Chapter 7 from Textbook Ts Grewal 1 (2014) for Class 12 ACCOUNTANCY

Question 1:

Answer:

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

Gopal Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	44,99,000
2. Non-Current Liabilities
3. Current Liabilities
Total		44,99,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	44,99,000
Total		44,99,000

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	5,00,000 equity shares of Rs 10 each		50,00,000
	Issued Share Capital
	5,00,000 equity shares of Rs 10 each		50,00,000
	Subscribed, Called-up and Paid-up Share Capital
	4,50,000 equity shares of Rs 10 each	45,00,000
	Less: Calls in Arrears (500 shares × Rs 2)	(1,000)	44,99,000

2	Cash and Cash Equivalents
	Cash at Bank		44,99,000

Question 2:

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

Gopal Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	44,99,000
2. Non-Current Liabilities
3. Current Liabilities
Total		44,99,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	44,99,000
Total		44,99,000

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	5,00,000 equity shares of Rs 10 each		50,00,000
	Issued Share Capital
	5,00,000 equity shares of Rs 10 each		50,00,000
	Subscribed, Called-up and Paid-up Share Capital
	4,50,000 equity shares of Rs 10 each	45,00,000
	Less: Calls in Arrears (500 shares × Rs 2)	(1,000)	44,99,000

2	Cash and Cash Equivalents
	Cash at Bank		44,99,000

Answer:

Authorised Capital 2,50,000 equity shares of Rs 10 each

Issued and Subscribed Capital 2,50,000 shares

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

	Bank A/c	Dr.		25,00,000
	To Equity Share Application A/c				25,00,000
	(Share application money received for 2,50,000 equity shares of Rs 10 each)

	Equity Share Application A/c	Dr.		25,00,000
	To Equity Share Capital A/c				25,00,000
	(Share application of 2,50,000 equity shares of Rs 10 each transferred to Equity Share Capital Account )

Question 3:

Authorised Capital 2,50,000 equity shares of Rs 10 each

Issued and Subscribed Capital 2,50,000 shares

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

	Bank A/c	Dr.		25,00,000
	To Equity Share Application A/c				25,00,000
	(Share application money received for 2,50,000 equity shares of Rs 10 each)

	Equity Share Application A/c	Dr.		25,00,000
	To Equity Share Capital A/c				25,00,000
	(Share application of 2,50,000 equity shares of Rs 10 each transferred to Equity Share Capital Account )

Answer:

Authorised Capital 1,60,000 equity shares of Rs 10 each

Issued and Subscribed Capital 80,000 equity shares

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

	Bank A/c	Dr.		8,00,000
	To Equity Share Application A/c				8,00,000
	(Share application money received for 8,000 Equity Shares of Rs 10 each)

	Equity Share Application A/c	Dr.		8,00,000
	To Equity Share Capital A/c				8,00,000
	(Share application of 80,000 shares of Rs 10 each transferred to Equity Share Capital Accounts)

Question 4:

Authorised Capital 1,60,000 equity shares of Rs 10 each

Issued and Subscribed Capital 80,000 equity shares

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

	Bank A/c	Dr.		8,00,000
	To Equity Share Application A/c				8,00,000
	(Share application money received for 8,000 Equity Shares of Rs 10 each)

	Equity Share Application A/c	Dr.		8,00,000
	To Equity Share Capital A/c				8,00,000
	(Share application of 80,000 shares of Rs 10 each transferred to Equity Share Capital Accounts)

Answer:

Issued and Subscribed Capital 10,000 shares of Rs 10 each

Payable as:

Rs	2	on application
Rs	3	on allotment
Rs	2	on first call
Rs	3	on final call
	10

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

	Bank A/c	Dr.			20,000
	To Share Application A/c					20,000
	(Share application money received for 10,000 shares at Rs 2 per share)

	Share Application A/c	Dr.			20,000
	To Share Capital A/c					20,000
	(Share application of 10,000 shares of Rs 2 each transferred to Share Capital)

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

	Bank A/c	Dr.			30,000
	To Share Allotment A/c					30,000
	(Share allotment money received for 10,000 Shares at Rs 3 per share)

	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 per share)

	Bank A/c	Dr.			20,000
	To Share First call A/c					20,000
	(Share first call received on 10,000 shares at Rs 2 per share)

	Share Final Call A/c		Dr.		30,000
	To Share Capital A/c					30,000
	(Share Final call due on 10,000 shares at 3 per shares)

	Bank A/c		Dr.		30,000
	To Share Final Call A/c					30,000
	(Share final call received on 10,000 shares at Rs 3 per share)

Question 5:

Issued and Subscribed Capital 10,000 shares of Rs 10 each

Payable as:

Rs	2	on application
Rs	3	on allotment
Rs	2	on first call
Rs	3	on final call
	10

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

	Bank A/c	Dr.			20,000
	To Share Application A/c					20,000
	(Share application money received for 10,000 shares at Rs 2 per share)

	Share Application A/c	Dr.			20,000
	To Share Capital A/c					20,000
	(Share application of 10,000 shares of Rs 2 each transferred to Share Capital)

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

	Bank A/c	Dr.			30,000
	To Share Allotment A/c					30,000
	(Share allotment money received for 10,000 Shares at Rs 3 per share)

	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 per share)

	Bank A/c	Dr.			20,000
	To Share First call A/c					20,000
	(Share first call received on 10,000 shares at Rs 2 per share)

	Share Final Call A/c		Dr.		30,000
	To Share Capital A/c					30,000
	(Share Final call due on 10,000 shares at 3 per shares)

	Bank A/c		Dr.		30,000
	To Share Final Call A/c					30,000
	(Share final call received on 10,000 shares at Rs 3 per share)

Answer:

Authorised Capital 10,000 shares of Rs 100 each

Issued and Subscribed Capital 10,000 shares

Payable as:

Rs	10	on application
Rs	20	on allotment
Rs	70	on first call and final call
	100

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

	Bank A/c	Dr.		1,00,000
	To Share Application A/c				1,00,000
	(Share application money received for 10,000 shares at Rs 10 each)

	Share Application A/c	Dr.		1,00,000
	To Share Capital A/c				1,00,000
	(Share application of 10,000 shares at Rs 10 each transferred to Share Capital Account)

	Share Allotment A/c	Dr.		2,00,000
	To Share Capital A/c				2,00,000
	(Share allotment due on 10,000 shares at Rs 20 each)

	Bank A/c	Dr.		2,00,000
	To Share Allotment A/c				2,00,000
	(Share allotment money received for 10,000 shares at Rs 20 each)

	Share First and Final Call A/c	Dr.		7,00,000
	To Share Capital A/c				7,00,000
	(Share first and final call due on 10,000 shares at Rs 70 per share)

	Bank A/c	Dr.		7,00,000
	To Share First and Final call A/c				7,00,000
	(Share first and final call received on 10,000 shares at Rs 70 per share)

Question 6:

Authorised Capital 10,000 shares of Rs 100 each

Issued and Subscribed Capital 10,000 shares

Payable as:

Rs	10	on application
Rs	20	on allotment
Rs	70	on first call and final call
	100

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

	Bank A/c	Dr.		1,00,000
	To Share Application A/c				1,00,000
	(Share application money received for 10,000 shares at Rs 10 each)

	Share Application A/c	Dr.		1,00,000
	To Share Capital A/c				1,00,000
	(Share application of 10,000 shares at Rs 10 each transferred to Share Capital Account)

	Share Allotment A/c	Dr.		2,00,000
	To Share Capital A/c				2,00,000
	(Share allotment due on 10,000 shares at Rs 20 each)

	Bank A/c	Dr.		2,00,000
	To Share Allotment A/c				2,00,000
	(Share allotment money received for 10,000 shares at Rs 20 each)

	Share First and Final Call A/c	Dr.		7,00,000
	To Share Capital A/c				7,00,000
	(Share first and final call due on 10,000 shares at Rs 70 per share)

	Bank A/c	Dr.		7,00,000
	To Share First and Final call A/c				7,00,000
	(Share first and final call received on 10,000 shares at Rs 70 per share)

Answer:

Authorised Capital:

Equity Shares 75,000 of Rs 100 each.

9% Preference Shares 25,000 of Rs 100 each.

Issued Capital:

Equity Shares 1,000 of Rs 100 each.

Payable as

Rs 10 on Application

Rs 40 on Allotment

Rs 25 on First Call

Rs 25 on Final Call

Preference Shares 500 of Rs 100 each.

Payable as

Rs 25 on application

Rs 25 on allotment

Rs 50 on first and final call

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

	Equity Share Application		10,000
	Preference Share Application		12,500
	Equity Share Allotment		40,000
	Preference Share Allotment		12,500
	Equity Share First Call		25,000
	Preference Share First and Final Call		25,000
	Equity Share Final Call		25,000		Balance c/d		1,50,000

			1,50,000				1,50,000

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

	Equity Share Application A/c	Dr.		10,000
	To Equity Share Capital A/c				10,000
	(Equity share application of 1,000 shares of Rs 10 each transferred to Equity Share Capital Account)

	Preference Share Application A/c	Dr.		12,500
	To 9% Preference Share Capital A/c				12,500
	(Preference share applications of 500 shares Rs 25 each transferred to 9% Preference Share Capital Account)

	Equity Share Allotment A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Equity share allotment due on 1,000 shares at Rs 40 each)

	Preference Share Allotment A/c	Dr.		12,500
	To 9% Preference Share Capital A/c				12,500
	(Preference share allotment due on 500 shares at Rs 25 each)

	Equity Share First Call A/c	Dr.		25,000
	To Equity Share Capital A/c				25,000
	(Equity share first call due on 1,000 shares at Rs 25 each)

	Preference Share First and Final Call A/c	Dr.		25,000
	To 9% Preference Share Capital A/c				25,000
	(Preference share first and final call due on 500 shares at Rs 50 each)

	Equity Share Final Call A/c	Dr.		25,000
	To Equity Share Capital A/c				25,000
	(Equity share final call due on 1,000 shares at Rs 25 each)

As per the Revised Schedule VI of Companies Act, 1956, the Company's Balance Sheet is presented as follows.

Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholdersâ€™ Funds
a. Share Capital	1	1,50,000
2. Non-Current Liabilities
3. Current Liabilities
Total		1,50,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	1,50,000
Total		1,50,000

NOTES TO ACCOUNTS


Note No.	Particulars				Amount (Rs)
1	Share Capital
	Authorised Share Capital
	75,000 Equity Shares of Rs 100 each	7,50,000
	25,000 9% Preference Shares of Rs 100 each	2,50,000			10,00,000
	Issued Share Capital
	1,000 Equity Shares of Rs 100 each		1,00,000
	500 9% Preference Shares of Rs 100 each		50,000		1,50,000
	Subscribed, Called-up and Paid-up Share Capital
	1,000 Equity Shares of Rs 100 each		1,00,000
	500 9% Preference Shares of Rs 100 each			50,000	1,50,000

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

Question 7:

Authorised Capital:

Equity Shares 75,000 of Rs 100 each.

9% Preference Shares 25,000 of Rs 100 each.

Issued Capital:

Equity Shares 1,000 of Rs 100 each.

Payable as

Rs 10 on Application

Rs 40 on Allotment

Rs 25 on First Call

Rs 25 on Final Call

Preference Shares 500 of Rs 100 each.

Payable as

Rs 25 on application

Rs 25 on allotment

Rs 50 on first and final call

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

	Equity Share Application		10,000
	Preference Share Application		12,500
	Equity Share Allotment		40,000
	Preference Share Allotment		12,500
	Equity Share First Call		25,000
	Preference Share First and Final Call		25,000
	Equity Share Final Call		25,000		Balance c/d		1,50,000

			1,50,000				1,50,000

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

	Equity Share Application A/c	Dr.		10,000
	To Equity Share Capital A/c				10,000
	(Equity share application of 1,000 shares of Rs 10 each transferred to Equity Share Capital Account)

	Preference Share Application A/c	Dr.		12,500
	To 9% Preference Share Capital A/c				12,500
	(Preference share applications of 500 shares Rs 25 each transferred to 9% Preference Share Capital Account)

	Equity Share Allotment A/c	Dr.		40,000
	To Equity Share Capital A/c				40,000
	(Equity share allotment due on 1,000 shares at Rs 40 each)

	Preference Share Allotment A/c	Dr.		12,500
	To 9% Preference Share Capital A/c				12,500
	(Preference share allotment due on 500 shares at Rs 25 each)

	Equity Share First Call A/c	Dr.		25,000
	To Equity Share Capital A/c				25,000
	(Equity share first call due on 1,000 shares at Rs 25 each)

	Preference Share First and Final Call A/c	Dr.		25,000
	To 9% Preference Share Capital A/c				25,000
	(Preference share first and final call due on 500 shares at Rs 50 each)

	Equity Share Final Call A/c	Dr.		25,000
	To Equity Share Capital A/c				25,000
	(Equity share final call due on 1,000 shares at Rs 25 each)

As per the Revised Schedule VI of Companies Act, 1956, the Company's Balance Sheet is presented as follows.

Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholdersâ€™ Funds
a. Share Capital	1	1,50,000
2. Non-Current Liabilities
3. Current Liabilities
Total		1,50,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	1,50,000
Total		1,50,000

NOTES TO ACCOUNTS


Note No.	Particulars				Amount (Rs)
1	Share Capital
	Authorised Share Capital
	75,000 Equity Shares of Rs 100 each	7,50,000
	25,000 9% Preference Shares of Rs 100 each	2,50,000			10,00,000
	Issued Share Capital
	1,000 Equity Shares of Rs 100 each		1,00,000
	500 9% Preference Shares of Rs 100 each		50,000		1,50,000
	Subscribed, Called-up and Paid-up Share Capital
	1,000 Equity Shares of Rs 100 each		1,00,000
	500 9% Preference Shares of Rs 100 each			50,000	1,50,000

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

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
Feb 01	Share Application		40,000
Feb 28	Share Allotment		80,000
May 01	Share First Call		1,19,700
June 30	Share Final Call		1,58,400		Balance c/d		3,98,100
			3,98,100				3,98,100

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2011
Feb 01	Share Application A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(Share application of 40,000 shares at Re 1 each transferred to Share Capital Account)

Feb 01	Share Allotment A/c	Dr.		80,000
	To Share Capital A/c				80,000
	(Share allotment due on 40,000 shares at Rs 2 each)

Mar 01	Share First Call A/c	Dr.		1,20,000
	To Share Capital A/c				1,20,000
	(Share first call due on 40,000 shares at Rs 3 each)

May 30	Calls-in-Arrears A/c	Dr.		300
	To Share First Call A/c				300
	(Share first call outstanding on 100 shares at Rs 3 each)

June 01	Share Final Call A/c	Dr.		1,60,000
	To Share Capital A/c				1,60,000
	(Share final call due on 40,000 shares of Rs 4 each)

June 30	Calls-in-Arrears A/c	Dr.		1,600
	To Share Final Call A/c				1,600
	(Share final call outstanding on 400 shares at Rs 4 each)

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

Kalyan Cotton Mills Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	3,98,100
2. Non-Current Liabilities
3. Current Liabilities
Total		3,98,100

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	3,98,100
Total		3,98,100

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	1,00,000 shares of Rs 10 each		10,00,000
	Issued Share Capital
	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 8:

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
Feb 01	Share Application		40,000
Feb 28	Share Allotment		80,000
May 01	Share First Call		1,19,700
June 30	Share Final Call		1,58,400		Balance c/d		3,98,100
			3,98,100				3,98,100

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2011
Feb 01	Share Application A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(Share application of 40,000 shares at Re 1 each transferred to Share Capital Account)

Feb 01	Share Allotment A/c	Dr.		80,000
	To Share Capital A/c				80,000
	(Share allotment due on 40,000 shares at Rs 2 each)

Mar 01	Share First Call A/c	Dr.		1,20,000
	To Share Capital A/c				1,20,000
	(Share first call due on 40,000 shares at Rs 3 each)

May 30	Calls-in-Arrears A/c	Dr.		300
	To Share First Call A/c				300
	(Share first call outstanding on 100 shares at Rs 3 each)

June 01	Share Final Call A/c	Dr.		1,60,000
	To Share Capital A/c				1,60,000
	(Share final call due on 40,000 shares of Rs 4 each)

June 30	Calls-in-Arrears A/c	Dr.		1,600
	To Share Final Call A/c				1,600
	(Share final call outstanding on 400 shares at Rs 4 each)

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

Kalyan Cotton Mills Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	3,98,100
2. Non-Current Liabilities
3. Current Liabilities
Total		3,98,100

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	3,98,100
Total		3,98,100

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	1,00,000 shares of Rs 10 each		10,00,000
	Issued Share Capital
	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:

Issued Capital 10,000 shares of Rs 10 each

Applied 12,000 shares

Over-subscribed by 2,000 shares

Books of X Limited Journal
Date	Particulars		Debit Amount Rs	Credit Amount Rs

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

	Share Application A/c	Dr.	1,20,000
	To Share Capital A/c			1,00,000
	To Bank A/c			20,000
	(Application of 10,000 shares transferred to Share Capital and of 2,000 hares returned)

Question 9:

Issued Capital 10,000 shares of Rs 10 each

Applied 12,000 shares

Over-subscribed by 2,000 shares

Books of X Limited Journal
Date	Particulars		Debit Amount Rs	Credit Amount Rs

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

	Share Application A/c	Dr.	1,20,000
	To Share Capital A/c			1,00,000
	To Bank A/c			20,000
	(Application of 10,000 shares transferred to Share Capital and of 2,000 hares returned)

Answer:

Issued Capital	20,000 shares at Rs 10 each
Applied	30,000 shares
Over-subscribed	10,000 shares

Applied	Allotted	Over-subscribed
25,000	20,000	5,000
5,000	NIL	5,000
30,000	20,000	10,000

Payable as:

Rs	2.5	on application
Rs	5	on allotment
	7.5	Called-up

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

	Share Application				Share Application
	(30,000 shares × Rs 2.5)		75,000		(5,000 shares × Rs 2.5)		12,500
	Share Allotment		87,500
					Balance c/d		1,50,000
			1,62,500				1,62,500

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

	Share Application A/c	Dr.		62,500
	To Share Capital A/c				50,000
	To Share Allotment A/c				12,500
	(Share application of 20,000 shares at Rs 2.5 each transferred to Share Capital Account and excess money Rs 12,500 transferred to allotment)

	Share Allotment A/c	Dr.		1,00,000
	To Share Capital A/c				1,00,000
	(Share allotment due on 20,000 shares at Rs 5 each)

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

ABC Company Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	1,50,000
2. Non-Current Liabilities
3. Current Liabilities
Total		1,50,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	1,50,000
Total		1,50,000

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	…… shares of Rs 10 each	–
	Issued Share Capital
	20,000 shares of Rs 10 each	2,00,000
	Subscribed, Called-up and Paid-up Share Capital
	20,000 shares of Rs 10 each, on which Rs 7.5 called-up and paid-up	1,50,000

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

Question 10:

