

	*Shares of B*
	Share Capital A/c	Dr.		6,000
	To Share Forfeiture A/c				2,400
	To Calls-In-Arrears A/c				3,600
	(300 shares of Rs 20 each held by B forfeited for non-payment of Rs 12 per share)

	*Shares of C*
	Share Capital A/c	Dr.		4,000
	To Share Forfeiture A/c				2,800
	To Calls-In-Arrears A/c				1,200
	(200 shares of Rs 20 each held by C forfeited for the non-payment of Rs 6 per share)

	Re-issue of Shares
	*Shares of A*
	Bank A/c	Dr.		9,000
	Share Forfeiture A/c	Dr.		1,000
	To Share Capital A/c				10,000
	(500 shares of Rs 20 each had forfeited from A, were reissued at Rs 18 per share fully paid-up)

	*Shares of B*
	Bank A/c	Dr.		4,800
	Share Forfeiture A/c	Dr.		1,200
	To Share Capital A/c				6,000
	(300 shares of Rs 20 each had forfeited from B, reissued at Rs 16 per share )

	*Share of C*
	Bank A/c	Dr.		3,000
	Share Forfeiture A/c	Dr.		1,000
	To Share Capital A/c				4,000
	(200 share of Rs 20 each had forfeited from C, reissued at Rs 15 per share fully paid-up)

	Capital Reserve
	Share Forfeiture A/c	Dr.		4,000
	To Capital Reserve				4,000
	(Balance of Share Forfeiture Account after re-issue transferred to Capital Reserve)

Working Notes-

Share Forfeiture Credit (at the time of forfeiture) = 2,000 + 2,400 + 2,800 = Rs 7,200

Share Forfeiture Debit (at the time of re-issue) = 1,000 + 1,200 + 1,000 = Rs 3,200

Capital Reserve = Share Forfeiture Credit − Share Forfeiture Debit = 7,200 − 3,200 = Rs 4,000

Answer:

Authorised Capital 10,000 equity shares of Rs 10 each

Issued Capital 6,000 shares

Applied Capital 8,000 shares

Allotment made as:		Payable as:
Applied	Alloted	Application	Rs	2	per share
7,000	6,000	Allotment	Rs	4	per share
1,000	NIL	First and Final Call	Rs	4	per share
8,000	6,000			10	per share

	Cash Book
Dr.					Cr.
Date	Particulars	Bank Rs	Date	Particulars	Bank Rs
	Equity Share Application	16,000		Equity Share Application	2,000
	Equity Share Allotment	22,000
	Equity Share First and Final Call	23,600		Balance c/d	59,600
		61,600			61,600

Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs

	Equity Share Application A/c	Dr.			14,000
	To Equity Share Capital A/c					12,000
	To Equity Share Allotment A/c					2,000
	(Share application money of 6,000 shares at Rs 2 each transferred to Share Capital and Rs 2,000 adjusted towards allotment)

	Equity Share Allotment A/c	Dr.			24,000
	To Equity Share Capital A/c					24,000
	(Share allotment money due on 6,000 shares at Rs 4 each)

	Equity Share First and Final Call A/c		Dr.		24,000
	To Equity Share Capital A/c					24,000
	(Share First and Final Call due on 6,000 shares at Rs 4 each)

	Calls-in-Arrears A/c		Dr.		400
	To Equity First and Final Call A/c					400
	(A holder of 100 shares failed to pay First and Final Call money and amount due from him transferred to Calls-in-Arrears Account)

	Equity 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)

Question 55:

Answer:

Amount payable as

Application	Rs	2
Allotment	Rs	4
First Call	Rs	2
Final Call	Rs	2
		10

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		40,000
	To Share Application A/c				40,000
	(Share application money received for 20,000 shares at Rs 2 each)

	Share Application A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(Share application money of 20,000 shares at Rs 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 Rs 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 Rs 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 Rs 2 per share received on 19,000 shares along with calls-in-advance of 300 shares at Rs 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 Rs 10 each on which Rs 8 had called, forfeited for non-payment of first call Rs 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 Rs 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 Rs 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 the Companies Act, 2013, Company's Balance Sheet is presented as follows.

A Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
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 (Rs)
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

Question 56:

Amount payable as

Application	Rs	2
Allotment	Rs	4
First Call	Rs	2
Final Call	Rs	2
		10

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		40,000
	To Share Application A/c				40,000
	(Share application money received for 20,000 shares at Rs 2 each)

	Share Application A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(Share application money of 20,000 shares at Rs 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 Rs 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 Rs 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 Rs 2 per share received on 19,000 shares along with calls-in-advance of 300 shares at Rs 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 Rs 10 each on which Rs 8 had called, forfeited for non-payment of first call Rs 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 Rs 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 Rs 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 the Companies Act, 2013, Company's Balance Sheet is presented as follows.

A Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
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 (Rs)
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

Answer:

Authorised capital 50,000 shares of Rs 10 each

Issued	30,000 shares	Payable as:
Applied	46,000 shares	Application	Rs	2
		Allotment	Rs	4
		First and Final Call	Rs	4
			Rs	10


Applied Shares	Alloted Shares	Money received on Application @ Rs 2 each	Money transfers to Share Capital @ Rs 2 each	Excess Application money	Allotment due @ Rs 4 each	Excess application money adjustment on allotment
20,000	20,000	40,000	40,000	–	80,000	–
25,000	10,000	50,000	20,000	30,000	40,000	30,000
1,000	–	2,000	–	2,000 (return)
46,000	30,000	92,000	60,000		1,20,000	30,000

1. Calculation of Calls-In-Arrears on Allotment

Allotment due	Rs	1,20,000
Less: Excess Application money adjusted on allotment	Rs	30,000
Less: Money received on Allotment	Rs	86,000
Calls-in-Arrears on Allotment	Rs	Rs 4,000

2. Calculation of Calls-in-Arrears on First and Final Call

First and Final Call due 30,000 × Rs 4 per share	=	1,20,000
Less: Money received on First and Final Call	=	1,00,000
Calls in Arrears		20,000

Books of Swaraj & Co.
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		92,000
	To Share Application A/c				92,000
	(Share application money received for 46,000 shares at Rs 2 each)

	Share Application A/c	Dr.		92,000
	To Share Capital A/c				60,000
	To Share Allotment A/c				30,000
	To Bank A/c				2,000
	(Share application money of 30,000 shares at Rs 2 each transferred to Share Capital, Rs 30,000 adjusted towards allotment and Rs 2,000 refunded)

	Share Allotment A/c	Dr.		1,20,000
	To Share Capital A/c				1,20,000
	(Share allotment due on 30,000 shares at Rs 4 each)

	Bank A/c	Dr.		86,000
	Calls-in-Arrears A/c	Dr.		4,000
	To Share Allotment A/c				90,000
	(Share allotment money received and arrears 1,000 shares transferred to Calls-in-Arrears)

	Share First and Final Call A/c	Dr.		1,20,000
	To Share Capital A/c				1,20,000
	(Share first and final call due on 30,000 shares at Rs 4 each)

	Bank A/c	Dr.		1,00,000
	Call-In-Arrears A/c	Dr.		20,000
	To Share First and Final Call A/c				1,20,000
	(Share first and final call received on 25,000 shares and holders of 5,000 shares failed to pay it)

	Share Capital A/c (1,000×10)	Dr.		10,000
	To Share Forfeiture A/c				2,000
	To Calls-In-Arrears A/c				8,000
	(1,000 shares of Rs 10 each forfeited for the non-payment allotment and call)

Question 57:

Authorised capital 50,000 shares of Rs 10 each

Issued	30,000 shares	Payable as:
Applied	46,000 shares	Application	Rs	2
		Allotment	Rs	4
		First and Final Call	Rs	4
			Rs	10


Applied Shares	Alloted Shares	Money received on Application @ Rs 2 each	Money transfers to Share Capital @ Rs 2 each	Excess Application money	Allotment due @ Rs 4 each	Excess application money adjustment on allotment
20,000	20,000	40,000	40,000	–	80,000	–
25,000	10,000	50,000	20,000	30,000	40,000	30,000
1,000	–	2,000	–	2,000 (return)
46,000	30,000	92,000	60,000		1,20,000	30,000

1. Calculation of Calls-In-Arrears on Allotment

Allotment due	Rs	1,20,000
Less: Excess Application money adjusted on allotment	Rs	30,000
Less: Money received on Allotment	Rs	86,000
Calls-in-Arrears on Allotment	Rs	Rs 4,000

2. Calculation of Calls-in-Arrears on First and Final Call

First and Final Call due 30,000 × Rs 4 per share	=	1,20,000
Less: Money received on First and Final Call	=	1,00,000
Calls in Arrears		20,000

Books of Swaraj & Co.
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		92,000
	To Share Application A/c				92,000
	(Share application money received for 46,000 shares at Rs 2 each)

	Share Application A/c	Dr.		92,000
	To Share Capital A/c				60,000
	To Share Allotment A/c				30,000
	To Bank A/c				2,000
	(Share application money of 30,000 shares at Rs 2 each transferred to Share Capital, Rs 30,000 adjusted towards allotment and Rs 2,000 refunded)

	Share Allotment A/c	Dr.		1,20,000
	To Share Capital A/c				1,20,000
	(Share allotment due on 30,000 shares at Rs 4 each)

	Bank A/c	Dr.		86,000
	Calls-in-Arrears A/c	Dr.		4,000
	To Share Allotment A/c				90,000
	(Share allotment money received and arrears 1,000 shares transferred to Calls-in-Arrears)

	Share First and Final Call A/c	Dr.		1,20,000
	To Share Capital A/c				1,20,000
	(Share first and final call due on 30,000 shares at Rs 4 each)

	Bank A/c	Dr.		1,00,000
	Call-In-Arrears A/c	Dr.		20,000
	To Share First and Final Call A/c				1,20,000
	(Share first and final call received on 25,000 shares and holders of 5,000 shares failed to pay it)

	Share Capital A/c (1,000×10)	Dr.		10,000
	To Share Forfeiture A/c				2,000
	To Calls-In-Arrears A/c				8,000
	(1,000 shares of Rs 10 each forfeited for the non-payment allotment and call)

Answer:

Issued and Applied 10,000 Shares of Rs 10 each

					A		B		C		Paid-up Shares
Application	Rs	1	(10,000							=	10,000)
Allotment	Rs	2	(10,000	–	200					=	9,800)
First Call	Rs	3	(10,000	–	200	–	150			=	9,650)
Second and Final Call	Rs	4	(10,000	–	200	–	150	–	50	=	9,600)
		10

Books of X Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		10,000
	To Equity Share Application A/c				10,000
	(Share application received for 10,000 shares at Re 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 Rs 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 Rs 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 Rs 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 Rs 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 Re 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 Rs 10 each held by B forfeited for the non-payment of two calls Rs 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 Rs 10 each held by C forfeited for the non-payment of final call Rs 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 Rs 10 each re-issued at Rs 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	Rs	200	Cr.
Share Forfeiture of 200 shares held by B	Rs	450	Cr.
Share Forfeiture of 300 shares held by C	Rs	300	Cr.
Total Share Forfeiture credit (at the time of cancellation of shares)	Rs	950

Calculation of Capital Reserve

Total Share Forfeiture (at the time of cancellation of shares) = Rs 950

Less: Total Share Forfeiture (at the time of re-issue of shares) = Rs (200)

Capital Reserve = Rs 750

Question 58:

Issued and Applied 10,000 Shares of Rs 10 each

					A		B		C		Paid-up Shares
Application	Rs	1	(10,000							=	10,000)
Allotment	Rs	2	(10,000	–	200					=	9,800)
First Call	Rs	3	(10,000	–	200	–	150			=	9,650)
Second and Final Call	Rs	4	(10,000	–	200	–	150	–	50	=	9,600)
		10

Books of X Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		10,000
	To Equity Share Application A/c				10,000
	(Share application received for 10,000 shares at Re 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 Rs 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 Rs 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 Rs 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 Rs 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 Re 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 Rs 10 each held by B forfeited for the non-payment of two calls Rs 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 Rs 10 each held by C forfeited for the non-payment of final call Rs 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 Rs 10 each re-issued at Rs 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	Rs	200	Cr.
Share Forfeiture of 200 shares held by B	Rs	450	Cr.
Share Forfeiture of 300 shares held by C	Rs	300	Cr.
Total Share Forfeiture credit (at the time of cancellation of shares)	Rs	950

Calculation of Capital Reserve

Total Share Forfeiture (at the time of cancellation of shares) = Rs 950

Less: Total Share Forfeiture (at the time of re-issue of shares) = Rs (200)

Capital Reserve = Rs 750

Answer:

Journal
In the books of Exe Ltd.
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
Case 1	Equity Share Capital A/c (800 × 10)	Dr.		8,000
	To Equity Share First Call A/c (800 × 2)				1,600
	To Equity Share Second and Final Call A/c (800 × 2)				1,600
	To Share Forfeiture A/c (800 × 6)				4,800
	(800 shares were forfeited due to the non-payment of first and final call)

Case 2	Equity Share Capital A/c (800 × 8)	Dr.		6,400
	Securities Premium Reserve A/c (800 × 2)			1,600
	To Equity Share Allotment A/c (800 × 5)				4,000
	To Equity Share First Call A/c (800 × 2)				1,600
	To Share Forfeiture A/c (800 × 3)				2,400
	(800 shares were forfeited due to the non-payment of allotment and first call money)

Question 59:

Journal
In the books of Exe Ltd.
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
Case 1	Equity Share Capital A/c (800 × 10)	Dr.		8,000
	To Equity Share First Call A/c (800 × 2)				1,600
	To Equity Share Second and Final Call A/c (800 × 2)				1,600
	To Share Forfeiture A/c (800 × 6)				4,800
	(800 shares were forfeited due to the non-payment of first and final call)

Case 2	Equity Share Capital A/c (800 × 8)	Dr.		6,400
	Securities Premium Reserve A/c (800 × 2)			1,600
	To Equity Share Allotment A/c (800 × 5)				4,000
	To Equity Share First Call A/c (800 × 2)				1,600
	To Share Forfeiture A/c (800 × 3)				2,400
	(800 shares were forfeited due to the non-payment of allotment and first call money)

Answer:

Issued and applied capital 10,000 shares of Rs 20 each with Rs 2 premium.