Issued Capital	20,000 shares at Rs 10 each
Applied	30,000 shares
Over-subscribed	10,000 shares

Applied	Allotted	Over-subscribed
25,000	20,000	5,000
5,000	NIL	5,000
30,000	20,000	10,000

Payable as:

Rs	2.5	on application
Rs	5	on allotment
	7.5	Called-up

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

	Share Application				Share Application
	(30,000 shares × Rs 2.5)		75,000		(5,000 shares × Rs 2.5)		12,500
	Share Allotment		87,500
					Balance c/d		1,50,000
			1,62,500				1,62,500

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

	Share Application A/c	Dr.		62,500
	To Share Capital A/c				50,000
	To Share Allotment A/c				12,500
	(Share application of 20,000 shares at Rs 2.5 each transferred to Share Capital Account and excess money Rs 12,500 transferred to allotment)

	Share Allotment A/c	Dr.		1,00,000
	To Share Capital A/c				1,00,000
	(Share allotment due on 20,000 shares at Rs 5 each)

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

ABC Company Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	1,50,000
2. Non-Current Liabilities
3. Current Liabilities
Total		1,50,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	1,50,000
Total		1,50,000

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	…… shares of Rs 10 each	–
	Issued Share Capital
	20,000 shares of Rs 10 each	2,00,000
	Subscribed, Called-up and Paid-up Share Capital
	20,000 shares of Rs 10 each, on which Rs 7.5 called-up and paid-up	1,50,000

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

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)

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

Eastern Star Cycle Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	2,50,000
2. Non-Current Liabilities
3. Current Liabilities
Total		2,50,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	2,50,000
Total		2,50,000

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	20,000 shares of Rs 25 each	5,00,000
	Issued Share Capital
	10,000 shares of Rs 25 each	2,50,000
	Subscribed, Called-up and Paid-up Share Capital
	10,000 shares of Rs 25 each	2,50,000

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

Question 11:

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)

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

Eastern Star Cycle Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	2,50,000
2. Non-Current Liabilities
3. Current Liabilities
Total		2,50,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	2,50,000
Total		2,50,000

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	20,000 shares of Rs 25 each	5,00,000
	Issued Share Capital
	10,000 shares of Rs 25 each	2,50,000
	Subscribed, Called-up and Paid-up Share Capital
	10,000 shares of Rs 25 each	2,50,000

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

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 12:

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:

Issued 1,00,000 equity shares of Rs 10 each at a premium of Rs 5

Applied 1,00,000 shares

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

	Bank A/c	Dr.		15,00,000
	To Equity Share Application and Allotment A/c				15,00,000
	(Share application and allotment money received for 1,00,000 Shares at Rs 15 each including Rs 5 premium)

	Equity Share Application and Allotment A/c	Dr.		15,00,000
	To Equity Share Capital A/c				10,00,000
	To Securities Premium A/c				5,00,000
	(Application and allotment money of 1,00,000 shares transferred to Equity Share Capital Account at Rs 10 each and Securities Premium at Rs 5 each)

Question 13:

Issued 1,00,000 equity shares of Rs 10 each at a premium of Rs 5

Applied 1,00,000 shares

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

	Bank A/c	Dr.		15,00,000
	To Equity Share Application and Allotment A/c				15,00,000
	(Share application and allotment money received for 1,00,000 Shares at Rs 15 each including Rs 5 premium)

	Equity Share Application and Allotment A/c	Dr.		15,00,000
	To Equity Share Capital A/c				10,00,000
	To Securities Premium A/c				5,00,000
	(Application and allotment money of 1,00,000 shares transferred to Equity Share Capital Account at Rs 10 each and Securities Premium at Rs 5 each)

Answer:

Issued capital 10,000 equity shares of 10 each at 20% premium

Applied 9,000 equity shares

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

	Bank A/c	Dr.		1,08,000
	To Share Application A/c				1,08,000
	(Share application received for 9,000 shares)

	Share Application A/c	Dr.		1,08,000
	To Equity Share Capital A/c				90,000
	To Securities Premium A/c				18,000
	(Share Application money of 9,000 Shares transferred to Equity Share Capital at Rs 10 each and to securities Premium at Rs 2 each)

Question 14:

Issued capital 10,000 equity shares of 10 each at 20% premium

Applied 9,000 equity shares

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

	Bank A/c	Dr.		1,08,000
	To Share Application A/c				1,08,000
	(Share application received for 9,000 shares)

	Share Application A/c	Dr.		1,08,000
	To Equity Share Capital A/c				90,000
	To Securities Premium A/c				18,000
	(Share Application money of 9,000 Shares transferred to Equity Share Capital at Rs 10 each and to securities Premium at Rs 2 each)

Answer:

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

Applied 10,000 shares

Payable as:

Application	Rs	5
Allotment	Rs	10	(5 + 5)
First Call	Rs	5
Second Call	Rs	5
Final Call	Rs	5
	Rs	30	(25 + 5)

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

	Share Application		50,000
	Share Allotment		1,00,000
	Share First Call		50,000
	Share Second Call		49,000
	Share Final Call		48,000			Balance c/d		2,97,000
			2,97,000					2,97,000

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

	Share Application A/c	Dr.		50,000
	To Share Capital A/c				50,000
	(Application money of 10,000 shares of Rs 5 each transferred to Share Capital)

	Share Allotment A/c	Dr.		1,00,000
	To Share Capital A/c				50,000
	To Securities Premium A/c				50,000
	(Share allotment of 10,000 shares transferred to Share Capital at Rs 5 each and Securities Premium at Rs 5 each)

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

	Share Second Call A/c	Dr.		50,000
	To Share Capital A/c				50,000
	(Second call due on 10,000 shares at 5 each)

	Call-in-Arrears A/c	Dr.		1,000
	To Share Second Call A/c				1,000
	(Second call outstanding on 200 shares at Rs 5 each)

	Share Final Call A/c	Dr.		50,000
	To Shares Capital A/c				50,000
	(Final call due on 50,000 shares of Rs to 5 per shares)

	Calls-in-Arrears A/c	Dr.		2,000
	To Shares Final Call A/c				2,000
	(Final call outstanding on 400 shares at Rs 5 each)

Share Application Account
Dr.							Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Share Capital		50,000		Bank		50,000

			50,000				50,000

Share Allotment Account
Dr.							Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Share Capital		50,000		Bank		1,00,000
	Securities Premium		50,000

			1,00,000				1,00,000

Share First Call Account
Dr.							Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Share Capital		50,000		Bank		50,000

			50,000				50,000

Share Second Call Account
Dr.							Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Share Capital		50,000		Bank		49,000
					Calls-in-Arrears		1,000

			50,000				50,000

Share Final Call Account
Dr.								Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Share Capital		50,000		Bank		48,000
					Calls-in-Arrears		2,000

			50,000				50,000

Call-in-Arrears Account
Dr.								Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Share Second Call		1,000
	Share Final Call		2,000
					Balance c/d		3,000
			3,000				3,000

Share Capital Account
Dr.								Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

					Share Application		50,000
					Share Allotment		50,000
					Share First Call		50,000
					Share Second		50,000
	Balance c/d		2,50,000		Share Final Call		50,000
			2,50,000				2,50,000

Securities Premium Account
Dr.								Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Balance c/d		50,000		Share Allotment		50,000

			50,000				50,000

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

A Limited
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	2,47,000
b. Reserves and Surplus	2	50,000
2. Non-Current Liabilities
3. Current Liabilities
Total		2,97,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	2,97,000
Total		2,97,000

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	……. shares of Rs 25 each		…
	Issued Share Capital
	10,000 shares of Rs 25 each		2,50,000
	Subscribed, Called-up and Paid-up Share Capital
	10,000 shares of Rs 25 each	2,50,000
	Less: Calls-in-Arrears	(3,000)	2,47,000

2	Reserves and Surplus
	Securities Premium		50,000

3	Cash and Cash Equivalents
	Cash at Bank		2,97,000

Question 15:

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

Applied 10,000 shares

Payable as:

Application	Rs	5
Allotment	Rs	10	(5 + 5)
First Call	Rs	5
Second Call	Rs	5
Final Call	Rs	5
	Rs	30	(25 + 5)

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

	Share Application		50,000
	Share Allotment		1,00,000
	Share First Call		50,000
	Share Second Call		49,000
	Share Final Call		48,000			Balance c/d		2,97,000
			2,97,000					2,97,000

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

	Share Application A/c	Dr.		50,000
	To Share Capital A/c				50,000
	(Application money of 10,000 shares of Rs 5 each transferred to Share Capital)

	Share Allotment A/c	Dr.		1,00,000
	To Share Capital A/c				50,000
	To Securities Premium A/c				50,000
	(Share allotment of 10,000 shares transferred to Share Capital at Rs 5 each and Securities Premium at Rs 5 each)

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

	Share Second Call A/c	Dr.		50,000
	To Share Capital A/c				50,000
	(Second call due on 10,000 shares at 5 each)

	Call-in-Arrears A/c	Dr.		1,000
	To Share Second Call A/c				1,000
	(Second call outstanding on 200 shares at Rs 5 each)

	Share Final Call A/c	Dr.		50,000
	To Shares Capital A/c				50,000
	(Final call due on 50,000 shares of Rs to 5 per shares)

	Calls-in-Arrears A/c	Dr.		2,000
	To Shares Final Call A/c				2,000
	(Final call outstanding on 400 shares at Rs 5 each)

Share Application Account
Dr.							Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Share Capital		50,000		Bank		50,000

			50,000				50,000

Share Allotment Account
Dr.							Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Share Capital		50,000		Bank		1,00,000
	Securities Premium		50,000

			1,00,000				1,00,000

Share First Call Account
Dr.							Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Share Capital		50,000		Bank		50,000

			50,000				50,000

Share Second Call Account
Dr.							Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Share Capital		50,000		Bank		49,000
					Calls-in-Arrears		1,000

			50,000				50,000

Share Final Call Account
Dr.								Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Share Capital		50,000		Bank		48,000
					Calls-in-Arrears		2,000

			50,000				50,000

Call-in-Arrears Account
Dr.								Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Share Second Call		1,000
	Share Final Call		2,000
					Balance c/d		3,000
			3,000				3,000

Share Capital Account
Dr.								Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

					Share Application		50,000
					Share Allotment		50,000
					Share First Call		50,000
					Share Second		50,000
	Balance c/d		2,50,000		Share Final Call		50,000
			2,50,000				2,50,000

Securities Premium Account
Dr.								Cr.
Date	Particulars	L.F.	Amount Rs	Date	Particulars	L.F.	Amount Rs

	Balance c/d		50,000		Share Allotment		50,000

			50,000				50,000

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

A Limited
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	2,47,000
b. Reserves and Surplus	2	50,000
2. Non-Current Liabilities
3. Current Liabilities
Total		2,97,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	2,97,000
Total		2,97,000

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	……. shares of Rs 25 each		…
	Issued Share Capital
	10,000 shares of Rs 25 each		2,50,000
	Subscribed, Called-up and Paid-up Share Capital
	10,000 shares of Rs 25 each	2,50,000
	Less: Calls-in-Arrears	(3,000)	2,47,000

2	Reserves and Surplus
	Securities Premium		50,000

3	Cash and Cash Equivalents
	Cash at Bank		2,97,000

Answer:

Authorised Capital 20,000 shares of Rs 10 each

Issued Capital 2,000 shares

Applied 1,800 shares

Payable as:
Application	Rs	3	(2+1)
Allotment	Rs	4	(3+1)
First Call	Rs	2
Final Call	Rs	3
		12	(10+2)

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

	Bank A/c		Dr.		5,400
	To Share Application A/c					5,400
	(Application money received for 1,800 shares at Rs 3 per shares)

	Share Application A/c		Dr.		5,400
	To Share Capital A/c					3,600
	To Securities Premium A/c					1,800
	(Application money of 1,800 share transferred to Share Capital at Rs 2 per share and Securities Premium Re 1 per share)

	Share Allotment A/c		Dr.		7,200
	To Share Capital A/c					5,400
	To Securities Premium A/c					1,800
	(Share allotment due on 1,800 shares at Rs 4 per share including Re 1 securities premium)

	Bank A/c		Dr.		7,200
	To Share Allotment A/c					7,200
	(Share Allotment money received)

	Share First Call A/c		Dr.		3,600
	To Share Capital A/c					3,600
	(Share first call due on 1,800 shares at Rs 2 per shares)

	Bank A/c		Dr.		3,600
	To Share First Call A/c					3,600
	(Share first call money received)

	Share Final Call A/c		Dr.		5,400
	To Share Capital A/c					5,400
	(Share final call due on 1,800 shares at Rs 3 per share)

	Bank A/c				5,400
	To Share Final Call A/c	Dr.				5,400
	(Share final call money received)

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

X Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	18,000
b. Reserves and Surplus	2	3,600
2. Non-Current Liabilities
3. Current Liabilities
Total		21,600

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	21,600
Total		21,600

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	20,000 shares of Rs 10 each	2,00,000
	Issued Share Capital
	2,000 shares of Rs 10 each	20,000
	Subscribed, Called-up and Paid-up Share Capital
	1,800 shares of Rs 10 each	18,000

2	Reserves and Surplus
	Securities Premium	3,600

3	Cash and Cash Equivalents
	Cash at Bank	21,600

Question 16:

Authorised Capital 20,000 shares of Rs 10 each

Issued Capital 2,000 shares

Applied 1,800 shares

Payable as:
Application	Rs	3	(2+1)
Allotment	Rs	4	(3+1)
First Call	Rs	2
Final Call	Rs	3
		12	(10+2)

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

	Bank A/c		Dr.		5,400
	To Share Application A/c					5,400
	(Application money received for 1,800 shares at Rs 3 per shares)

	Share Application A/c		Dr.		5,400
	To Share Capital A/c					3,600
	To Securities Premium A/c					1,800
	(Application money of 1,800 share transferred to Share Capital at Rs 2 per share and Securities Premium Re 1 per share)

	Share Allotment A/c		Dr.		7,200
	To Share Capital A/c					5,400
	To Securities Premium A/c					1,800
	(Share allotment due on 1,800 shares at Rs 4 per share including Re 1 securities premium)

	Bank A/c		Dr.		7,200
	To Share Allotment A/c					7,200
	(Share Allotment money received)

	Share First Call A/c		Dr.		3,600
	To Share Capital A/c					3,600
	(Share first call due on 1,800 shares at Rs 2 per shares)

	Bank A/c		Dr.		3,600
	To Share First Call A/c					3,600
	(Share first call money received)

	Share Final Call A/c		Dr.		5,400
	To Share Capital A/c					5,400
	(Share final call due on 1,800 shares at Rs 3 per share)

	Bank A/c				5,400
	To Share Final Call A/c	Dr.				5,400
	(Share final call money received)

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

X Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	18,000
b. Reserves and Surplus	2	3,600
2. Non-Current Liabilities
3. Current Liabilities
Total		21,600

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	21,600
Total		21,600

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	20,000 shares of Rs 10 each	2,00,000
	Issued Share Capital
	2,000 shares of Rs 10 each	20,000
	Subscribed, Called-up and Paid-up Share Capital
	1,800 shares of Rs 10 each	18,000

2	Reserves and Surplus
	Securities Premium	3,600

3	Cash and Cash Equivalents
	Cash at Bank	21,600

Answer:

Suhani Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	21,00,000
b. Reserves and Surplus	2	1,40,000


2. Non-Current Liabilities
3. Current Liabilities
Total		22,40,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	22,40,000
Total		22,40,000

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	30,000 shares of Rs 150 each	45,00,000
	Issued Share Capital
	15,000 shares of Rs 150 each	22,50,000
	Subscribed, Called-up and Paid-up Share Capital
	14,000 shares of Rs 150 each	21,00,000

2	Reserves and Surplus
	Securities Premium	1,40,000

3	Cash and Cash Equivalents
	Cash at Bank	22,40,000

Question 17:

Suhani Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	21,00,000
b. Reserves and Surplus	2	1,40,000


2. Non-Current Liabilities
3. Current Liabilities
Total		22,40,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	22,40,000
Total		22,40,000

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	30,000 shares of Rs 150 each	45,00,000
	Issued Share Capital
	15,000 shares of Rs 150 each	22,50,000
	Subscribed, Called-up and Paid-up Share Capital
	14,000 shares of Rs 150 each	21,00,000

2	Reserves and Surplus
	Securities Premium	1,40,000

3	Cash and Cash Equivalents
	Cash at Bank	22,40,000

Answer:

Authorised capital 30,000 shares of Rs 10 each

Issued Shares	4,000
Less: Applied Shares	6,000
Over-subscribed Shares	(2,000)

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.		12,000
	To Share Application A/c				12,000
	(Share application money received for 6,000 shares at Rs 2 each)


	Share Application A/c	Dr.		12,000
	To Share Capital A/c				8,000
	To Bank A/c				4,000
	(Share application of 4,000 shares transferred to Share Capital and money of 2,000 over-subscribed shares refunded)

	Share Allotment A/c	Dr.		20,000
	To Share Capital A/c				12,000
	To Securities Premium A/c				8,000
	(Allotment due on 4,000 shares at Rs 5 per share including Rs 2 securities premium)

	Bank A/c	Dr.		20,000
	To Share Allotment A/c				20,000
	(Allotment money received)

	Share First Call A/c	Dr.		12,000
	To Share Capital A/c				12,000
	(First call due on 4,000 shares at Rs 3 each)

	Bank A/c	Dr.		12,000
	To Share First Call A/c				12,000
	(First call money received )

	Share Final Call A/c	Dr.		8,000
	To Share Capital				8,000
	(Final call due on 4,000 shares at Rs 2 each)

	Bank A/c	Dr.		8,000
	To Share Final Call A/c				8,000
	(Final call money received)

As per the Revised Schedule VI of Companies Act, 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	40,000
b. Reserves and Surplus	2	8,000
2. Non-Current Liabilities
3. Current Liabilities
Total		48,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	48,000
Total		48,000

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	30,000 shares of Rs 10 each	3,00,000
	Issued Share Capital
	4,000 shares of Rs 10 each	40,000
	Subscribed, Called-up and Paid-up Share Capital
	4,000 shares of Rs 10 each	40,000

2	Reserves and Surplus
	Securities Premium	8,000

3	Cash and Cash Equivalents
	Cash at Bank	48,000

Question 18:

Authorised capital 30,000 shares of Rs 10 each

Issued Shares	4,000
Less: Applied Shares	6,000
Over-subscribed Shares	(2,000)

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.		12,000
	To Share Application A/c				12,000
	(Share application money received for 6,000 shares at Rs 2 each)


	Share Application A/c	Dr.		12,000
	To Share Capital A/c				8,000
	To Bank A/c				4,000
	(Share application of 4,000 shares transferred to Share Capital and money of 2,000 over-subscribed shares refunded)

	Share Allotment A/c	Dr.		20,000
	To Share Capital A/c				12,000
	To Securities Premium A/c				8,000
	(Allotment due on 4,000 shares at Rs 5 per share including Rs 2 securities premium)