Application and Allotment	=	Rs 12	(10+2)
First Call	=	Rs 2
		Rs 14	(12+2) Called-up

Books of A Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		1,20,000
	To Share Application and Allotment A/c				1,20,000
	(Share Application and Allotment money received for 10,000 shares at Rs 12 each)

	Share Application and Allotment A/c	Dr.		1,20,000
	To Share Capital A/c				1,00,000
	To Securities Premium A/c				20,000
	(Share Application and Allotment transferred to Share Capital and Securities Premium at Rs 10 and Rs 2 each respectively)

	Share First Call A/c	Dr.		20,000
	To Share Capital A/c				20,000
	(Share first call due on 10,000 shares at Rs 2 each)

	Bank A/c	Dr.		19,000
	Calls-in-Arrears A/c	Dr.		1,000
	To Share First Call A/c				20,000
	(Share first call received on 9,500 shares and a holder of 500 shares failed to pay it)

	Share Capital A/c (500×12)	Dr.		6,000
	To Share Forfeiture A/c (500×10)				5,000
	To Calls-in-Arrears A/c (500×2)				1,000
	(500 shares of Rs 20 each on which Rs 12 paid-up forfeited for the non-payment of Rs 2 each)

	Bank A/c	Dr.		8,000
	Share Forfeiture A/c	Dr.		2,000
	To Share Capital A/c				10,000
	(500 shares of Rs 20 each re-issued at Rs 16 each fully paid-up)

	Share Forfeiture A/c	Dr.		3,000
	To Capital Reserve A/c				3,000
	(Balance in Share Forfeiture after re-issued transferred to Capital Reserve)

Working Note-

Capital Reserve	=	Share Forfeiture Cr. – Share Forfeiture Dr.
	=	5,000 – 2,000
	=	Rs 3,000

Question 60:

Issued and applied capital 10,000 shares of Rs 20 each with Rs 2 premium.

Application and Allotment	=	Rs 12	(10+2)
First Call	=	Rs 2
		Rs 14	(12+2) Called-up

Books of A Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		1,20,000
	To Share Application and Allotment A/c				1,20,000
	(Share Application and Allotment money received for 10,000 shares at Rs 12 each)

	Share Application and Allotment A/c	Dr.		1,20,000
	To Share Capital A/c				1,00,000
	To Securities Premium A/c				20,000
	(Share Application and Allotment transferred to Share Capital and Securities Premium at Rs 10 and Rs 2 each respectively)

	Share First Call A/c	Dr.		20,000
	To Share Capital A/c				20,000
	(Share first call due on 10,000 shares at Rs 2 each)

	Bank A/c	Dr.		19,000
	Calls-in-Arrears A/c	Dr.		1,000
	To Share First Call A/c				20,000
	(Share first call received on 9,500 shares and a holder of 500 shares failed to pay it)

	Share Capital A/c (500×12)	Dr.		6,000
	To Share Forfeiture A/c (500×10)				5,000
	To Calls-in-Arrears A/c (500×2)				1,000
	(500 shares of Rs 20 each on which Rs 12 paid-up forfeited for the non-payment of Rs 2 each)

	Bank A/c	Dr.		8,000
	Share Forfeiture A/c	Dr.		2,000
	To Share Capital A/c				10,000
	(500 shares of Rs 20 each re-issued at Rs 16 each fully paid-up)

	Share Forfeiture A/c	Dr.		3,000
	To Capital Reserve A/c				3,000
	(Balance in Share Forfeiture after re-issued transferred to Capital Reserve)

Working Note-

Capital Reserve	=	Share Forfeiture Cr. – Share Forfeiture Dr.
	=	5,000 – 2,000
	=	Rs 3,000

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Capital A/c (100 × 10)	Dr.		1,000
	Securities Premium Reserve A/c (100 × 2)	Dr.		200
	To Equity Share Allotment A/c (100 × 4)				400
	To Equity Share First Call A/c (100 × 4)				400
	To Share Forfeiture A/c (100 × 4)				400
	(100 shares were forfeited due to the non-payment of allotment and call money)

	Bank A/c (100 × 11)	Dr.		1,100
	To Equity Share Capital A/c (100 × 10)				1,000
	To Securities Premium Reserve A/c (100 × 1)				100
	(Forfeited shares were reissued @ Rs 11 each)

	Share Forfeiture A/c	Dr.		400
	To Capital Reserve A/c				400
	(Profit on reissue transferred to capital reserve)

Question 61:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Capital A/c (100 × 10)	Dr.		1,000
	Securities Premium Reserve A/c (100 × 2)	Dr.		200
	To Equity Share Allotment A/c (100 × 4)				400
	To Equity Share First Call A/c (100 × 4)				400
	To Share Forfeiture A/c (100 × 4)				400
	(100 shares were forfeited due to the non-payment of allotment and call money)

	Bank A/c (100 × 11)	Dr.		1,100
	To Equity Share Capital A/c (100 × 10)				1,000
	To Securities Premium Reserve A/c (100 × 1)				100
	(Forfeited shares were reissued @ Rs 11 each)

	Share Forfeiture A/c	Dr.		400
	To Capital Reserve A/c				400
	(Profit on reissue transferred to capital reserve)

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Capital A/c (750 × 100)	Dr.		75,000
	Securities Premium Reserve A/c (250 × 20)	Dr.		5,000
	To Equity Share Allotment A/c (250 × 50)				12,500
	To Equity Share First Call A/c (750 × 40)				30,000
	To Share Forfeiture A/c				37,500
	(750 shares of Asha and Neeru were forfeited)

	Bank A/c (375 × 80)	Dr.		30,000
	Securities Premium Reserve A/c (375 × 20)	Dr.		7,500
	To Equity Share Capital A/c (375 × 100)				37,500
	(Out of the forfeited shares, 375 shares were reissued)

	Share Forfeiture A/c (WN)	Dr.		7,500
	To Capital Reserve A/c				7,500
	(Profit on reissue transferred to Capital Reserve)

Balance Sheet of D Ltd. (Before Forfeiture) as at ....
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	24,57,500
b. Reserves & Surplus	2	5,00,000
2. Non-Current Liabilities
3. Current Liabilities
Total		29,57,500
II. Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets
2. Current Assets
a. Cash and Cash Equivalents	3	29,57,500
Total		29,57,500

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	xxx shares of Rs 100 each		xxx
	2. Issued Share Capital
	25,000 Equity shares of Rs 100 each		25,00,000
	3. Subscribed Capital
	25,000 Equity shares of Rs 100 each		25,00,000
	4. Called-up and Paid-up Share Capital
	25,000 Equity shares of Rs 100 each	25,00,000
	Less: Calls-in-Arrears	42,500	24,57,500
			24,57,500
2	Reserve & Surplus
	Securities Premium Reserve		5,00,000

3	Cash and Cash Equivalents
	Cash at Bank		29,57,500

Balance Sheet of D Ltd. (After Forfeiture) as at ....
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	24,62,500
b. Reserves & Surplus	2	4,95,000
2. Non-Current Liabilities
3. Current Liabilities
Total		29,57,500
II. Assets
1. Non-Current Assets
a) Fixed Assets
i) Tangible Assets
2. Current Assets
Cash and Cash Equivalents	3	29,57,500
Total		29,57,500

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	xxx shares of Rs 100 each		xxx
	2. Issued Share Capital		–
	25,000 Equity shares of Rs 100 each		25,00,000
	3. Subscribed Capital		–
	25,000 Equity shares of Rs 100 each		25,00,000
	4. Called-up and Paid-up Share Capital
	24,250 Equity shares of Rs 100 each	24,25,000
	Add: Share Forfeiture	37,500	24,62,500
			24,62,500
2	Reserves & Surplus
	Securities Premium Reserve		4,95,000

3	Cash and Cash Equivalents
	Cash at Bank		29,57,500

Balance Sheet of D Ltd. (After Reissue) as at ....
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	24,85,000
b. Reserves & Surplus	2	5,02,500
2. Non-Current Liabilities
3. Current Liabilities
Total		29,87,500
II. Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets
2. Current Assets
Cash and Cash Equivalents	3	29,87,500
Total		29,87,500

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	xxx shares of Rs 100 each		xxx
	2. Issued Share Capital		–
	25,000 Equity shares of Rs 100 each		25,00,000
	3. Subscribed Capital		–
	25,000 Equity shares of Rs 100 each		25,00,000
	4. Called-up and Paid-up Share Capital
	24,625 Equity shares of Rs 100 each	24,62,500
	Add: Share Forfeited	22,500	24,85,500
			24,85,500
2	Reserves & Surplus
	Securities Premium Reserve		4,95,000
	Capital Reserve		7,500
			5,02,500
3	Cash and Cash Equivalents
	Cash at Bank		29,87,500

Working Notes: Calculation of Capital Reserve

$Asha' s Shares (reissued all shares, i . e . 250) \begin{array}{lcc} Share Forfeiture (Cr .) & = & 7, 500 \\ L e s s : Share Forfeiture (Dr .) & = & 5, 000 \\ Capital Reserve & = & 2, 500 \end{array}$

$Neeru' s Shares (reissued 125 shares) \begin{array}{lcl} Share Forfeiture (Cr .) & = & 7, 500 (\frac{30, 000}{500} \times 125) \\ L e s s : Share Forfeiture (Dr .) & = & 2, 500 \\ Capital Reserve & = & 5, 000 \end{array}$

Question 62:

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 the Companies Act, 2013, 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

Question 63:

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 the Companies Act, 2013, 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

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Capital A/c (200 × 10)	Dr.		2,000
	To Equity Share Final Call A/c (200 × 3)				600
	To Equity Share Forfeiture A/c (200 × 7)				1,400
	(200 shares were forfeited due to the non-payment of final call money)

	Bank A/c (100 × 12)	Dr.		1,200
	To Equity Share Capital A/c (100 × 10)				1,000
	To Securities Premium Reserve A/c (100 × 2)				200
	(100 forfeited shares were reissued @ 12 each)

	Equity Share Forfeiture A/c	Dr.		700
	To Capital Reserve A/c				700
	(Profit on reissue transferred to capital reserve)

Question 64:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Capital A/c (200 × 10)	Dr.		2,000
	To Equity Share Final Call A/c (200 × 3)				600
	To Equity Share Forfeiture A/c (200 × 7)				1,400
	(200 shares were forfeited due to the non-payment of final call money)

	Bank A/c (100 × 12)	Dr.		1,200
	To Equity Share Capital A/c (100 × 10)				1,000
	To Securities Premium Reserve A/c (100 × 2)				200
	(100 forfeited shares were reissued @ 12 each)

	Equity Share Forfeiture A/c	Dr.		700
	To Capital Reserve A/c				700
	(Profit on reissue transferred to capital reserve)

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Capital A/c (90 × 10)	Dr.		900
	Securities Premium Reserve A/c (90 × 2)	Dr.		180
	To Equity Share Allotment A/c (WN)				414
	To Equity Share First Call A/c (90 × 5)				450
	To Equity Share Forfeiture A/c				216
	(Shares forfeited due to non-payment of allotment and call money)

	Bank A/c (30 × 9)	Dr.		270
	Equity Share Forfeiture A/c (30 × 1)	Dr.		30
	To Equity Share Capital A/c (30 × 10)				300
	(Out of the forfeited shares, 30 shares were reissued)

	Equity Share Forfeiture A/c	Dr.		42
	To Capital Reserve A/c				42
	(Profit on reissue transferred to Capital Reserve)

Working Notes:

WN1: Calculation of unpaid amount on allotment

Shares applied by Ram = 108
Shares allotted to Ram = 90
Excess money received = 36 (18 × 2)
Amount due on allotment = 450 (90 × 5)
∴ Unpaid amount on allotment = Rs 414

WN2: Calculation of capital reserve

Share forfeiture (Cr.) = 216

\begin{array}{lcc} Amount credited in share forfeiture for 90 shares = \frac{216}{90} \times 30 & = & 72 \\ L e s s : Amount debited in share forfeiture & = & 30 \\ = & 42 \end{array}

Question 65:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Capital A/c (90 × 10)	Dr.		900
	Securities Premium Reserve A/c (90 × 2)	Dr.		180
	To Equity Share Allotment A/c (WN)				414
	To Equity Share First Call A/c (90 × 5)				450
	To Equity Share Forfeiture A/c				216
	(Shares forfeited due to non-payment of allotment and call money)

	Bank A/c (30 × 9)	Dr.		270
	Equity Share Forfeiture A/c (30 × 1)	Dr.		30
	To Equity Share Capital A/c (30 × 10)				300
	(Out of the forfeited shares, 30 shares were reissued)

	Equity Share Forfeiture A/c	Dr.		42
	To Capital Reserve A/c				42
	(Profit on reissue transferred to Capital Reserve)