	Bank A/c	Dr.		20,000
	To Share Allotment A/c				20,000
	(Allotment money received)

	Share First Call A/c	Dr.		12,000
	To Share Capital A/c				12,000
	(First call due on 4,000 shares at Rs 3 each)

	Bank A/c	Dr.		12,000
	To Share First Call A/c				12,000
	(First call money received )

	Share Final Call A/c	Dr.		8,000
	To Share Capital				8,000
	(Final call due on 4,000 shares at Rs 2 each)

	Bank A/c	Dr.		8,000
	To Share Final Call A/c				8,000
	(Final call money received)

As per the Revised Schedule VI of Companies Act, 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	40,000
b. Reserves and Surplus	2	8,000
2. Non-Current Liabilities
3. Current Liabilities
Total		48,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	48,000
Total		48,000

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	30,000 shares of Rs 10 each	3,00,000
	Issued Share Capital
	4,000 shares of Rs 10 each	40,000
	Subscribed, Called-up and Paid-up Share Capital
	4,000 shares of Rs 10 each	40,000

2	Reserves and Surplus
	Securities Premium	8,000

3	Cash and Cash Equivalents
	Cash at Bank	48,000

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 19:

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:

Issued 20,000 equity shares of Rs 20 each at 10% discount

Applied 20,000 equity shares

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

	Bank A/c		Dr.		3,60,000
	To Equity Share Application A/c					3,60,000
	(Share application money received for 20,000 shares at Rs 18 each)

	Discount on Issue of Shares A/c	Dr.			40,000
	Equity Share Application A/c	Dr.			3,60,000
	To Equity Share Capital A/c					4,00,000
	(Application money transferred to Equity Share Capital and discount on issue shares adjusted)

Question 20:

Issued 20,000 equity shares of Rs 20 each at 10% discount

Applied 20,000 equity shares

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

	Bank A/c		Dr.		3,60,000
	To Equity Share Application A/c					3,60,000
	(Share application money received for 20,000 shares at Rs 18 each)

	Discount on Issue of Shares A/c	Dr.			40,000
	Equity Share Application A/c	Dr.			3,60,000
	To Equity Share Capital A/c					4,00,000
	(Application money transferred to Equity Share Capital and discount on issue shares adjusted)

Answer:

Issued 10,000 shares of Rs 15 each at Re 1 discount

Applied 10,000 shares

Application	Rs	5
Allotment	Rs	9	(10 – 1)
	Rs	14	(15 – 1)

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

	Bank A/c	Dr.		50,000
	To Share Application A/c				50,000
	(Share application money received for 10,000 shares at Rs 5 each)

	Share Application A/c	Dr.		50,000
	To Share Capital A/c				50,000
	(Share application money transferred to Share Capital)

	Share Allotment A/c	Dr.		90,000
	Discount on issue of Shares A/c			10,000
	To Share Capital A/c				1,00,000
	(Share allotment due on 10,000 shares at Rs 9 each after deducting Re 1 discount)

	Bank A/c	Dr.		90,000
	To Share Allotment A/c				90,000
	(Share allotment money received)

Question 21:

Issued 10,000 shares of Rs 15 each at Re 1 discount

Applied 10,000 shares

Application	Rs	5
Allotment	Rs	9	(10 – 1)
	Rs	14	(15 – 1)

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

	Bank A/c	Dr.		50,000
	To Share Application A/c				50,000
	(Share application money received for 10,000 shares at Rs 5 each)

	Share Application A/c	Dr.		50,000
	To Share Capital A/c				50,000
	(Share application money transferred to Share Capital)

	Share Allotment A/c	Dr.		90,000
	Discount on issue of Shares A/c			10,000
	To Share Capital A/c				1,00,000
	(Share allotment due on 10,000 shares at Rs 9 each after deducting Re 1 discount)

	Bank A/c	Dr.		90,000
	To Share Allotment A/c				90,000
	(Share allotment money received)

Answer:

Issued 50,000 shares of Rs 10 each at 10% discount

Applied 75,000 shares

Payable as:

Application	Rs	2
Allotment	Rs	3	(4–1)
First Call	Rs	2
Final Call	Rs	2
		9	(10–1)

Money received on Application 75,000 shares ×Rs 2	1,50,000
Less: Application money transferred to Share Capital (50,000 shares × Rs 2)	1,00,000
	50,000
Less: Money refunded for 10,000 shares × Rs 2	20,000
Excess money on Application (transferred to Allotment)	30,000

Share Allotment due on 50,000 shares × Rs 3	1,50,000
Less: Excess Application money adjusted	30,000
	1,20,000
Less: Calls-in-Arrears on Allotment 15,000 shares × Rs 3	45,000
Money received for allotment	75,000
Add: Calls-in-Advance 3,500 × 4	14,000
Money received on Allotment	89,000

Question 22:

Issued 50,000 shares of Rs 10 each at 10% discount

Applied 75,000 shares

Payable as:

Application	Rs	2
Allotment	Rs	3	(4–1)
First Call	Rs	2
Final Call	Rs	2
		9	(10–1)

Money received on Application 75,000 shares ×Rs 2	1,50,000
Less: Application money transferred to Share Capital (50,000 shares × Rs 2)	1,00,000
	50,000
Less: Money refunded for 10,000 shares × Rs 2	20,000
Excess money on Application (transferred to Allotment)	30,000

Share Allotment due on 50,000 shares × Rs 3	1,50,000
Less: Excess Application money adjusted	30,000
	1,20,000
Less: Calls-in-Arrears on Allotment 15,000 shares × Rs 3	45,000
Money received for allotment	75,000
Add: Calls-in-Advance 3,500 × 4	14,000
Money received on Allotment	89,000

Answer:

Authorised capital 50,000 shares of Rs 100 each at 4% discount

Issued capital 10,000 shares

Subscribed capital 9,000 shares

Payable as:

Application	Rs	20
Allotment	Rs	30	(34 – 4)
First and Final Call	Rs	46
	Rs	96	(100 – 4)

Books of XYZ 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
	(Share application money received for 9,000 shares at Rs 20 each)

	Share Application A/c	Dr.		1,80,000
	To Share Capital A/c				1,80,000
	(Share application of 9,000 shares at Rs 20 each transferred to Share Capital)

	Share Allotment A/c	Dr.		2,70,000
	Discount on Issue of Shares A/c	Dr.		36,000
	To Share Capital A/c				3,06,000
	(Share allotment due on 9,000 shares at Rs 30 each after deducting discount Rs 4)

	Bank A/c	Dr.		2,70,000
	To Share Allotment A/c				2,70,000
	(Share allotment money received)

	Share First and Final Call A/c	Dr.		4,14,000
	To Share Capital A/c				4,14,000
	(Share first and final call due on 9,000 shares at Rs 46)

	Bank A/c	Dr.		4,14,000
	To Share First and Final Call A/c				4,14,000
	(Share First and Final Call money received)

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

XYZ Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Fund
a. Share Capital	1	9,00,000
b. Reserves & Surplus	2	(7,200)
2. Non-Current Liabilities
3. Current Liabilities
Total		8,92,800

II. Assets
1. Non-Current Assets
a. Other Non-Current Assets	3	21,600
2. Current Assets	4	8,71,200
Total		8,92,800

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	50,000 shares of Rs 100 each	50,00,000
	Issued Share Capital
	10,000 shares of Rs 100 each	10,00,000
	Subscribed, Called-up and Paid-up Share Capital
	9,000 shares of Rs 100 each	9,00,000

2	Reserves & Surplus
	Statement of Profit & Loss	(7,200)

3	Other Non-Current Assets
	Unamortised Discount on Issue of Shares	21,600

4	Current Assets
	Cash at Bank	8,64,000
	Unamortised Discount on Issue of Shares	7,200
		8,71,200

Important points to remember:

Discount on Issue of Shares can be written off against Securities Premium or Statement of Profit & Loss within 3 or 5 years.
In the above solution, the Discount is written off in 5 years i.e. Rs 7,200 [36,000 / 5] for each year is shown as a negative balance in the Reserves and Surplus. The balance of Discount i.e. 28,800 [36,000 – 7,200] is bifurcated as Current and Non-Current Assets.
The answer given in the book is different from that of ours' as the amount of discount has been written-off as per the Revised Schedule VI of Companies Accounts.

Question 23:

Authorised capital 50,000 shares of Rs 100 each at 4% discount

Issued capital 10,000 shares

Subscribed capital 9,000 shares

Payable as:

Application	Rs	20
Allotment	Rs	30	(34 – 4)
First and Final Call	Rs	46
	Rs	96	(100 – 4)

Books of XYZ 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
	(Share application money received for 9,000 shares at Rs 20 each)

	Share Application A/c	Dr.		1,80,000
	To Share Capital A/c				1,80,000
	(Share application of 9,000 shares at Rs 20 each transferred to Share Capital)

	Share Allotment A/c	Dr.		2,70,000
	Discount on Issue of Shares A/c	Dr.		36,000
	To Share Capital A/c				3,06,000
	(Share allotment due on 9,000 shares at Rs 30 each after deducting discount Rs 4)

	Bank A/c	Dr.		2,70,000
	To Share Allotment A/c				2,70,000
	(Share allotment money received)

	Share First and Final Call A/c	Dr.		4,14,000
	To Share Capital A/c				4,14,000
	(Share first and final call due on 9,000 shares at Rs 46)

	Bank A/c	Dr.		4,14,000
	To Share First and Final Call A/c				4,14,000
	(Share First and Final Call money received)

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

XYZ Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Fund
a. Share Capital	1	9,00,000
b. Reserves & Surplus	2	(7,200)
2. Non-Current Liabilities
3. Current Liabilities
Total		8,92,800

II. Assets
1. Non-Current Assets
a. Other Non-Current Assets	3	21,600
2. Current Assets	4	8,71,200
Total		8,92,800

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	50,000 shares of Rs 100 each	50,00,000
	Issued Share Capital
	10,000 shares of Rs 100 each	10,00,000
	Subscribed, Called-up and Paid-up Share Capital
	9,000 shares of Rs 100 each	9,00,000

2	Reserves & Surplus
	Statement of Profit & Loss	(7,200)

3	Other Non-Current Assets
	Unamortised Discount on Issue of Shares	21,600

4	Current Assets
	Cash at Bank	8,64,000
	Unamortised Discount on Issue of Shares	7,200
		8,71,200

Important points to remember:

Discount on Issue of Shares can be written off against Securities Premium or Statement of Profit & Loss within 3 or 5 years.
In the above solution, the Discount is written off in 5 years i.e. Rs 7,200 [36,000 / 5] for each year is shown as a negative balance in the Reserves and Surplus. The balance of Discount i.e. 28,800 [36,000 – 7,200] is bifurcated as Current and Non-Current Assets.
The answer given in the book is different from that of ours' as the amount of discount has been written-off as per the Revised Schedule VI of Companies Accounts.

Answer:


Applied		Allotted
15,000		10,000
5,000		NIL
20,000		10,000

Payable
Application	Rs	20
Allotment	Rs	30	(35–5)
First Call	Rs	25
Final Call	Rs	20
		95	(100–5) per share

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

	Bank A/c	Dr.		4,00,000
	To Preference Share Application A/c				4,00,000
	(Application money received for 20,000 10% Preference Shares at Rs 20 each)

	Preference Share Application A/c	Dr.		4,00,000
	To 10% Preference Share Capital A/c				2,00,000
	To Preference Share Allotment A/c				1,00,000
	To Bank A/c (5,000 shares × Rs 20)				1,00,000
	(Application money of 10,000 shares at Rs 20 each transferred to 10% Preference Share Capital, 5,000 shares money adjusted on allotment and money of remaining 5,000 shares refunded)

	Discount on Issue of Shares A/c	Dr.		50,000
	Preference Share Allotment A/c	Dr.		3,00,000
	To 10% Preference Share Capital A/c				3,50,000
	(Allotment due on 10,000 10% Preference Shares at Rs 30 per share after a discount Rs 5)

	Bank A/c	Dr.		2,00,000
	To 10% Preference Shares Allotment A/c				2,00,000
	(Allotment received after adjustment of excess money of application)

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

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

	Preference Share Final call A/c	Dr.		2,00,000
	To 10% Preference Share Final Call A/c				2,00,000
	(Share final call due on 10,000 shares at Rs 20 each)

	Bank A/c	Dr.		2,00,000
	To Preference Share Final call A/c				2,00,000
	(Share final call received)

As per the Revised Schedule VI of Companies Act, 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	10,00,000
b. Reserves & Surplus	2	(10,000)
2. Non-Current Liabilities
3. Current Liabilities
Total		9,90,000

II. Assets
1. Non-Current Assets
a. Other Non-Current Assets	2	30,000

2. Current Assets	3	9,60,000
Total		9,90,000

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	2,00,000 Equity Shares of Rs 10 each	20,00,000
	20,000 10% Preference Shares of Rs 100 each	20,00,000
	Issued Share Capital
	10,000 10 % Preference Shares of Rs 100 each	10,00,000
	Subscribed, Called-up and Paid-up Share Capital
	10,000 10 % Preference Shares of Rs 100 each	10,00,000

	Reserves & Surplus
	Statement of Profit & Loss	(10,000)

2	Other Non-Current Assets
	Unamortised Discount on Issue of Shares	30,000

3	Current Assets
	Cash at Bank	9,50,000
	Unamortised Discount on Issue of Shares	10,000
		9,60,000

Note: -

Discount on Issue of Shares can be written off against Securities Premium or Statement of Profit & Loss within 3 or 5 years.
In the above solution, the Discount is written off in 5 years i.e. Rs 10,000 [50,000 / 5] for each year and shown as a negative balance in the Reserves and Surplus. The balance of Discount i.e. 40,000 [50,000 – 10,000] is bifurcated as Current and Non-Current Assets.
The answer given in the book is different from that of ours' as the amount of discount has been written-off as per the Revised Schedule VI of Companies Accounts.

Question 24:


Applied		Allotted
15,000		10,000
5,000		NIL
20,000		10,000

Payable
Application	Rs	20
Allotment	Rs	30	(35–5)
First Call	Rs	25
Final Call	Rs	20
		95	(100–5) per share

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

	Bank A/c	Dr.		4,00,000
	To Preference Share Application A/c				4,00,000
	(Application money received for 20,000 10% Preference Shares at Rs 20 each)

	Preference Share Application A/c	Dr.		4,00,000
	To 10% Preference Share Capital A/c				2,00,000
	To Preference Share Allotment A/c				1,00,000
	To Bank A/c (5,000 shares × Rs 20)				1,00,000
	(Application money of 10,000 shares at Rs 20 each transferred to 10% Preference Share Capital, 5,000 shares money adjusted on allotment and money of remaining 5,000 shares refunded)

	Discount on Issue of Shares A/c	Dr.		50,000
	Preference Share Allotment A/c	Dr.		3,00,000
	To 10% Preference Share Capital A/c				3,50,000
	(Allotment due on 10,000 10% Preference Shares at Rs 30 per share after a discount Rs 5)

	Bank A/c	Dr.		2,00,000
	To 10% Preference Shares Allotment A/c				2,00,000
	(Allotment received after adjustment of excess money of application)

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

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

	Preference Share Final call A/c	Dr.		2,00,000
	To 10% Preference Share Final Call A/c				2,00,000
	(Share final call due on 10,000 shares at Rs 20 each)

	Bank A/c	Dr.		2,00,000
	To Preference Share Final call A/c				2,00,000
	(Share final call received)

As per the Revised Schedule VI of Companies Act, 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	10,00,000
b. Reserves & Surplus	2	(10,000)
2. Non-Current Liabilities
3. Current Liabilities
Total		9,90,000

II. Assets
1. Non-Current Assets
a. Other Non-Current Assets	2	30,000

2. Current Assets	3	9,60,000
Total		9,90,000

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	2,00,000 Equity Shares of Rs 10 each	20,00,000
	20,000 10% Preference Shares of Rs 100 each	20,00,000
	Issued Share Capital
	10,000 10 % Preference Shares of Rs 100 each	10,00,000
	Subscribed, Called-up and Paid-up Share Capital
	10,000 10 % Preference Shares of Rs 100 each	10,00,000

	Reserves & Surplus
	Statement of Profit & Loss	(10,000)

2	Other Non-Current Assets
	Unamortised Discount on Issue of Shares	30,000

3	Current Assets
	Cash at Bank	9,50,000
	Unamortised Discount on Issue of Shares	10,000
		9,60,000

Note: -

Discount on Issue of Shares can be written off against Securities Premium or Statement of Profit & Loss within 3 or 5 years.
In the above solution, the Discount is written off in 5 years i.e. Rs 10,000 [50,000 / 5] for each year and shown as a negative balance in the Reserves and Surplus. The balance of Discount i.e. 40,000 [50,000 – 10,000] is bifurcated as Current and Non-Current Assets.
The answer given in the book is different from that of ours' as the amount of discount has been written-off as per the Revised Schedule VI of Companies Accounts.

Answer:

Issued capital 20,000 equity shares of Rs 10 each at Re 1 discount

Applied 35,000 shares


Applied Shares	Allotted Shares	Money received on Application @ Rs 3 each	Application money transferred to Share Capital @ Rs 3 each	Excess Money	Allotment due @ Rs 3 each	Excess money adjusted on Allotment
5,000	5,000	15,000	15,000	–	15,000	–
30,000	15,000	90,000	45,000	45,000	45,000	45,000

35,000	20,000	1,05,000	60,000	45,000	60,000	45,000

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

	Bank A/c	Dr.		1,05,000
	To Equity Share Application A/c				1,05,000
	(Share application money received for 35,000 shares at Rs 3 each)

	Equity Share Application A/c	Dr.		1,05,000
	To Equity Share Capital A/c				60,000
	To Equity Share Allotment A/c				45,000
	(Application money of 20,000 shares at Rs 3 per share transferred to Share Capital and remaining application money to share allotment)

	Share Allotment A/c	Dr.		60,000
	Discount on Issued of Shares A/c	Dr.		20,000
	To Share Capital A/c				80,000
	(Share allotment due on 20,000 shares at Rs 3 per share after deducting discount Re 1)

	Bank A/c	Dr.		15,000
	To Share Allotment A/c				15,000
	(Share allotment money received)

	Share First and Final call A/c	Dr.		60,000
	To Share Capital A/c				60,000
	(Share first and final call due on 20,000 shares at Rs 3 each)

	Bank A/c	Dr.		58,800
	Calls-in-Arrears A/c	Dr.		1,200
	To Share First and Final A/c				60,000
	(Share first and final call received on all the shares expect 400 shares)

Question 25:

Issued capital 20,000 equity shares of Rs 10 each at Re 1 discount

Applied 35,000 shares


Applied Shares	Allotted Shares	Money received on Application @ Rs 3 each	Application money transferred to Share Capital @ Rs 3 each	Excess Money	Allotment due @ Rs 3 each	Excess money adjusted on Allotment
5,000	5,000	15,000	15,000	–	15,000	–
30,000	15,000	90,000	45,000	45,000	45,000	45,000