Working Notes:

WN1: Calculation of unpaid amount on allotment

Shares applied by Ram = 108
Shares allotted to Ram = 90
Excess money received = 36 (18 × 2)
Amount due on allotment = 450 (90 × 5)
∴ Unpaid amount on allotment = Rs 414

WN2: Calculation of capital reserve

Share forfeiture (Cr.) = 216

\begin{array}{lcc} Amount credited in share forfeiture for 90 shares = \frac{216}{90} \times 30 & = & 72 \\ L e s s : Amount debited in share forfeiture & = & 30 \\ = & 42 \end{array}

Answer:

Issued capital 50,000 shares at Rs 10 each with a premium Rs 2

Applied shares 75,000

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 2	per share
60,000	50,000	Allotment	Rs 5	(3 + 2) per share
15,000	NIL	First Call	Rs 2	per share
		Final Call	Rs 3	per share
75,000	50,000		Rs 12	(10 + 2) per share

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		1,50,000
	To Equity Share Application A/c				1,50,000
	(Share application money received for 75,000 shares of at Rs 2 each)

	Equity Share Application A/c	Dr.		1,50,000
	To Equity Share Capital A/c				1,00,000
	To Equity Share Allotment A/c				20,000
	To Bank A/c				30,000
	(Share application of 50,000 shares transferred to Share Capital, Rs 20,000 adjusted on allotment and balance money Rs 30,000 refunded)

	Equity Share Allotment A/c	Dr.		2,50,000
	To Equity Share Capital A/c				1,50,000
	To securities Premium A/c				1,00,000
	(Share Allotment due on 50,000 shares at Rs 5 per share including Rs 2 premium)

	Bank A/c	Dr.		2,20,800
	To Equity Share Allotment A/c				2,20,800
	(Equity share allotment money received from 48,000 shares after adjusting excess money on application)

	Equity Share First Call A/c	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(First call due on 50,000 shares at Rs 2 each)

	Bank A/c	Dr.		91,000
	To Equity Share First Call A/c				91,000
	(First call received on 45,500 shares)

	Equity Share Final Call A/c	Dr.		1,50,000
	To Equity Share Capital A/c				1,50,000
	(Final call due on 50,000 shares at Rs 3 each)

	Bank A/c	Dr.		1,36,500
	To Equity Share Final Call A/c				1,36,500
	(Final call received on 45,500 shares)

	Equity Share Capital A/c	Dr.		20,000
	Securities Premium A/c	Dr.		4,000
	To Share Forfeiture A/c				4,800
	To Equity Share Allotment A/c				9,200
	To Equity Share First Call A/c				4,000
	To Equity Share Final Call A/c				6,000
	(2,000 shares held by A, forfeited for the non-payment)

	Equity Share Capital A/c	Dr.		25,000
	To Share Forfeiture A/c				12,500
	To Equity Share First Call A/c				5,000
	To Equity Share Final Call A/c				7,500
	(2,500 shares held by B forfeited, for non-payment)

	Bank A/c	Dr.		36,000
	Share Forfeiture A/c	Dr.		9,000
	To Equity Share Capital A/c				45,000
	(4,500 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		8,300
	To Capital Reserve A/c				8,300
	(Balance in Share Forfeiture after re-issue transferred to Capital Reserve)

Working Note:
A’s Share
Number of shares applied =

= 2,400 shares

Money received on application (2,400 shares × Rs 2)	=	Rs 4,800
Less: Money transferred to Share Capital (2,000 shares × Rs 2)	=	Rs 4,000
Excess money on application		800

Allotment due (2,000 shares × Rs 5)	=	10,000
Less: Excess on money application	=	800
Calls-in-Arrears on Allotment		9,200

Share Allotment

Share Allotment due (50,000 shares × Rs 5)	=	2,50,000
Less: Adjustment of excess application money	=	(20,000)
Less: Calls-in-Arrears		(9,200)
Money received on Allotment		2,20,800

Share First Call

Share First Call due (50,000 × Rs 2)	=	1,00,000
Less: Calls in Arrears on shares held by A (2,000 × Rs 2)	=	4,000
Less: Calls-in-Arrears on shares held by B (2,500 × Rs 2)	=	5,000
Amount received on Share First Call		91,000

Share Final Call

Share Final Call due 50,000 Shares × Rs 3	=	1,50,000
Less: Calls-in-Arrears on shares held by A (2,000 × Rs 3)	=	6,000
Less: Calls-in-Arrears on shares held by S (2,500 × Rs 3)	=	7,500
Money received on First Call		1,36,500

Capital Reserve

Share Forfeiture Credit on A’s shares	=	4,800	(received from A)
Share Forfeiture Credit on B’s share (2,500 × Rs 5)	=	12,500	(received from B excluding premium)
Total Share Forfeiture Credit	=	17,300
Share Forfeiture Debit (4,500 shares × Rs 2)		9,000
Balance in Share Forfeiture after re-issue		8,300

Capital Reserve = Balance in Share Forfeiture after re-issue
= Rs 8,300

Question 66:

Issued capital 50,000 shares at Rs 10 each with a premium Rs 2

Applied shares 75,000

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 2	per share
60,000	50,000	Allotment	Rs 5	(3 + 2) per share
15,000	NIL	First Call	Rs 2	per share
		Final Call	Rs 3	per share
75,000	50,000		Rs 12	(10 + 2) per share

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		1,50,000
	To Equity Share Application A/c				1,50,000
	(Share application money received for 75,000 shares of at Rs 2 each)

	Equity Share Application A/c	Dr.		1,50,000
	To Equity Share Capital A/c				1,00,000
	To Equity Share Allotment A/c				20,000
	To Bank A/c				30,000
	(Share application of 50,000 shares transferred to Share Capital, Rs 20,000 adjusted on allotment and balance money Rs 30,000 refunded)

	Equity Share Allotment A/c	Dr.		2,50,000
	To Equity Share Capital A/c				1,50,000
	To securities Premium A/c				1,00,000
	(Share Allotment due on 50,000 shares at Rs 5 per share including Rs 2 premium)

	Bank A/c	Dr.		2,20,800
	To Equity Share Allotment A/c				2,20,800
	(Equity share allotment money received from 48,000 shares after adjusting excess money on application)

	Equity Share First Call A/c	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(First call due on 50,000 shares at Rs 2 each)

	Bank A/c	Dr.		91,000
	To Equity Share First Call A/c				91,000
	(First call received on 45,500 shares)

	Equity Share Final Call A/c	Dr.		1,50,000
	To Equity Share Capital A/c				1,50,000
	(Final call due on 50,000 shares at Rs 3 each)

	Bank A/c	Dr.		1,36,500
	To Equity Share Final Call A/c				1,36,500
	(Final call received on 45,500 shares)

	Equity Share Capital A/c	Dr.		20,000
	Securities Premium A/c	Dr.		4,000
	To Share Forfeiture A/c				4,800
	To Equity Share Allotment A/c				9,200
	To Equity Share First Call A/c				4,000
	To Equity Share Final Call A/c				6,000
	(2,000 shares held by A, forfeited for the non-payment)

	Equity Share Capital A/c	Dr.		25,000
	To Share Forfeiture A/c				12,500
	To Equity Share First Call A/c				5,000
	To Equity Share Final Call A/c				7,500
	(2,500 shares held by B forfeited, for non-payment)

	Bank A/c	Dr.		36,000
	Share Forfeiture A/c	Dr.		9,000
	To Equity Share Capital A/c				45,000
	(4,500 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		8,300
	To Capital Reserve A/c				8,300
	(Balance in Share Forfeiture after re-issue transferred to Capital Reserve)

Working Note:
A’s Share
Number of shares applied =

= 2,400 shares

Money received on application (2,400 shares × Rs 2)	=	Rs 4,800
Less: Money transferred to Share Capital (2,000 shares × Rs 2)	=	Rs 4,000
Excess money on application		800

Allotment due (2,000 shares × Rs 5)	=	10,000
Less: Excess on money application	=	800
Calls-in-Arrears on Allotment		9,200

Share Allotment

Share Allotment due (50,000 shares × Rs 5)	=	2,50,000
Less: Adjustment of excess application money	=	(20,000)
Less: Calls-in-Arrears		(9,200)
Money received on Allotment		2,20,800

Share First Call

Share First Call due (50,000 × Rs 2)	=	1,00,000
Less: Calls in Arrears on shares held by A (2,000 × Rs 2)	=	4,000
Less: Calls-in-Arrears on shares held by B (2,500 × Rs 2)	=	5,000
Amount received on Share First Call		91,000

Share Final Call

Share Final Call due 50,000 Shares × Rs 3	=	1,50,000
Less: Calls-in-Arrears on shares held by A (2,000 × Rs 3)	=	6,000
Less: Calls-in-Arrears on shares held by S (2,500 × Rs 3)	=	7,500
Money received on First Call		1,36,500

Capital Reserve

Share Forfeiture Credit on A’s shares	=	4,800	(received from A)
Share Forfeiture Credit on B’s share (2,500 × Rs 5)	=	12,500	(received from B excluding premium)
Total Share Forfeiture Credit	=	17,300
Share Forfeiture Debit (4,500 shares × Rs 2)		9,000
Balance in Share Forfeiture after re-issue		8,300

Capital Reserve = Balance in Share Forfeiture after re-issue
= Rs 8,300

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		1,20,000
	To Equity Share Application A/c (60,000 × 2)				1,20,000
	(Application money received for 60,000 shares)

	Equity Share Application A/c	Dr.		1,20,000
	To Equity Share Capital A/c (40,000 × 2)				80,000
	To Bank A/c (12,000 × 2)				24,000
	To Equity Share Allotment A/c				16,000
	(Application money adjusted)

	Equity Share Allotment A/c (40,000 × 5)	Dr.		2,00,000
	To Equity Share Capital A/c (40,000 × 3)				1,20,000
	To Securities Premium Reserve A/c (40,000 × 2)				80,000
	(Allotment money due)

	Bank A/c	Dr.		1,76,640
	To Equity Share Allotment A/c (WN 2) (2,00,000 – 16,000 – 7,360)				1,76,640
	(Allotment money received)

	Equity Share First Call A/c	Dr.		80,000
	To Equity Share Capital A/c (40,000 × 2)				80,000
	(Money due on first call)

	Bank A/c	Dr.		72,800
	To Equity Share First Call A/c (80,000 – 3,200 – 4,000)				72,800
	(Money received on first call)

	Equity Share Second and Final Call A/c	Dr.		1,20,000
	To Equity Share Capital A/c (40,000 × 3)				1,20,000
	(Money due on second call)

	Bank A/c	Dr.		1,09,200
	To Equity Share Second and Final Call A/c (1,20,000 – 4,800 – 6,000)				1,09,200
	(Money received on second call)

	Equity Share Capital A/c	Dr.		36,000
	Securities Premium Reserve A/c (1,600 × 2)	Dr.		3,200
	To Equity Share Allotment A/c				7,360
	To Equity Share First Call A/c				7,200
	To Equity Share Second Call A/c				10,800
	To Equity Share Forfeiture A/c				13,840
	( Share forfeited)

	Bank A/c (3,600 × 8)	Dr.		28,800
	Equity Share Forfeiture A/c	Dr.		7,200
	To Equity Share Capital A/c				36,000
	(Forfeited shares reissued at Rs 8 per share)

	Equity Share Forfeiture A/c	Dr.		6,640
	To Capital Reserve A/c (13,840 – 7,200)				6,640
	(Profit on reissue transferred to capital reserve)

Working Note:

WN1: Computation Table

Category	Shares Applied	Shares Allotted	App. money received @ Rs 2 each	Amount trsfd. to Share Capital Account @ Rs 2 each	Excess money	Excess money (utilised on allotment)	Money refunded
I	48,000	40,000	96,000	80,000	16,000	16,000	–
II	12,000	–	24,000	–	–	–	24,000
Total	60,000	40,000	1,20,000	80,000	16,000	16,000	24,000

WN2: Calculation of unpaid amount on allotment

$\begin{array}{l} Share Alloted to Ram = 1, 600 shares \\ Shares Applied by Ram = \frac{1, 600 \times 48, 000}{40, 000} = 1, 920 shares \\ Excess amount received on application = 320 \times 2 = Rs 640 \\ Amount due on Allotment = Rs 8, 000 (1, 600 \times 5) \\ ∴ Unpaid amount on allotment = Rs 7, 360 \end{array}$

Question 67:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		1,20,000
	To Equity Share Application A/c (60,000 × 2)				1,20,000
	(Application money received for 60,000 shares)

	Equity Share Application A/c	Dr.		1,20,000
	To Equity Share Capital A/c (40,000 × 2)				80,000
	To Bank A/c (12,000 × 2)				24,000
	To Equity Share Allotment A/c				16,000
	(Application money adjusted)

	Equity Share Allotment A/c (40,000 × 5)	Dr.		2,00,000
	To Equity Share Capital A/c (40,000 × 3)				1,20,000
	To Securities Premium Reserve A/c (40,000 × 2)				80,000
	(Allotment money due)

	Bank A/c	Dr.		1,76,640
	To Equity Share Allotment A/c (WN 2) (2,00,000 – 16,000 – 7,360)				1,76,640
	(Allotment money received)

	Equity Share First Call A/c	Dr.		80,000
	To Equity Share Capital A/c (40,000 × 2)				80,000
	(Money due on first call)

	Bank A/c	Dr.		72,800
	To Equity Share First Call A/c (80,000 – 3,200 – 4,000)				72,800
	(Money received on first call)

	Equity Share Second and Final Call A/c	Dr.		1,20,000
	To Equity Share Capital A/c (40,000 × 3)				1,20,000
	(Money due on second call)

	Bank A/c	Dr.		1,09,200
	To Equity Share Second and Final Call A/c (1,20,000 – 4,800 – 6,000)				1,09,200
	(Money received on second call)

	Equity Share Capital A/c	Dr.		36,000
	Securities Premium Reserve A/c (1,600 × 2)	Dr.		3,200
	To Equity Share Allotment A/c				7,360
	To Equity Share First Call A/c				7,200
	To Equity Share Second Call A/c				10,800
	To Equity Share Forfeiture A/c				13,840
	( Share forfeited)

	Bank A/c (3,600 × 8)	Dr.		28,800
	Equity Share Forfeiture A/c	Dr.		7,200
	To Equity Share Capital A/c				36,000
	(Forfeited shares reissued at Rs 8 per share)

	Equity Share Forfeiture A/c	Dr.		6,640
	To Capital Reserve A/c (13,840 – 7,200)				6,640
	(Profit on reissue transferred to capital reserve)

Working Note:

WN1: Computation Table

Category	Shares Applied	Shares Allotted	App. money received @ Rs 2 each	Amount trsfd. to Share Capital Account @ Rs 2 each	Excess money	Excess money (utilised on allotment)	Money refunded
I	48,000	40,000	96,000	80,000	16,000	16,000	–
II	12,000	–	24,000	–	–	–	24,000
Total	60,000	40,000	1,20,000	80,000	16,000	16,000	24,000

WN2: Calculation of unpaid amount on allotment

$\begin{array}{l} Share Alloted to Ram = 1, 600 shares \\ Shares Applied by Ram = \frac{1, 600 \times 48, 000}{40, 000} = 1, 920 shares \\ Excess amount received on application = 320 \times 2 = Rs 640 \\ Amount due on Allotment = Rs 8, 000 (1, 600 \times 5) \\ ∴ Unpaid amount on allotment = Rs 7, 360 \end{array}$

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (22,500 × 5)	Dr.		1,12,500
	To Equity Share Application A/c				1,12,500
	(Application money received on 22,500 shares)

	Equity Share Application A/c	Dr.		1,12,500
	To Equity Share Capital A/c (20,000 × 3)				60,000
	To Bank A/c (2,500 × 5)				12,500
	To Securities Premium Reserve A/c (20,000 × 2)				40,000
	(Application money transferred to Share Capital A/c and excess money refunded)

	Equity Share Allotment A/c (20,000 × 4)	Dr.		80,000
	To Equity Share Capital A/c				80,000
	(Allotment money due)

	Bank A/c	Dr.		79,200
	To Equity Share Allotment A/c (80,000 – 800)				79,200
	(Allotment money received)

	Equity Share First and Final Call A/c (20,000 × 3)	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(First and final call money due)

	Bank A/c	Dr.		58,500
	To Equity Share First and Final Call A/c (60,000 – 1,500)				58,500
	(First call money received)

	Equity Share Capital A/c (500 × 10)	Dr.		5,000
	To Equity Share Allotment A/c (200 × 4)				800
	To Equity Share First and Final Call A/c (200 × 3 + 300 × 3)				1,500
	To Equity Share Forfeiture A/c (200 × 3 + 300 × 7 )				2,700
	(Share forfeited)

	Bank A/c (400 × 7)	Dr.		2,800
	Equity Share Forfeiture A/c (400 × 3)	Dr.		1,200
	To Equity Share Capital A/c (400 × 10)				4,000
	(400 shares reissued at discount)

	Equity Share Forfeiture A/c	Dr.		800
	To Capital Reserve A/c (200 × 3 + 200 × 7 = 2,000 – 1,200 )				800
	(Profit on reissue transferred to capital reserve)

Balance Sheet of… as at ....
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	1,99,700
b. Reserves & Surplus	2	40,800
2. Non-Current Liabilities
3. Current Liabilities
Total		2,40,500

II. Assets
1. Non-Current Assets
Fixed Assets
i. Tangible Assets
2. Current Assets
Cash and Cash Equivalents	3	2,40,050
Total		2,40,500

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	20,000 Equity Shares of Rs 10 each		2,00,000
	2. Issued Share Capital		–
	20,000 Equity Shares of Rs 10 each		2,00,000
	3. Subscribed Capital		–
	22,500 Equity shares of Rs 10 each		2,25,000
	4. Called-up and Paid-up Share Capital
	19,900 each share of Rs 10 each	1,99,000
	Add: Share Forfeited	700	1,99,700

2	Reserves & Surplus
	Securities Premium Reserve		40,000
	Capital Reserve		800
			40,800
3	Cash and Cash Equivalents
	Cash at Bank		2,40,5000

Note: Application money was received for Rs 2,25,000. It is the subscribed share capital and subscribed shares are 22,500. Accordingly, 2,500 applications were rejected and application money refunded. However, in the book it is mistakenly written as 25,000 shares.

Question 68:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c (22,500 × 5)	Dr.		1,12,500
	To Equity Share Application A/c				1,12,500
	(Application money received on 22,500 shares)

	Equity Share Application A/c	Dr.		1,12,500
	To Equity Share Capital A/c (20,000 × 3)				60,000
	To Bank A/c (2,500 × 5)				12,500
	To Securities Premium Reserve A/c (20,000 × 2)				40,000
	(Application money transferred to Share Capital A/c and excess money refunded)

	Equity Share Allotment A/c (20,000 × 4)	Dr.		80,000
	To Equity Share Capital A/c				80,000
	(Allotment money due)

	Bank A/c	Dr.		79,200
	To Equity Share Allotment A/c (80,000 – 800)				79,200
	(Allotment money received)

	Equity Share First and Final Call A/c (20,000 × 3)	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(First and final call money due)

	Bank A/c	Dr.		58,500
	To Equity Share First and Final Call A/c (60,000 – 1,500)				58,500
	(First call money received)

	Equity Share Capital A/c (500 × 10)	Dr.		5,000
	To Equity Share Allotment A/c (200 × 4)				800
	To Equity Share First and Final Call A/c (200 × 3 + 300 × 3)				1,500
	To Equity Share Forfeiture A/c (200 × 3 + 300 × 7 )				2,700
	(Share forfeited)

	Bank A/c (400 × 7)	Dr.		2,800
	Equity Share Forfeiture A/c (400 × 3)	Dr.		1,200
	To Equity Share Capital A/c (400 × 10)				4,000
	(400 shares reissued at discount)

	Equity Share Forfeiture A/c	Dr.		800
	To Capital Reserve A/c (200 × 3 + 200 × 7 = 2,000 – 1,200 )				800
	(Profit on reissue transferred to capital reserve)

Balance Sheet of… as at ....
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	1,99,700
b. Reserves & Surplus	2	40,800
2. Non-Current Liabilities
3. Current Liabilities
Total		2,40,500

II. Assets
1. Non-Current Assets
Fixed Assets
i. Tangible Assets
2. Current Assets
Cash and Cash Equivalents	3	2,40,050
Total		2,40,500

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	20,000 Equity Shares of Rs 10 each		2,00,000
	2. Issued Share Capital		–
	20,000 Equity Shares of Rs 10 each		2,00,000
	3. Subscribed Capital		–
	22,500 Equity shares of Rs 10 each		2,25,000
	4. Called-up and Paid-up Share Capital
	19,900 each share of Rs 10 each	1,99,000
	Add: Share Forfeited	700	1,99,700

2	Reserves & Surplus
	Securities Premium Reserve		40,000
	Capital Reserve		800
			40,800
3	Cash and Cash Equivalents
	Cash at Bank		2,40,5000

Note: Application money was received for Rs 2,25,000. It is the subscribed share capital and subscribed shares are 22,500. Accordingly, 2,500 applications were rejected and application money refunded. However, in the book it is mistakenly written as 25,000 shares.

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
Entry for all cases	Equity Share Capital A/c (500 × 80)	Dr.		40,000
	To Equity Share First Call A/c (500 × 30)				15,000
	To Equity Share Forfeiture A/c (500 × 50)				25,000
	(500 shares were forfeited)

Case 1	Bank A/c (200 × 90)	Dr.		18,000
	To Equity Share Capital A/c (200 × 80)				16,000
	To Securities Premium Reserve A/c				2,000
	(Out of the forfeited shares, 200 shares were reissued)

	Equity Share Forfeiture A/c (200 × 50)	Dr.		10,000
	To Capital Reserve A/c				10,000
	(Profit on reissue transferred to capital reserve account)

Case 2	Bank A/c (200 × 90)	Dr.		18,000
	To Equity Share Capital A/c (200 × 80)				16,000
	To Securities Premium Reserve A/c				2,000
	(Out of the forfeited shares, 200 shares were reissued)

	Equity Share Forfeiture A/c (200 × 50)	Dr.		10,000
	To Capital Reserve A/c				10,000
	(Profit on reissue transferred to capital reserve account)

Case 3	Bank A/c (200 × 70)	Dr.		14,000
	Equity Share Forfeiture A/c (200 × 10)	Dr.		2,000
	To Equity Share Capital A/c (200 × 80)				16,000
	(Out of the forfeited shares, 200 shares were reissued)

	Equity Share Forfeiture A/c (200 × 50 – 2,000)	Dr.		8,000
	To Capital Reserve A/c				8,000
	(Profit on reissue transferred to capital reserve account)

Case 4	Bank A/c (200 × 30)	Dr.		6,000
	Equity Share Forfeiture A/c (200 × 50)	Dr.		10,000
	To Equity Share Capital A/c				16,000
	(Out of the forfeited shares, 200 shares were reissued)

	Nothing will be transferred to capital reserve

Case 5	Bank A/c (200 × 50)	Dr.		10,000
	Equity Share Forfeiture A/c (200 × 50)	Dr.		10,000
	To Equity Share Capital A/c (200 × 100)				20,000
	(Out of the forfeited shares, 200 shares were reissued)

	Nothing will be transferred to capital reserve

Question 69:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
Entry for all cases	Equity Share Capital A/c (500 × 80)	Dr.		40,000
	To Equity Share First Call A/c (500 × 30)				15,000
	To Equity Share Forfeiture A/c (500 × 50)				25,000
	(500 shares were forfeited)

Case 1	Bank A/c (200 × 90)	Dr.		18,000
	To Equity Share Capital A/c (200 × 80)				16,000
	To Securities Premium Reserve A/c				2,000
	(Out of the forfeited shares, 200 shares were reissued)

	Equity Share Forfeiture A/c (200 × 50)	Dr.		10,000
	To Capital Reserve A/c				10,000
	(Profit on reissue transferred to capital reserve account)

Case 2	Bank A/c (200 × 90)	Dr.		18,000
	To Equity Share Capital A/c (200 × 80)				16,000
	To Securities Premium Reserve A/c				2,000
	(Out of the forfeited shares, 200 shares were reissued)

	Equity Share Forfeiture A/c (200 × 50)	Dr.		10,000
	To Capital Reserve A/c				10,000
	(Profit on reissue transferred to capital reserve account)

Case 3	Bank A/c (200 × 70)	Dr.		14,000
	Equity Share Forfeiture A/c (200 × 10)	Dr.		2,000
	To Equity Share Capital A/c (200 × 80)				16,000
	(Out of the forfeited shares, 200 shares were reissued)

	Equity Share Forfeiture A/c (200 × 50 – 2,000)	Dr.		8,000
	To Capital Reserve A/c				8,000
	(Profit on reissue transferred to capital reserve account)

Case 4	Bank A/c (200 × 30)	Dr.		6,000
	Equity Share Forfeiture A/c (200 × 50)	Dr.		10,000
	To Equity Share Capital A/c				16,000
	(Out of the forfeited shares, 200 shares were reissued)

	Nothing will be transferred to capital reserve

Case 5	Bank A/c (200 × 50)	Dr.		10,000
	Equity Share Forfeiture A/c (200 × 50)	Dr.		10,000
	To Equity Share Capital A/c (200 × 100)				20,000
	(Out of the forfeited shares, 200 shares were reissued)

	Nothing will be transferred to capital reserve

Answer:

Issued and Applied 10,000 Shares at Rs 10 each at a premium of Rs 3 per share

Application	Rs	5
Allotment	Rs	5	(2 + 3)
First and Final Call	Rs	3
	Rs	13	(10 + 3) Called-up

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	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)

Question 70:

Issued and Applied 10,000 Shares at Rs 10 each at a premium of Rs 3 per share

Application	Rs	5
Allotment	Rs	5	(2 + 3)
First and Final Call	Rs	3
	Rs	13	(10 + 3) Called-up

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	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)

Answer:

Issued and applied capital 20,000 shares at Rs 20 each at a premium of Rs 2

Payable as:

Application and Allotment	Rs	10
First Call	Rs	4	(2 + 2)
Final Call	Rs	8
		22	(20 + 2) Called-up

Books of Jiyaji Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		2,00,000
	To Share Application and Allotment A/c				2,00,000
	(Share Application and Allotment money received for 20,000 shares at Rs 10 each)

	Share Application and Allotment A/c	Dr.		2,00,000
	To Share Capital A/c				2,00,000
	(Share Application and Allotment money transferred to Share Capital)

	Share First Call A/c	Dr.		80,000
	To Share Capital A/c				40,000
	To Securities Premium A/c				40,000
	(First call due on 20,000 shares at Rs 4 per share including premium Rs 2)