35,000	20,000	1,05,000	60,000	45,000	60,000	45,000

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

	Bank A/c	Dr.		1,05,000
	To Equity Share Application A/c				1,05,000
	(Share application money received for 35,000 shares at Rs 3 each)

	Equity Share Application A/c	Dr.		1,05,000
	To Equity Share Capital A/c				60,000
	To Equity Share Allotment A/c				45,000
	(Application money of 20,000 shares at Rs 3 per share transferred to Share Capital and remaining application money to share allotment)

	Share Allotment A/c	Dr.		60,000
	Discount on Issued of Shares A/c	Dr.		20,000
	To Share Capital A/c				80,000
	(Share allotment due on 20,000 shares at Rs 3 per share after deducting discount Re 1)

	Bank A/c	Dr.		15,000
	To Share Allotment A/c				15,000
	(Share allotment money received)

	Share First and Final call A/c	Dr.		60,000
	To Share Capital A/c				60,000
	(Share first and final call due on 20,000 shares at Rs 3 each)

	Bank A/c	Dr.		58,800
	Calls-in-Arrears A/c	Dr.		1,200
	To Share First and Final A/c				60,000
	(Share first and final call received on all the shares expect 400 shares)

Answer:

Amount Received on Allotment = Allotment Due on Allotment – Excess Money Received on Application (utilised on allotment) + Amount Received in Advance – Amount Unpaid by Shareholders

= 1,50,000 – 20,000 + 12,000 – 30,000 = 1,12,000

Working Notes:

WN 1

Computation Table
1	2	3	4	5	6	7
Category	Shares Applied	Shares Allotted	Money Received on application at Rs 2 each	Application Money transferred to Share Capital at Rs 2 each	Excess money on Application utilised on Allotment	Bank *(Refund)*
(i)	10,000	–	20,000	–	–	20,000
(ii)	10,000	10,000	20,000	20,000	–	–
(iii)	50,000	40,000	1,00,000	80,000	20,000	–
Total	70,000	50,000	1,40,000	1,00,000	20,000	20,000

WN 1 Calculation of Unpaid Amount on Allotment by Mohan

Amount Due on Allotment = 10,000 × 3 = 30,000

WN 2 Calculation of Amount Received in Advance from Sohan

No. of Shares Allotted = 3,000 shares

Amount received in advance (of both calls) = 3,000 × 4 = 12,000

Question 26:

Amount Received on Allotment = Allotment Due on Allotment – Excess Money Received on Application (utilised on allotment) + Amount Received in Advance – Amount Unpaid by Shareholders

= 1,50,000 – 20,000 + 12,000 – 30,000 = 1,12,000

Working Notes:

WN 1

Computation Table
1	2	3	4	5	6	7
Category	Shares Applied	Shares Allotted	Money Received on application at Rs 2 each	Application Money transferred to Share Capital at Rs 2 each	Excess money on Application utilised on Allotment	Bank *(Refund)*
(i)	10,000	–	20,000	–	–	20,000
(ii)	10,000	10,000	20,000	20,000	–	–
(iii)	50,000	40,000	1,00,000	80,000	20,000	–
Total	70,000	50,000	1,40,000	1,00,000	20,000	20,000

WN 1 Calculation of Unpaid Amount on Allotment by Mohan

Amount Due on Allotment = 10,000 × 3 = 30,000

WN 2 Calculation of Amount Received in Advance from Sohan

No. of Shares Allotted = 3,000 shares

Amount received in advance (of both calls) = 3,000 × 4 = 12,000

Answer:

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

	Assets A/c	Dr.		25,000
	To X Ltd.				25,000
	(Assets bought from X Ltd.)

	X Ltd.	Dr.		25,000
	To Share Capital A/c				20,000
	To Securities Premium A/c				5,000
	(2,000 shares of Rs 10 each issued to X Ltd.)

Question 27:

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

	Assets A/c	Dr.		25,000
	To X Ltd.				25,000
	(Assets bought from X Ltd.)

	X Ltd.	Dr.		25,000
	To Share Capital A/c				20,000
	To Securities Premium A/c				5,000
	(2,000 shares of Rs 10 each issued to X Ltd.)

Answer:

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

	Plant and Machinery A/c	Dr.		99,000
	To Vendor A/c				99,000
	(Plant and Machinery purchased)

	Vendor	Dr.		99,000
	Discount on Issue of Shares A/c	Dr.		1,000
	To Equity Share Capital A/c				1,00,000
	(1,000 shares of Rs 100 each issued to vendor of plant and machinery after allowing discount)

Question 28:

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

	Plant and Machinery A/c	Dr.		99,000
	To Vendor A/c				99,000
	(Plant and Machinery purchased)

	Vendor	Dr.		99,000
	Discount on Issue of Shares A/c	Dr.		1,000
	To Equity Share Capital A/c				1,00,000
	(1,000 shares of Rs 100 each issued to vendor of plant and machinery after allowing discount)

Answer:

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

	Assets A/c	Dr.		4,50,000
	To Vendor				4,50,000
	(Assets purchased from vendor)

	Vendor	Dr.		4,50,000
	Discount on Issue of Shares A/c	Dr.		50,000
	To 10% Preference Share Capital A/c				5,00,000
	(20,000 shares at Rs 25 each issued at 10% discount to vendor of assets)

Working Note-

Question 29:

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

	Assets A/c	Dr.		4,50,000
	To Vendor				4,50,000
	(Assets purchased from vendor)

	Vendor	Dr.		4,50,000
	Discount on Issue of Shares A/c	Dr.		50,000
	To 10% Preference Share Capital A/c				5,00,000
	(20,000 shares at Rs 25 each issued at 10% discount to vendor of assets)

Working Note-

Answer:

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

	Machinery A/c	Dr.		4,00,000
	To Mona & Co.				4,00,000
	(Machinery purchased from Mona & Co.)

	Mona & Co.	Dr.		1,75,000
	To Bank A/c				1,75,000
	(Amount paid to Mona &Co. through by bank draft)

	Mona & Co.	Dr.		2,25,000
	Discount on Issue of Shares A/c	Dr.		25,000
	To Equity Share Capital A/c				2,50,000
	(25,000 shares of Rs 10 each issued at 10% discount to Mona & Co.)

Working Note-

Question 30:

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

	Machinery A/c	Dr.		4,00,000
	To Mona & Co.				4,00,000
	(Machinery purchased from Mona & Co.)

	Mona & Co.	Dr.		1,75,000
	To Bank A/c				1,75,000
	(Amount paid to Mona &Co. through by bank draft)

	Mona & Co.	Dr.		2,25,000
	Discount on Issue of Shares A/c	Dr.		25,000
	To Equity Share Capital A/c				2,50,000
	(25,000 shares of Rs 10 each issued at 10% discount to Mona & Co.)

Working Note-

Answer:

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

	Assets A/c	Dr.		3,80,000
	To Ram Traders				3,80,000
	(Assets purchased from Ram Traders)

	Ram Traders	Dr.		3,80,000
	Discount on Issue of Shares A/c	Dr.		20,000
	To Share Capital A/c				4,00,000
	(4,000 share of Rs 100 each issued at 5% discount to Ram Traders)

Working Notes-

Question 31:

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

	Assets A/c	Dr.		3,80,000
	To Ram Traders				3,80,000
	(Assets purchased from Ram Traders)

	Ram Traders	Dr.		3,80,000
	Discount on Issue of Shares A/c	Dr.		20,000
	To Share Capital A/c				4,00,000
	(4,000 share of Rs 100 each issued at 5% discount to Ram Traders)

Working Notes-

Answer:

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

	Assets A/c	Dr.		5,00,000
	To Krishan Ltd.				5,00,000
	(Assets purchased from Krishan Ltd.)

	Krishan Ltd.	Dr.		80,000
	To Bank A/c				80,000
	(Payment made to Krishan Ltd.)

	Krishna Ltd.	Dr.		4,20,000
	To Share Capital A/c				3,00,000
	To Securities Premium A/c				1,20,000
	(3,000 shares of Rs 100 each issued at a premium of Rs 40)

Working Notes:

Question 32:

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

	Assets A/c	Dr.		5,00,000
	To Krishan Ltd.				5,00,000
	(Assets purchased from Krishan Ltd.)

	Krishan Ltd.	Dr.		80,000
	To Bank A/c				80,000
	(Payment made to Krishan Ltd.)

	Krishna Ltd.	Dr.		4,20,000
	To Share Capital A/c				3,00,000
	To Securities Premium A/c				1,20,000
	(3,000 shares of Rs 100 each issued at a premium of Rs 40)

Working Notes:

Answer:

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

	Sundry Assets A/c	Dr.		4,50,000
	To Murari Ltd.				4,50,000
	(Business purchased from Murari Ltd.)

	Murari Ltd.	Dr.		4,50,000
	Discount on Issue of Shares A/c	Dr.		50,000
	To Share Capital A/c				5,00,000
	(50,000 shares of Rs 10 each issued at 10% discount to Murari Ltd.)

Working Note:

Question 33:

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

	Sundry Assets A/c	Dr.		4,50,000
	To Murari Ltd.				4,50,000
	(Business purchased from Murari Ltd.)

	Murari Ltd.	Dr.		4,50,000
	Discount on Issue of Shares A/c	Dr.		50,000
	To Share Capital A/c				5,00,000
	(50,000 shares of Rs 10 each issued at 10% discount to Murari Ltd.)

Working Note:

Answer:

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

	Plant and Machinery A/c	Dr.		6,00,000
	To Gopal Ltd.				6,00,000
	(Plant and machinery purchased from Gopal Ltd.)