	Bank A/c	Dr.		72,000
	Calls-in-Arrears A/c	Dr.		8,000
	To Equity Share First call				80,000
	(First call received on 18,000 shares and a holder of 2,000 shares failed to pay it)

	Share Final Call A/c	Dr.		1,60,000
	To Share Capital A/c				1,60,000
	(Share Final due on 20,000 shares at Rs 8 each)

	Bank A/c	Dr.		1,44,000
	Calls-in-Arrears A/c	Dr.		16,000
	To Share Final Call A/c				1,60,000
	(Final call received on 18,000 shares and a holder of 2,000 shares failed to pay it)

	Share Capital A/c	Dr.		40,000
	Securities Premium A/c	Dr.		4,000
	To Share Forfeiture A/c				20,000
	To Calls-in-Arrears A/c				24,000
	(2,000 shares of Rs 20 each forfeited for non-payment of Rs 12 per share including Rs 2 premium)

	Bank A/c	Dr.		28,000
	Share Forfeiture A/c	Dr.		12,000
	To Share Capital A/c				40,000
	(2,000 shares of Rs 20 each re-issued at Rs 14 per share fully paid-up)

	Share Forfeiture A/c	Dr.		8,000
	To Capital Reserve A/c				8,000
	(Balance of in Share Forfeiture Account after re-issue of all forfeited shares transferred to Capital Reserve)

Working Note-

Share Forfeiture	Cr.	20,000
Share Forfeiture	Dr.	12,000
Balance in Share Forfeiture (after re-issue)	Rs	8,000

Capital Reserve = Balance in Share Forfeiture (after re-issue)
= Rs 8,000

Question 71:

Issued and applied capital 20,000 shares at Rs 20 each at a premium of Rs 2

Payable as:

Application and Allotment	Rs	10
First Call	Rs	4	(2 + 2)
Final Call	Rs	8
		22	(20 + 2) Called-up

Books of Jiyaji Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		2,00,000
	To Share Application and Allotment A/c				2,00,000
	(Share Application and Allotment money received for 20,000 shares at Rs 10 each)

	Share Application and Allotment A/c	Dr.		2,00,000
	To Share Capital A/c				2,00,000
	(Share Application and Allotment money transferred to Share Capital)

	Share First Call A/c	Dr.		80,000
	To Share Capital A/c				40,000
	To Securities Premium A/c				40,000
	(First call due on 20,000 shares at Rs 4 per share including premium Rs 2)

	Bank A/c	Dr.		72,000
	Calls-in-Arrears A/c	Dr.		8,000
	To Equity Share First call				80,000
	(First call received on 18,000 shares and a holder of 2,000 shares failed to pay it)

	Share Final Call A/c	Dr.		1,60,000
	To Share Capital A/c				1,60,000
	(Share Final due on 20,000 shares at Rs 8 each)

	Bank A/c	Dr.		1,44,000
	Calls-in-Arrears A/c	Dr.		16,000
	To Share Final Call A/c				1,60,000
	(Final call received on 18,000 shares and a holder of 2,000 shares failed to pay it)

	Share Capital A/c	Dr.		40,000
	Securities Premium A/c	Dr.		4,000
	To Share Forfeiture A/c				20,000
	To Calls-in-Arrears A/c				24,000
	(2,000 shares of Rs 20 each forfeited for non-payment of Rs 12 per share including Rs 2 premium)

	Bank A/c	Dr.		28,000
	Share Forfeiture A/c	Dr.		12,000
	To Share Capital A/c				40,000
	(2,000 shares of Rs 20 each re-issued at Rs 14 per share fully paid-up)

	Share Forfeiture A/c	Dr.		8,000
	To Capital Reserve A/c				8,000
	(Balance of in Share Forfeiture Account after re-issue of all forfeited shares transferred to Capital Reserve)

Working Note-

Share Forfeiture	Cr.	20,000
Share Forfeiture	Dr.	12,000
Balance in Share Forfeiture (after re-issue)	Rs	8,000

Capital Reserve = Balance in Share Forfeiture (after re-issue)
= Rs 8,000

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2012
Feb .01	Bank A/c	Dr.		3,50,000
	To Equity Share Application A/c (70,000 × 5)				3,50,000
	(Application Money Received)

Feb. 10	Equity Share Application A/c	Dr.		3,50,000
	To Equity Share Capital A/c (50,000 × 3)				1,50,000
	To Securities Premium Reserve A/c (50,000 × 2)				1,00,000
	To Bank A/c				40,000
	To Equity Share Allotment A/c				60,000
	(Application money adjusted)

Feb.16	Equity Share Allotment A/c	Dr.		2,00,000
	To Equity Share Capital A/c (50,000 × 4)				2,00,000
	(Allotment money due)

Feb. 16	Bank A/c	Dr.		1,40,000
	To Equity Share Allotment A/c (2,00,000 – 60,000)				1,40,000
	(Allotment money received)

Mar. 01	Equity Share First Call A/c (50,000 × 3)	Dr.		1,50,000
	To Equity Share Capital A/c				1,50,000
	(First call money due)

	Bank A/c	Dr.		1,48,500
	To Equity Share First Call A/c (1,50,000 – 1,500)				1,48,500
	(First Call money Received)

Sep. 29	Equity Share Capital A/c			5,000
	To Equity Share First Call A/c				1,500
	To Equity Share Forfeiture A/c				3,500
	(Share forfeited)

Balance Sheet of X Ltd. as at March 31, 2014
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	4,98,500
b. Reserve & Surplus	2	1,00,000
2. Non-Current Liabilities
3. Current Liabilities
Total		5,98,500
II. Assets
1. Non-Current Assets
Fixed Assets
Tangible Assets
2. Current Assets
Cash and Cash Equivalents	3	5,98,500
Total		5,98,500

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	xxx shares of Rs 10 each		xxx
	2. Issued Share Capital
	50,000 Equity Shares of Rs 10 each		5,00,000
	3. Subscribed Capital
	50,000 Equity shares of Rs 10 each		5,00,000
	4. Called-up and Paid-up Share Capital
	49,500 Equity shares of Rs 10 each	4,95,000
	Add: Share Forfeited	3,500	4,98,500
			4,98,500

2	Reserve & Surplus
	Securities Premium Reserve		1,00,000

3	Cash and Cash Equivalents
	Cash at Bank		5,98,500

Question 72:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2012
Feb .01	Bank A/c	Dr.		3,50,000
	To Equity Share Application A/c (70,000 × 5)				3,50,000
	(Application Money Received)

Feb. 10	Equity Share Application A/c	Dr.		3,50,000
	To Equity Share Capital A/c (50,000 × 3)				1,50,000
	To Securities Premium Reserve A/c (50,000 × 2)				1,00,000
	To Bank A/c				40,000
	To Equity Share Allotment A/c				60,000
	(Application money adjusted)

Feb.16	Equity Share Allotment A/c	Dr.		2,00,000
	To Equity Share Capital A/c (50,000 × 4)				2,00,000
	(Allotment money due)

Feb. 16	Bank A/c	Dr.		1,40,000
	To Equity Share Allotment A/c (2,00,000 – 60,000)				1,40,000
	(Allotment money received)

Mar. 01	Equity Share First Call A/c (50,000 × 3)	Dr.		1,50,000
	To Equity Share Capital A/c				1,50,000
	(First call money due)

	Bank A/c	Dr.		1,48,500
	To Equity Share First Call A/c (1,50,000 – 1,500)				1,48,500
	(First Call money Received)

Sep. 29	Equity Share Capital A/c			5,000
	To Equity Share First Call A/c				1,500
	To Equity Share Forfeiture A/c				3,500
	(Share forfeited)

Balance Sheet of X Ltd. as at March 31, 2014
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	4,98,500
b. Reserve & Surplus	2	1,00,000
2. Non-Current Liabilities
3. Current Liabilities
Total		5,98,500
II. Assets
1. Non-Current Assets
Fixed Assets
Tangible Assets
2. Current Assets
Cash and Cash Equivalents	3	5,98,500
Total		5,98,500

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	1. Authorised Share Capital
	xxx shares of Rs 10 each		xxx
	2. Issued Share Capital
	50,000 Equity Shares of Rs 10 each		5,00,000
	3. Subscribed Capital
	50,000 Equity shares of Rs 10 each		5,00,000
	4. Called-up and Paid-up Share Capital
	49,500 Equity shares of Rs 10 each	4,95,000
	Add: Share Forfeited	3,500	4,98,500
			4,98,500

2	Reserve & Surplus
	Securities Premium Reserve		1,00,000

3	Cash and Cash Equivalents
	Cash at Bank		5,98,500

Answer:

(i)	Books of X Limited Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Share Capital A/c	Dr.		1,000
		To Share Forfeiture A/c (100 × Rs 2)				200
		To Calls-in-Arrears A/c				800
		(100 shares of Rs 10 each which had issued at par, forfeited for non- payment of Rs 8)

		Bank A/c	Dr.		480
		Share Forfeiture A/c (80 × Rs 2)	Dr.		160
		To Share Capital A/c (80 × Rs 8)				640
		(80 shares of Rs 10 each, re-issued for Rs 6 each as Rs 8 paid-up)

Working Note-

Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	Rs 2	per share
Share Forfeiture (Loss)	Dr.	Rs 2	per share
Balance in share forfeiture after re-issue		NIL

(ii)	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

Question 73:

(i)	Books of X Limited Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Share Capital A/c	Dr.		1,000
		To Share Forfeiture A/c (100 × Rs 2)				200
		To Calls-in-Arrears A/c				800
		(100 shares of Rs 10 each which had issued at par, forfeited for non- payment of Rs 8)

		Bank A/c	Dr.		480
		Share Forfeiture A/c (80 × Rs 2)	Dr.		160
		To Share Capital A/c (80 × Rs 8)				640
		(80 shares of Rs 10 each, re-issued for Rs 6 each as Rs 8 paid-up)

Working Note-

Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	Rs 2	per share
Share Forfeiture (Loss)	Dr.	Rs 2	per share
Balance in share forfeiture after re-issue		NIL

(ii)	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

Answer:

(a)	Books of XYZ Limited Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Equity Share Capital A/c (200 × Rs 10)	Dr.		2,000
		Securities Premium A/c (200 × Rs 5)	Dr.		1,000
		To Share Forfeiture A/c (200 × Rs2)				400
		To Calls-In-Arrears A/c				2,600
		(200 shares of Rs 10 each forfeited for non- payment Rs 8 including premium Rs 5)

		Bank A/c	Dr.		1,125
		Share Forfeiture A/c	Dr.		125
		To Equity Share Capital A/c				1,250
		(125 shares of Rs 10 each re-issued at Rs 9 per share fully paid-up)

		Share Forfeiture A/c	Dr.		125
		To Capital Reserve A/c				125
		(Balance in Share Forfeiture of re-issued 125 shares transferred to Capital Reserve)

Working Notes:

Share Forfeiture of re-issued shares
Share Forfeiture Cr.	Rs 2	per share
Share Forfeiture Dr.	Re 1	per share
Balance after re-issue	Re 1	per share

Capital Reserve = Balance in share forfeiture after re-issue (per share) × No. of share re-issued

= Re 1 × 125 shares

= Rs 125

(b)	Books of VT Limited Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Share Capital A/c	Dr.		140
		To Share Forfeiture A/c				40
		To Calls-in-Arrears A/c				100
		(20 shares of Rs 10 each, on which Rs 7 had called-up, forfeited for the non-payment of Rs 5)

		Bank A/c	Dr.		108
		Share Forfeiture A/c	Dr.		18
		To Share Capital A/c				126
		(18 shares of Rs 10 each re-issued at Rs 6 per share, as Rs 7 called-up)

		Share Forfeiture A/c $(\frac{40}{20} \times 18) - 18$	Dr.		18
		To Capital Reserve A/c				18
		(Balance in Share Forfeiture of re-issued 18 shares transferred to Capital Reserve)

Working Notes:

Share Forfeiture of re-issued shares
Share Forfeiture (Cr.)	Rs 2	per share
Share Forfeiture (Dr.)	Rs 2	per share
	NIL

Question 74:

(a)	Books of XYZ Limited Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Equity Share Capital A/c (200 × Rs 10)	Dr.		2,000
		Securities Premium A/c (200 × Rs 5)	Dr.		1,000
		To Share Forfeiture A/c (200 × Rs2)				400
		To Calls-In-Arrears A/c				2,600
		(200 shares of Rs 10 each forfeited for non- payment Rs 8 including premium Rs 5)

		Bank A/c	Dr.		1,125
		Share Forfeiture A/c	Dr.		125
		To Equity Share Capital A/c				1,250
		(125 shares of Rs 10 each re-issued at Rs 9 per share fully paid-up)

		Share Forfeiture A/c	Dr.		125
		To Capital Reserve A/c				125
		(Balance in Share Forfeiture of re-issued 125 shares transferred to Capital Reserve)

Working Notes:

Share Forfeiture of re-issued shares
Share Forfeiture Cr.	Rs 2	per share
Share Forfeiture Dr.	Re 1	per share
Balance after re-issue	Re 1	per share

Capital Reserve = Balance in share forfeiture after re-issue (per share) × No. of share re-issued

= Re 1 × 125 shares

= Rs 125

(b)	Books of VT Limited Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Share Capital A/c	Dr.		140
		To Share Forfeiture A/c				40
		To Calls-in-Arrears A/c				100
		(20 shares of Rs 10 each, on which Rs 7 had called-up, forfeited for the non-payment of Rs 5)

		Bank A/c	Dr.		108
		Share Forfeiture A/c	Dr.		18
		To Share Capital A/c				126
		(18 shares of Rs 10 each re-issued at Rs 6 per share, as Rs 7 called-up)

		Share Forfeiture A/c $(\frac{40}{20} \times 18) - 18$	Dr.		18
		To Capital Reserve A/c				18
		(Balance in Share Forfeiture of re-issued 18 shares transferred to Capital Reserve)

Working Notes:

Share Forfeiture of re-issued shares
Share Forfeiture (Cr.)	Rs 2	per share
Share Forfeiture (Dr.)	Rs 2	per share
	NIL

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		6,000
	To Equity Share Application A/c (3,000 × 2)				6,000
	(Application money received)

	Equity Share Application A/c	Dr.		6,000
	To Equity Share Capital A/c (2,000 × 2)				4,000
	To Equity Share Allotment A/c (400 × 2)				800
	To Bank A/c (600 × 2)				1,200
	(Application money adjusted to share capital carried to allotment and also refunded)

	Equity Share Allotment A/c (2,000 × 5)	Dr.		10,000
	To Equity Share Capital A/c (2,000 × 3)				6,000
	To Securities Premium Reserve A/c (2,000 × 2)				4,000
	(Allotment money due along with premium)

	Bank A/c	Dr.		8,832
	To Equity Share Allotment A/c (10,000 – 800 – 368)				8,832
	(Allotment money received)

	Equity Share First Call A/c (2,000 × 3)	Dr.		6,000
	To Equity Share Capital A/c				6,000
	(First call money due)

	Bank A/c	Dr.		5,760
	To Equity Share First Call A/c (6,000 – 240)				5,760
	(Call money received)

	Equity Share Capital A/c (80 × 8)	Dr.		640
	Securities Premium Reserve A/c (80 × 2)	Dr.		160
	To Equity Share Allotment A/c				368
	To Equity Share First Call A/c				240
	To Equity Share Forfeiture A/c				192
	(Shares forfeited)

Working Notes:

Calculation of amount unpaid on allotment

Question 75:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		6,000
	To Equity Share Application A/c (3,000 × 2)				6,000
	(Application money received)

	Equity Share Application A/c	Dr.		6,000
	To Equity Share Capital A/c (2,000 × 2)				4,000
	To Equity Share Allotment A/c (400 × 2)				800
	To Bank A/c (600 × 2)				1,200
	(Application money adjusted to share capital carried to allotment and also refunded)

	Equity Share Allotment A/c (2,000 × 5)	Dr.		10,000
	To Equity Share Capital A/c (2,000 × 3)				6,000
	To Securities Premium Reserve A/c (2,000 × 2)				4,000
	(Allotment money due along with premium)

	Bank A/c	Dr.		8,832
	To Equity Share Allotment A/c (10,000 – 800 – 368)				8,832
	(Allotment money received)

	Equity Share First Call A/c (2,000 × 3)	Dr.		6,000
	To Equity Share Capital A/c				6,000
	(First call money due)

	Bank A/c	Dr.		5,760
	To Equity Share First Call A/c (6,000 – 240)				5,760
	(Call money received)

	Equity Share Capital A/c (80 × 8)	Dr.		640
	Securities Premium Reserve A/c (80 × 2)	Dr.		160
	To Equity Share Allotment A/c				368
	To Equity Share First Call A/c				240
	To Equity Share Forfeiture A/c				192
	(Shares forfeited)

Working Notes:

Calculation of amount unpaid on allotment

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		4,10,000
	To Equity Share Application A/c (20,500 × 20)				4,10,000
	(Application money received)

	Equity Share Application A/c	Dr.		4,10,000
	To Equity Share Capital A/c (10,000 × 20)				2,00,000
	To Equity Share Allotment A/c (10,000 × 20)				2,00,000
	To Bank A/c (500 × 20)				10,000
	(Application money adjusted to share capital carried to allotment and also refunded)

	Equity Share Allotment A/c (10,000 × 40)	Dr.		4,00,000
	To Equity Share Capital A/c (10,000 × 30)				3,00,000
	To Securities Premium Reserve A/c (10,000 × 10)				1,00,000
	(Allotment money due along with premium)

	Bank A/c	Dr.		2,00,000
	To Equity Share Allotment A/c (4,00,000 – 2,00,000)				2,00,000

	Equity Share First and Final Call A/c (10,000 × 50)	Dr.		5,00,000
	To Equity Share Capital A/c				5,00,000
	(First call money due)

	Bank A/c	Dr.		4,97,500
	To Equity Share First and Final Call A/c (5,00,000 – 2,500)				4,97,500
	(Call money received)

	Equity Share Capital A/c (50 × 100)	Dr.		5,000
	To Equity Share First Call A/c (50 × 50)				2,500
	To Equity Share Forfeiture A/c (50 × 50)				2,500
	(Shares forfeited)

	Bank A/c (50 × 90)	Dr.		4,500
	Equity Share Forfeiture A/c (50 × 10)	Dr.		500
	To Equity Share Capital A/c (50 × 100)				5,000
	(Reissue of shares)

	Equity Share Forfeiture A/c	Dr.		2,000
	To Capital Reserve A/c				2,000
	(Profit on reissue transferred to Capital Reserve)

Working Notes:

Question 76:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		4,10,000
	To Equity Share Application A/c (20,500 × 20)				4,10,000
	(Application money received)

	Equity Share Application A/c	Dr.		4,10,000
	To Equity Share Capital A/c (10,000 × 20)				2,00,000
	To Equity Share Allotment A/c (10,000 × 20)				2,00,000
	To Bank A/c (500 × 20)				10,000
	(Application money adjusted to share capital carried to allotment and also refunded)

	Equity Share Allotment A/c (10,000 × 40)	Dr.		4,00,000
	To Equity Share Capital A/c (10,000 × 30)				3,00,000
	To Securities Premium Reserve A/c (10,000 × 10)				1,00,000
	(Allotment money due along with premium)

	Bank A/c	Dr.		2,00,000
	To Equity Share Allotment A/c (4,00,000 – 2,00,000)				2,00,000

	Equity Share First and Final Call A/c (10,000 × 50)	Dr.		5,00,000
	To Equity Share Capital A/c				5,00,000
	(First call money due)

	Bank A/c	Dr.		4,97,500
	To Equity Share First and Final Call A/c (5,00,000 – 2,500)				4,97,500
	(Call money received)

	Equity Share Capital A/c (50 × 100)	Dr.		5,000
	To Equity Share First Call A/c (50 × 50)				2,500
	To Equity Share Forfeiture A/c (50 × 50)				2,500
	(Shares forfeited)

	Bank A/c (50 × 90)	Dr.		4,500
	Equity Share Forfeiture A/c (50 × 10)	Dr.		500
	To Equity Share Capital A/c (50 × 100)				5,000
	(Reissue of shares)

	Equity Share Forfeiture A/c	Dr.		2,000
	To Capital Reserve A/c				2,000
	(Profit on reissue transferred to Capital Reserve)

Working Notes:

Answer:

Issued 1,00,000 Shares

Applied 2,00,000 Shares

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 200	per share
50,000	NIL	Allotment	Rs 300	(200 + 100) per share
1,50,000	1,00,000	Share First and Final Call	Rs 100	per share
2,00,000	1,00,000		Rs 600	(500+100) per share

Books of Veer Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		4,00,00,000
	To Equity Share Application A/c				4,00,00,000
	(Application money received for 2,00,000 shares at Rs 200 each)

	Equity Share Application A/c	Dr.		4,00,00,000
	To Equity Share Capital A/c				2,00,00,000
	To Equity Shares Allotment A/c				1,00,00,000
	To Bank A/c				1,00,00,000
	(Application money of 1,00,000 shares transferred to Shares Capital, 50,000 shares money refunded and remaining money adjusted on allotment)

	Equity Share Allotment A/c	Dr.		3,00,00,000
	To Equity Share Capital A/c				2,00,00,000
	To Securities Premium A/c				1,00,00,000
	(Allotment due on 1,00,000 shares at Rs 300 each including Rs 100 premium)

	Bank A/c	Dr.		2,00,00,000
	To Equity Share Allotment A/c				2,00,00,000
	(Share allotment received)

	Equity Share First and Final Call A/c	Dr.		1,00,00,000
	To Equity Share Capital A/c				1,00,00,000
	(First and Final call due on 1,00,000 shares at Rs 100 each)

	Bank A/c	Dr.		99,90,000
	Calls-in-Arrears A/c	Dr.		10,000
	To Equity Share First and Final Call A/c				1,00,00,000
	(First and final call received on 99,900 shares at Rs 100 each)

	Equity Share Capital A/c	Dr.		50,000
	To Share Forfeiture A/c				40,000
	To Calls-in-Arrears A/c				10,000
	(100 shares of Rs 500 each forfeited)

	Bank A/c	Dr.		60,000
	To Equity Share Capital A/c				50,000
	To Securities Premium A/c				10,000
	(100 shares of Rs 500 each re-issued for the sum of Rs 60,000)

	Share Forfeiture A/c	Dr.		40,000
	To Capital Reserve A/c				40,000
	(Share Forfeiture 100 shares transferred to Capital Reserve)

Working Notes-

Share Forfeiture of re-issued shares
Share Forfeiture Cr.	Rs 40,000
Share Forfeiture Dr.	NIL
Balance in Share Forfeiture after re-issue	Rs 40,000

Capital Reserve = Balance in Share Forfeiture after re-issue = Rs 40,000

Question 77:

Issued 1,00,000 Shares

Applied 2,00,000 Shares

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 200	per share
50,000	NIL	Allotment	Rs 300	(200 + 100) per share
1,50,000	1,00,000	Share First and Final Call	Rs 100	per share
2,00,000	1,00,000		Rs 600	(500+100) per share

Books of Veer Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		4,00,00,000
	To Equity Share Application A/c				4,00,00,000
	(Application money received for 2,00,000 shares at Rs 200 each)

	Equity Share Application A/c	Dr.		4,00,00,000
	To Equity Share Capital A/c				2,00,00,000
	To Equity Shares Allotment A/c				1,00,00,000
	To Bank A/c				1,00,00,000
	(Application money of 1,00,000 shares transferred to Shares Capital, 50,000 shares money refunded and remaining money adjusted on allotment)

	Equity Share Allotment A/c	Dr.		3,00,00,000
	To Equity Share Capital A/c				2,00,00,000
	To Securities Premium A/c				1,00,00,000
	(Allotment due on 1,00,000 shares at Rs 300 each including Rs 100 premium)

	Bank A/c	Dr.		2,00,00,000
	To Equity Share Allotment A/c				2,00,00,000
	(Share allotment received)

	Equity Share First and Final Call A/c	Dr.		1,00,00,000
	To Equity Share Capital A/c				1,00,00,000
	(First and Final call due on 1,00,000 shares at Rs 100 each)

	Bank A/c	Dr.		99,90,000
	Calls-in-Arrears A/c	Dr.		10,000
	To Equity Share First and Final Call A/c				1,00,00,000
	(First and final call received on 99,900 shares at Rs 100 each)

	Equity Share Capital A/c	Dr.		50,000
	To Share Forfeiture A/c				40,000
	To Calls-in-Arrears A/c				10,000
	(100 shares of Rs 500 each forfeited)

	Bank A/c	Dr.		60,000
	To Equity Share Capital A/c				50,000
	To Securities Premium A/c				10,000
	(100 shares of Rs 500 each re-issued for the sum of Rs 60,000)

	Share Forfeiture A/c	Dr.		40,000
	To Capital Reserve A/c				40,000
	(Share Forfeiture 100 shares transferred to Capital Reserve)

Working Notes-

Share Forfeiture of re-issued shares
Share Forfeiture Cr.	Rs 40,000
Share Forfeiture Dr.	NIL
Balance in Share Forfeiture after re-issue	Rs 40,000

Capital Reserve = Balance in Share Forfeiture after re-issue = Rs 40,000

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2012
Jan. 31	Bank A/c	Dr.		6,25,000
	To Equity Share Application A/c (2,50,000 × 2.5)				6,25,000
	(Application money received)

Jan. 31	Equity Share Application A/c	Dr.		6,25,000
	To Equity Share Capital A/c (2,00,000 × 2.5)				5,00,000
	To Equity Share Allotment A/c				1,00,000
	To Bank A/c (10,000 × 2.5)				25,000
	(Application money adjusted to share capital carried to allotment and also refunded)

Feb. 29	Equity Share Allotment A/c (2,00,000 × 5)	Dr.		10,00,000
	To Equity Share Capital A/c (2,00,000 × 2.5)				5,00,000
	To Securities Premium Reserve A/c (2,00,000 × 2.5)				5,00,000
	(Allotment money due along with premium)

Feb. 29	Bank A/c	Dr.		9,00,000
	To Equity Share Allotment A/c (10,00,000 – 1,00,000)				9,00,000

June 30	Equity Share First call A/c (2,00,000 × 5)	Dr.		10,00,000
	To Equity Share Capital A/c				10,00,000
	(First call money due)

June 30	Bank A/c	Dr.		9,99,000
	To Equity Share First Call A/c (10,00,000 – 1000)				9,99,000
	(Call money received)

	Equity Share Capital A/c	Dr.		2,000
	To Equity Share First Call A/c				1,000
	To Equity Share Forfeiture A/c				1,000
	(Shares forfeited)

Oct. 31	Bank A/c	Dr.		1,800
	Equity Share Forfeiture A/c	Dr.		200
	To Equity Share Capital A/c				2,000
	(Reissue of shares)

Oct. 31	Equity Share Forfeiture A/c	Dr.		800
	To Capital Reserve A/c				800
	( Profit on reissue tfd to Capital Reserve)

Balance Sheet of Gopal Ltd as at ....
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	20,00,000
b. Reserve & Surplus	2	5,00,800
2. Non-Current Liabilities
3. Current Liabilities
Total		25,00,800
II. Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets
2. Current Assets
a. Cash and Cash Equivalents	3	25,00,800
Total		25,00,800

*NOTES TO ACCOUNTS*
Note No.	Particulars	Amount (Rs)
1	Share Capital
	1. Authorised Share Capital	–
	xxx shares of Rs 10 each	xxx
	2. Issued Share Capital
	2,00,000 Equity Shares of Rs 10 each	20,00,000
	3. Subscribed Capital
	2,50,000 Equity shares of Rs 10 each	25,00,000
	4. Called-up and Paid- up Share Capital
	2,00,000 Equity shares of Rs 10 each	20,00,000
		20,00,000
2	Reserve & Surplus
	Securities Premium Reserve	5,00,000
	Capital Reserve	800
		5,00,800
3	Cash and Cash Equivalents
	Cash at Bank	25,00,800

Working Notes:

No. of Application and No. of share alloted pro-rata are found as under:

	No. of Shares Applied	No. of Shares Allotted
	10,000	–
	40,000	40,000
	2,00,000	1,60,000
Total	2,50,000	2,00,000

Question 78:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2012
Jan. 31	Bank A/c	Dr.		6,25,000
	To Equity Share Application A/c (2,50,000 × 2.5)				6,25,000
	(Application money received)

Jan. 31	Equity Share Application A/c	Dr.		6,25,000
	To Equity Share Capital A/c (2,00,000 × 2.5)				5,00,000
	To Equity Share Allotment A/c				1,00,000
	To Bank A/c (10,000 × 2.5)				25,000
	(Application money adjusted to share capital carried to allotment and also refunded)

Feb. 29	Equity Share Allotment A/c (2,00,000 × 5)	Dr.		10,00,000
	To Equity Share Capital A/c (2,00,000 × 2.5)				5,00,000
	To Securities Premium Reserve A/c (2,00,000 × 2.5)				5,00,000
	(Allotment money due along with premium)

Feb. 29	Bank A/c	Dr.		9,00,000
	To Equity Share Allotment A/c (10,00,000 – 1,00,000)				9,00,000

June 30	Equity Share First call A/c (2,00,000 × 5)	Dr.		10,00,000
	To Equity Share Capital A/c				10,00,000
	(First call money due)

June 30	Bank A/c	Dr.		9,99,000
	To Equity Share First Call A/c (10,00,000 – 1000)				9,99,000
	(Call money received)

	Equity Share Capital A/c	Dr.		2,000
	To Equity Share First Call A/c				1,000
	To Equity Share Forfeiture A/c				1,000
	(Shares forfeited)

Oct. 31	Bank A/c	Dr.		1,800
	Equity Share Forfeiture A/c	Dr.		200
	To Equity Share Capital A/c				2,000
	(Reissue of shares)

Oct. 31	Equity Share Forfeiture A/c	Dr.		800
	To Capital Reserve A/c				800
	( Profit on reissue tfd to Capital Reserve)

Balance Sheet of Gopal Ltd as at ....
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	20,00,000
b. Reserve & Surplus	2	5,00,800
2. Non-Current Liabilities
3. Current Liabilities
Total		25,00,800
II. Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets
2. Current Assets
a. Cash and Cash Equivalents	3	25,00,800
Total		25,00,800

*NOTES TO ACCOUNTS*
Note No.	Particulars	Amount (Rs)
1	Share Capital
	1. Authorised Share Capital	–
	xxx shares of Rs 10 each	xxx
	2. Issued Share Capital
	2,00,000 Equity Shares of Rs 10 each	20,00,000
	3. Subscribed Capital
	2,50,000 Equity shares of Rs 10 each	25,00,000
	4. Called-up and Paid- up Share Capital
	2,00,000 Equity shares of Rs 10 each	20,00,000
		20,00,000
2	Reserve & Surplus
	Securities Premium Reserve	5,00,000
	Capital Reserve	800
		5,00,800
3	Cash and Cash Equivalents
	Cash at Bank	25,00,800

Working Notes:

No. of Application and No. of share alloted pro-rata are found as under:

	No. of Shares Applied	No. of Shares Allotted
	10,000	–
	40,000	40,000
	2,00,000	1,60,000
Total	2,50,000	2,00,000

Answer:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		60,000
	To Equity Share Application A/c (30,000 × 2)				60,000
	(Application money received on 30,000 shares)

	Equity Share Application A/c	Dr.		60,000
	To Equity Share Capital A/c (20,000 × 2)				40,000
	To Equity Share Allotment A/c (4,000 × 2)				8,000
	To Bank A/c (6,000 × 2)				12,000
	(Application money transferred to share capital, adjusted in allotment and refunded)

	Equity Share Allotment A/c (20,000 × 5)	Dr.		1,00,000
	To Equity Share Capital A/c (20,000 × 3)				60,000
	To Securities Premium Reserve A/c (20,000 × 2)				40,000
	(Allotment money due along with premium)

	Bank A/c	Dr.		90,160
	To Equity Share Allotment A/c (1,00,000 – 8,000 – 1,840)				90,160
	(Allotment money received)

	Equity Share First Call A/c (20,000 × 3)	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(Amount due on first call)

	Bank A/c	Dr.		57,000
	To Equity Share First Call A/c (60,000 – 1,200 – 1,800)				57,000
	(Amount received on first call)

	Equity Share Capital A/c (400 × 8)	Dr.		3,200
	Securities Premium Reserve A/c (400 × 2)	Dr.		800
	To Equity Share Allotment A/c				1,840
	To Equity Share First Call A/c				1,200
	To Share Forfeiture A/c				960
	(Ramesh’s shares forfeited due to non-payment of allotment and first call money)

	Equity Share Second Call A/c (19,600 × 2)	Dr.		39,200
	To Equity Share Capital A/c				39,200
	(Second call money due on 19,600 shares)

	Bank A/c	Dr.		38,000
	To Equity Share Second Call A/c (39,200 – 1,200)				38,000
	(Amount received on second call except on 600 shares)

	Equity Share Capital A/c (600 × 10)	Dr.		6,000
	To Equity Share First Call A/c (600 × 3)				1,800
	To Equity Share Second Call A/c (600 × 2)				1,200
	To Share Forfeiture A/c (600 × 5)				3,000
	(Mohan’s shares were forfeited due to non- payment of first and second call)

	Bank A/c (800 × 9)	Dr.		7,200
	Share Forfeiture A/c (800 × 1)	Dr.		800
	To Equity Share capital A/c				8,000
	(Out of the forfeited shares, 800 shares were reissued)

	Share Forfeiture A/c	Dr.		2,160
	To Capital Reserve A/c				2,160
	( Profit on reissue transferred to Capital Reserve)

Balance Sheet of H Ltd. as at …
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
Share Capital	1	1,99,000
Reserves and Surplus	2	41,360
Total		2,40,360
II. Assets
Current Assets
Cash and Cash Equivalents	3	2,40,360
Total		2,40,360

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, Called-up and Paid-up Capital
19,800 shares of Rs 10 each	1,98,000
Add: Share Forfeiture	1,000	1,99,000

2. Reserves and Surplus
Securities Premium Reserve	39,200
Capital Reserve	2,160	41,360

3. Cash and Cash Equivalents
Cash at Bank		2,40,360

Working Notes:

WN1: Computation Table

Category	Shares Applied	Shares Allotted	App. money received @ Rs 2 each	Amount trsfd. to Share Capital Account @ Rs 2 each	Excess money	Excess money (utilised on allotment)	Money refunded
I	24,000	20,000	48,000	40,000	8,000	8,000
II	6,000		12,000				12,000
Total	30,000	20,000	60,000	40,000	8,000	8,000	12,000

WN2: Calculation of amount unpaid on allotment by Ramesh

$\begin{array}{l} Shares allotted to Ramesh = 400 shares \\ Shares applied by Ramesh = 400 \times \frac{24, 000}{20, 000} = 480 shares \\ Excess amount received on application = Rs 160 \\ ∴ Unpaid amount on allotment = 2, 000 - 160 = Rs 1, 840 \end{array}$

WN3: Calculation of amount transferred to capital reserve

Question 79:

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		60,000
	To Equity Share Application A/c (30,000 × 2)				60,000
	(Application money received on 30,000 shares)

	Equity Share Application A/c	Dr.		60,000
	To Equity Share Capital A/c (20,000 × 2)				40,000
	To Equity Share Allotment A/c (4,000 × 2)				8,000
	To Bank A/c (6,000 × 2)				12,000
	(Application money transferred to share capital, adjusted in allotment and refunded)

	Equity Share Allotment A/c (20,000 × 5)	Dr.		1,00,000
	To Equity Share Capital A/c (20,000 × 3)				60,000
	To Securities Premium Reserve A/c (20,000 × 2)				40,000
	(Allotment money due along with premium)

	Bank A/c	Dr.		90,160
	To Equity Share Allotment A/c (1,00,000 – 8,000 – 1,840)				90,160
	(Allotment money received)

	Equity Share First Call A/c (20,000 × 3)	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(Amount due on first call)

	Bank A/c	Dr.		57,000
	To Equity Share First Call A/c (60,000 – 1,200 – 1,800)				57,000
	(Amount received on first call)

	Equity Share Capital A/c (400 × 8)	Dr.		3,200
	Securities Premium Reserve A/c (400 × 2)	Dr.		800
	To Equity Share Allotment A/c				1,840
	To Equity Share First Call A/c				1,200
	To Share Forfeiture A/c				960
	(Ramesh’s shares forfeited due to non-payment of allotment and first call money)

	Equity Share Second Call A/c (19,600 × 2)	Dr.		39,200
	To Equity Share Capital A/c				39,200
	(Second call money due on 19,600 shares)

	Bank A/c	Dr.		38,000
	To Equity Share Second Call A/c (39,200 – 1,200)				38,000
	(Amount received on second call except on 600 shares)

	Equity Share Capital A/c (600 × 10)	Dr.		6,000
	To Equity Share First Call A/c (600 × 3)				1,800
	To Equity Share Second Call A/c (600 × 2)				1,200
	To Share Forfeiture A/c (600 × 5)				3,000
	(Mohan’s shares were forfeited due to non- payment of first and second call)

	Bank A/c (800 × 9)	Dr.		7,200
	Share Forfeiture A/c (800 × 1)	Dr.		800
	To Equity Share capital A/c				8,000
	(Out of the forfeited shares, 800 shares were reissued)

	Share Forfeiture A/c	Dr.		2,160
	To Capital Reserve A/c				2,160
	( Profit on reissue transferred to Capital Reserve)

Balance Sheet of H Ltd. as at …
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
Share Capital	1	1,99,000
Reserves and Surplus	2	41,360
Total		2,40,360
II. Assets
Current Assets
Cash and Cash Equivalents	3	2,40,360
Total		2,40,360

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, Called-up and Paid-up Capital
19,800 shares of Rs 10 each	1,98,000
Add: Share Forfeiture	1,000	1,99,000

2. Reserves and Surplus
Securities Premium Reserve	39,200
Capital Reserve	2,160	41,360

3. Cash and Cash Equivalents
Cash at Bank		2,40,360

Working Notes:

WN1: Computation Table

Category	Shares Applied	Shares Allotted	App. money received @ Rs 2 each	Amount trsfd. to Share Capital Account @ Rs 2 each	Excess money	Excess money (utilised on allotment)	Money refunded
I	24,000	20,000	48,000	40,000	8,000	8,000
II	6,000		12,000				12,000
Total	30,000	20,000	60,000	40,000	8,000	8,000	12,000

WN2: Calculation of amount unpaid on allotment by Ramesh

$\begin{array}{l} Shares allotted to Ramesh = 400 shares \\ Shares applied by Ramesh = 400 \times \frac{24, 000}{20, 000} = 480 shares \\ Excess amount received on application = Rs 160 \\ ∴ Unpaid amount on allotment = 2, 000 - 160 = Rs 1, 840 \end{array}$

WN3: Calculation of amount transferred to capital reserve

Answer:

Cash Book
Dr.					Cr.
Date	Particulars	L.F.	Amount (Rs)	Date		Particulars	L.F.	Amount (Rs)
	Equity Share Application A/c (65,000 × 3)		1,95,000			Equity Share Application A/c (5,000 × 3)		15,000
	Equity Share Allotment A/c (2,00,000 – 30,000)		1,70,000			Balance c/d		5,93,500
	Equity Share First Call A/c (1,00,000 – 2,000)		98,000
	Equity Share Second and Final Call A/c (1,50,000 – 4,500)		1,45,500
			6,08,500					6,08,500

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Application A/c	Dr.		1,80,000
	To Equity Share Capital A/c (50,000 × 3)				1,50,000
	To Equity Share Allotment A/c (WN)				30,000
	(Application money transferred to share capital and adjusted in allotment)

	Equity Share Allotment 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
	(Allotment money due on 50,000 shares)

	Equity Share First Call A/c (50,000 × 2)	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(First call money due on 50,000 shares)

	Equity Share Second and Final Call A/c (50,000 × 3)	Dr.		1,50,000
	To Equity Share Capital A/c				1,50,000
	(Second and final call money due)

Balance Sheet of Gopal Ltd. as at …
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
Share Capital	1	4,93,500
Reserves and Surplus	2	1,00,000
Total		5,93,500
II. Assets
Current Assetsvipin
Cash and Cash Equivalents	3	5,93,500
Total		5,93,500

Notes to Accounts
Particulars		Amount (Rs)
Share Capital
Authorised Share Capital
xxx Equity Shares of Rs 10 each		xxx
Issued Share Capital
50,000 Equity Shares of Rs 10 each		5,00,000
Subscribed Share Capital
Subscribed but not fully paid-up
50,000 shares of Rs 10 each	5,00,000
Less: Calls-in- Arrears	6,500	4,93,500

Reserves and Surplus
Securities Premium Reserve		1,00,000

Cash and Cash Equivalents
Cash at Bank		5,93,500

Working Notes: Computation Table

Category	Shares Applied	Shares Allotted	App. money received @ Rs 3 each	Amount trsfd. to Share Capital Account @ Rs 3 each	Excess money	Excess money (utilised on allotment)	Money refunded
I	40,000	40,000	1,20,000	1,20,000	–	–	–
II	20,000	10,000	60,000	30,000	30,000	30,000	–
III	5,000	–	15,000	–	–	–	15,000
Total	65,000	50,000	1,95,000	1,50,000	30,000	30,000	15,000

Question 80:

Cash Book
Dr.					Cr.
Date	Particulars	L.F.	Amount (Rs)	Date		Particulars	L.F.	Amount (Rs)
	Equity Share Application A/c (65,000 × 3)		1,95,000			Equity Share Application A/c (5,000 × 3)		15,000
	Equity Share Allotment A/c (2,00,000 – 30,000)		1,70,000			Balance c/d		5,93,500
	Equity Share First Call A/c (1,00,000 – 2,000)		98,000
	Equity Share Second and Final Call A/c (1,50,000 – 4,500)		1,45,500
			6,08,500					6,08,500

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Equity Share Application A/c	Dr.		1,80,000
	To Equity Share Capital A/c (50,000 × 3)				1,50,000
	To Equity Share Allotment A/c (WN)				30,000
	(Application money transferred to share capital and adjusted in allotment)

	Equity Share Allotment 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
	(Allotment money due on 50,000 shares)

	Equity Share First Call A/c (50,000 × 2)	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(First call money due on 50,000 shares)

	Equity Share Second and Final Call A/c (50,000 × 3)	Dr.		1,50,000
	To Equity Share Capital A/c				1,50,000
	(Second and final call money due)

Balance Sheet of Gopal Ltd. as at …
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
Share Capital	1	4,93,500
Reserves and Surplus	2	1,00,000
Total		5,93,500
II. Assets
Current Assetsvipin
Cash and Cash Equivalents	3	5,93,500
Total		5,93,500

Notes to Accounts
Particulars		Amount (Rs)
Share Capital
Authorised Share Capital
xxx Equity Shares of Rs 10 each		xxx
Issued Share Capital
50,000 Equity Shares of Rs 10 each		5,00,000
Subscribed Share Capital
Subscribed but not fully paid-up
50,000 shares of Rs 10 each	5,00,000
Less: Calls-in- Arrears	6,500	4,93,500

Reserves and Surplus
Securities Premium Reserve		1,00,000

Cash and Cash Equivalents
Cash at Bank		5,93,500

Working Notes: Computation Table

Category	Shares Applied	Shares Allotted	App. money received @ Rs 3 each	Amount trsfd. to Share Capital Account @ Rs 3 each	Excess money	Excess money (utilised on allotment)	Money refunded
I	40,000	40,000	1,20,000	1,20,000	–	–	–
II	20,000	10,000	60,000	30,000	30,000	30,000	–
III	5,000	–	15,000	–	–	–	15,000
Total	65,000	50,000	1,95,000	1,50,000	30,000	30,000	15,000

Answer:

In the books of Pee Kay Ltd. Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		15,00,000
	To Share Application A/c				15,00,000
	(Application money received on 5,00,000 shares)

	Equity Share Application A/c	Dr.		15,00,000
	To Equity Share Capital A/c				6,00,000
	To Equity Share Allotment A/c				6,00,000
	To Equity Share First Call A/c				3,00,000
	(Application money transferred to Share Capital Account and adjusted towards allotment and first call)

	Equity Share Allotment A/c	Dr.		6,00,000
	To Equity Share Capital A/c				6,00,000
	(Amount due on allotment @ Rs 3 each)

	Bank A/c	Dr.		Nil
	To Equity Share Allotment A/c				Nil
	(Already adjusted through excess application money)

	Equity Share First Call A/c	Dr.		6,00,000
	To Equity Share Capital A/c				4,00,000
	To Securities Premium A/c				2,00,000
	(Amount due on first and final call on 2,00,000 shares)

	Bank A/c (6,00,000 – 3,00,000 – 300)	Dr.		2,99,700
	To Equity Share First Call A/c				2,99,700
	(Amount received on first and final call)

	Equity Share Second & Final Call A/c	Dr.		6,00,000
	To Equity Share Capital A/c				4,00,000
	To Securities Premium A/c				2,00,000
	(Amount due on second call on 2,00,000 shares)

	Bank A/c (6,00,000 – 600)	Dr.		5,99,400
	To Equity Share Second and Final Call A/c				5,99,400
	(Amount received on first and final call)

	Share Capital A/c	Dr.		2,000
	Securities Premium A/c			400
	To Share Forfeiture A/c				1,500
	To Share First Call A/c				300
	To Share Second & Final Call A/c				600
	(Shares were forfeited due to the non-payment of arrears)

	Bank A/c	Dr.		1,950
	To Share Capital A/c				1,500
	To Securities Premium A/c				45
	(Out of the forfeited shares, 150 shares were reissued for Rs 13 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		1,125
	To Capital Reserve A/c				1,125
	(Balance in share forfeiture for 150 shares transferred to capital reserve)

Balance Sheet as at …
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	19,99,875
b. Reserves and Surplus
2. Non-Current Liabilities
3. Current Liabilities
Total

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	… Equity Shares of Rs 10 each		xxx

	Issued Share Capital
	2,00,000 Equity Shares of Rs 10 each		20,00,000

	Subscribed, Called-up and Paid-up Share Capital
	1,99,950 shares of Rs 10 each	19,99,500
	Add: Share Forfeiture	375	19,99,875

Working Notes:

WN 1: Computation Table

Category	Shares Applied	Shares Allotted	Money received on Application @ Rs 3 each	Money transferred to Share Capital @ Rs 3 each	Excess Application money	Amount adjusted on Allotment @ Rs 3	Amount adjusted on First Call	Money refunded
I	5,00,000	2,00,000	15,00,000	6,00,000	9,00,000	6,00,000	3,00,000	Nil

	5,00,000	2,00,000	15,00,000	6,00,000	9,00,000	6,00,000	3,00,000	Nil

WN 2: Shares Applied by Dinesh

Question 81:

In the books of Pee Kay Ltd. Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		15,00,000
	To Share Application A/c				15,00,000
	(Application money received on 5,00,000 shares)

	Equity Share Application A/c	Dr.		15,00,000
	To Equity Share Capital A/c				6,00,000
	To Equity Share Allotment A/c				6,00,000
	To Equity Share First Call A/c				3,00,000
	(Application money transferred to Share Capital Account and adjusted towards allotment and first call)

	Equity Share Allotment A/c	Dr.		6,00,000
	To Equity Share Capital A/c				6,00,000
	(Amount due on allotment @ Rs 3 each)

	Bank A/c	Dr.		Nil
	To Equity Share Allotment A/c				Nil
	(Already adjusted through excess application money)

	Equity Share First Call A/c	Dr.		6,00,000
	To Equity Share Capital A/c				4,00,000
	To Securities Premium A/c				2,00,000
	(Amount due on first and final call on 2,00,000 shares)

	Bank A/c (6,00,000 – 3,00,000 – 300)	Dr.		2,99,700
	To Equity Share First Call A/c				2,99,700
	(Amount received on first and final call)

	Equity Share Second & Final Call A/c	Dr.		6,00,000
	To Equity Share Capital A/c				4,00,000
	To Securities Premium A/c				2,00,000
	(Amount due on second call on 2,00,000 shares)

	Bank A/c (6,00,000 – 600)	Dr.		5,99,400
	To Equity Share Second and Final Call A/c				5,99,400
	(Amount received on first and final call)

	Share Capital A/c	Dr.		2,000
	Securities Premium A/c			400
	To Share Forfeiture A/c				1,500
	To Share First Call A/c				300
	To Share Second & Final Call A/c				600
	(Shares were forfeited due to the non-payment of arrears)

	Bank A/c	Dr.		1,950
	To Share Capital A/c				1,500
	To Securities Premium A/c				45
	(Out of the forfeited shares, 150 shares were reissued for Rs 13 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		1,125
	To Capital Reserve A/c				1,125
	(Balance in share forfeiture for 150 shares transferred to capital reserve)

Balance Sheet as at …
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	19,99,875
b. Reserves and Surplus
2. Non-Current Liabilities
3. Current Liabilities
Total

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	… Equity Shares of Rs 10 each		xxx

	Issued Share Capital
	2,00,000 Equity Shares of Rs 10 each		20,00,000

	Subscribed, Called-up and Paid-up Share Capital
	1,99,950 shares of Rs 10 each	19,99,500
	Add: Share Forfeiture	375	19,99,875

Working Notes:

WN 1: Computation Table

Category	Shares Applied	Shares Allotted	Money received on Application @ Rs 3 each	Money transferred to Share Capital @ Rs 3 each	Excess Application money	Amount adjusted on Allotment @ Rs 3	Amount adjusted on First Call	Money refunded
I	5,00,000	2,00,000	15,00,000	6,00,000	9,00,000	6,00,000	3,00,000	Nil

	5,00,000	2,00,000	15,00,000	6,00,000	9,00,000	6,00,000	3,00,000	Nil

WN 2: Shares Applied by Dinesh

Answer:

In the books of Gee Kay Ltd. Journal Entry
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		6,80,000
	To Share Application A/c				6,80,000
	(Application money received on 1,70,000 shares)

	Equity Share Application A/c	Dr.		6,80,000
	To Equity Share Capital A/c				4,00,000
	To Equity Share Allotment A/c				2,00,000
	To Bank A/c				80,000
	(Application money transferred to Share Capital Account and adjusted towards allotment and refunded)

	Equity Share Allotment A/c	Dr.		5,00,000
	To Equity Share Capital A/c				3,00,000
	To Securities Premium A/c				2,00,000
	(Amount due on allotment @ Rs 5 each)

	Bank A/c (5,00,000 – 2,00,000 – 9,000 + 9,000)	Dr.		3,00,000
	Calls-in-Arrears A/c	Dr.		9,000
	To Equity Share Allotment A/c				3,00,000
	To Calls-in-Advance A/c				9,000

	Equity Share First & Final Call A/c	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(Amount due on first and final call)

	Bank A/c (3,00,000 – 9,000 – 9,000)	Dr.		2,82,000
	Calls-in-Arrears A/c	Dr.		9,000
	Calls-in-Advance A/c			9,000
	To Equity Share First & Final Call A/c				3,00,000
	(Amount received on first and final call)

	Bank A/c	Dr.		6,300
	To Calls-in-Arrears A/c				6,000
	To Interest on Calls-in-Arrears A/c				300
	(Amount due from Anil was received along with interest)

	Share Capital A/c	Dr.		20,000
	Securities Premium A/c	Dr.		4,000
	To Share Forfeiture A/c				12,000
	To Share Allotment A/c				6,000
	To Share First & Final Call A/c				6,000
	(Shares were forfeited due to the non-payment of arrears)

	Bank A/c	Dr.		9,000
	Share Forfeiture A/c	Dr.		1,000
	To Share Capital A/c				10,000
	(Out of the forfeited shares, 1,000 shares were reissued for Rs 9 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		5,000
	To Capital Reserve A/c				5,000
	(Balance in share forfeiture for 1,000 shares transferred to capital reserve)

	Interest on Calls-in-Advance A/c	Dr.		300
	To Bank A/c				300
	(Payment is made for interest on calls-in-advance)

Balance Sheet as at …
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	9,96,000
b. Reserves and Surplus	2	2,01,000
2. Non-Current Liabilities
3. Current Liabilities
Total		11,97,000

*NOTES TO ACCOUNTS*
Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	… Equity Shares of Rs 10 each		xxx

	Issued Share Capital
	1,00,000 Equity Shares of Rs 10 each		10,00,000

	Subscribed, Called-up and Paid-up Share Capital
	99,000 shares of Rs 10 each	9,90,000
	Add: Share Forfeiture	6,000	9,96,000

2	Reserves and Surplus
	Securities Premium (2,00,000 – 4,000)	1,96,000
	Capital Reserve	5,000	2,01,000

Working Notes:

WN 1: Computation Table

Category	Shares Applied	Shares Allotted	Money received on Application @ Rs 4 each	Money transferred to Share Capital @ Rs 4 each	Excess Application money	Amount adjusted on Allotment @ Rs 3	Amount adjusted on Securities Premium @ Rs 2	Money refunded
I	1,50,000	1,00,000	6,00,000	4,00,000	2,00,000	2,00,000	0	0
II	20,000	Nil	0	0	80,000	0	0	80,000
	1,70,000	1,00,000	6,00,000	4,00,000	2,80,000	2,00,000	0	80,000

WN 2: Shares Applied by Anil

WN 3: Shares Applied by Amit

Double Entry Book Keeping Ts Grewal (2016) Solutions for Class 12 Commerce Accountancy Chapter 8 - Joint Stock Company Accounts Issue Of Shares

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