	Gopal Ltd.	Dr.		1,50,000
	To Bank A/c				1,50,000
	(Payment made to Gopal Ltd.)

	Gopal Ltd.	Dr.		4,50,000
	Discount on Issue of Shares A/c	Dr.		50,000
	To Equity Share Capital A/c				5,00,000
	(5,000 equity shares of Rs 100 each
	issued at 10% discount to Gopal Ltd.)

Working Notes-

Question 34:

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

	Plant and Machinery A/c	Dr.		6,00,000
	To Gopal Ltd.				6,00,000
	(Plant and machinery purchased from Gopal Ltd.)

	Gopal Ltd.	Dr.		1,50,000
	To Bank A/c				1,50,000
	(Payment made to Gopal Ltd.)

	Gopal Ltd.	Dr.		4,50,000
	Discount on Issue of Shares A/c	Dr.		50,000
	To Equity Share Capital A/c				5,00,000
	(5,000 equity shares of Rs 100 each
	issued at 10% discount to Gopal Ltd.)

Working Notes-

Answer:

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

	Furniture A/c	Dr.		1,35,000
	To A. B. Ltd.				1,35,000
	(Furniture purchased from A. B Ltd.)

	A.B Ltd.	Dr.		1,35,000
	Discount on Issue of Shares A/c	Dr.		15,000
	To Equity Share Capital A/c				1,50,000
	(15,000 equity shares of Rs 10 each issued at 10% discount to A.B. Ltd.)

Working Note:

Question 35:

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

	Furniture A/c	Dr.		1,35,000
	To A. B. Ltd.				1,35,000
	(Furniture purchased from A. B Ltd.)

	A.B Ltd.	Dr.		1,35,000
	Discount on Issue of Shares A/c	Dr.		15,000
	To Equity Share Capital A/c				1,50,000
	(15,000 equity shares of Rs 10 each issued at 10% discount to A.B. Ltd.)

Working Note:

Answer:

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

	Assets A/c	Dr.		5,00,000
	To Geeta & Co.				5,00,000
	(Assets purchased from Geeta & Co.)

	Geeta & Co.	Dr.		1,00,000
	To Bank A/c				1,00,000
	(Payment made to Geeta & Co.)

	Geeta & Co.	Dr.		4,00,000
	To Equity Share Capital A/c				3,20,000
	To Securities Premium A/c				80,000
	(32,000 equity shares of Rs 10 issued at 25% premium)

Working Note-

Question 36:

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

	Assets A/c	Dr.		5,00,000
	To Geeta & Co.				5,00,000
	(Assets purchased from Geeta & Co.)

	Geeta & Co.	Dr.		1,00,000
	To Bank A/c				1,00,000
	(Payment made to Geeta & Co.)

	Geeta & Co.	Dr.		4,00,000
	To Equity Share Capital A/c				3,20,000
	To Securities Premium A/c				80,000
	(32,000 equity shares of Rs 10 issued at 25% premium)

Working Note-

Answer:

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

	Assets A/c	Dr.		2,20,000
	To C.D Ltd.				2,20,000
	(Assets purchased from C.D Ltd.)

	C.D Ltd.	Dr.		2,20,000
	To 9% Preference Share Capital				2,00,000
	To Securities Premium A/c				20,000
	(2,000 9% Preference Shares of Rs 100 each issued at 10% premium to C.D Ltd.)

Working Note:

Question 37:

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

	Assets A/c	Dr.		2,20,000
	To C.D Ltd.				2,20,000
	(Assets purchased from C.D Ltd.)

	C.D Ltd.	Dr.		2,20,000
	To 9% Preference Share Capital				2,00,000
	To Securities Premium A/c				20,000
	(2,000 9% Preference Shares of Rs 100 each issued at 10% premium to C.D Ltd.)

Working Note:

Answer:

Books Good Luck Ltd. Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs

	Machinery A/c		Dr.		10,00,000
	To Fail Deals Ltd.					10,00,000
	(Machinery purchased from Fair Deals Ltd.)

	Fair Deals Ltd.	Dr.			10,00,000
	To Equity Share Capital A/c					8,00,000
	To Securities Premium A/c					2,00,000
	(80,000 equity shares of Rs 10 each issued at 25% premium)

Working Note-

Question 38:

Books Good Luck Ltd. Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs

	Machinery A/c		Dr.		10,00,000
	To Fail Deals Ltd.					10,00,000
	(Machinery purchased from Fair Deals Ltd.)

	Fair Deals Ltd.	Dr.			10,00,000
	To Equity Share Capital A/c					8,00,000
	To Securities Premium A/c					2,00,000
	(80,000 equity shares of Rs 10 each issued at 25% premium)

Working Note-

Answer:

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

	Machinery A/c	Dr.		10,00,000
	To Ayer Ltd.				10,00,000
	(Machinery purchased from Ayer Ltd.)

	Ayer Ltd.	Dr.		5,00,000
	To Bank A/c				5,00,000
	(Payment made to Ayer Ltd.)

	Ayer Ltd.	Dr.		5,00,000
	To Equity Share Capital A/c				4,00,000
	To Securities Premium A/c				1,00,000
	(4,000 equity shares of Rs 100 each issued at 25% premium)

Working Note-

Question 39:

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

	Machinery A/c	Dr.		10,00,000
	To Ayer Ltd.				10,00,000
	(Machinery purchased from Ayer Ltd.)

	Ayer Ltd.	Dr.		5,00,000
	To Bank A/c				5,00,000
	(Payment made to Ayer Ltd.)

	Ayer Ltd.	Dr.		5,00,000
	To Equity Share Capital A/c				4,00,000
	To Securities Premium A/c				1,00,000
	(4,000 equity shares of Rs 100 each issued at 25% premium)

Working Note-

Answer:

Journal In the Book of Sona Ltd.
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

	Machinery A/c	Dr.		17,00,000
	To Mona Ltd.				17,00,000
	(Machinery purchased on credit from Sona Ltd.)

	Mona Ltd.	Dr.		3,40,000
	To Bank A/c				3,40,000
	(20% amount paid through cheque)

	Mona Ltd. (17,00,000 – 3,40,000)	Dr.		13,60,000
	To Equity Share Capital*				10,88,000
	To Securities Premium A/c*				2,72,000
	(Issued 10,880 shares of Rs 100 each to Mona Ltd. at 25% Premium)

Working Notes: *

Question 40:

Journal In the Book of Sona Ltd.
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

	Machinery A/c	Dr.		17,00,000
	To Mona Ltd.				17,00,000
	(Machinery purchased on credit from Sona Ltd.)

	Mona Ltd.	Dr.		3,40,000
	To Bank A/c				3,40,000
	(20% amount paid through cheque)

	Mona Ltd. (17,00,000 – 3,40,000)	Dr.		13,60,000
	To Equity Share Capital*				10,88,000
	To Securities Premium A/c*				2,72,000
	(Issued 10,880 shares of Rs 100 each to Mona Ltd. at 25% Premium)

Working Notes: *

Answer:

Issued to public payable as:

Rs	30	on application
Rs	30	on allotment
Rs	40	first and final call
Rs	100	Called-up

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

	Land A/c	Dr.		1,00,000
	To Vendor				1,00,000
	(Land purchased from the vendor)

	Vendor	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(1,000 equity of Rs 100 each issued to Vendor)

	Bank A/c	Dr.		1,20,000
	To Equity Share Application A/c				1,20,000
	(Share Application money received for 4,000 equity shares at Rs 30 per share)

	Equity Share Application A/c			1,20,000
	To Equity Share Capital	Dr.			1,20,000
	(Share Application money of 4,000 shares transferred to Equity Share Capital Account)

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

	Bank A/c	Dr.		1,20,000
	To Share Allotment A/c				1,20,000
	(Share allotment received for 4,000 shares at Rs 30 per share)

	Share First and Final Call A/c	Dr.		1,60,000
	To Equity Share Capital A/c				1,60,000
	(First and final call due on 4,000 equity shares at 40 per share)

	Bank A/c	Dr.		1,52,000
	Calls-in-Arrears A/c	Dr.		8,000
	To Share First and Final Call A/c				1,60,000
	(First and final call received from 3,800 shares and 200 share failed to pay it)

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

Better Prospect Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	4,92,000
2. Non-Current Liabilities
3. Current Liabilities
Total		4,92,000

II. Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets	2	1,00,000
2. Current Assets
a. Cash and Cash Equivalents	3	3,92,000
Total		4,92,000

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	…… shares of Rs 100 each		-
	Issued Share Capital
	5,000 shares of Rs 100 each		5,00,000
	Subscribed, Called-up and Paid-up Share Capital
	1,000 shares of Rs 100 each (for consideration other than cash)	1,00,000
	4,000 shares of Rs 100 each	4,00,000
	Less: Calls-in-Arrears	(8,000)	4,92,000

2	Tangible Assets
	Land		1,00,000

3	Cash and Cash Equivalents
	Cash at Bank		3,92,000

Question 41:

Issued to public payable as:

Rs	30	on application
Rs	30	on allotment
Rs	40	first and final call
Rs	100	Called-up

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

	Land A/c	Dr.		1,00,000
	To Vendor				1,00,000
	(Land purchased from the vendor)

	Vendor	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(1,000 equity of Rs 100 each issued to Vendor)

	Bank A/c	Dr.		1,20,000
	To Equity Share Application A/c				1,20,000
	(Share Application money received for 4,000 equity shares at Rs 30 per share)

	Equity Share Application A/c			1,20,000
	To Equity Share Capital	Dr.			1,20,000
	(Share Application money of 4,000 shares transferred to Equity Share Capital Account)

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

	Bank A/c	Dr.		1,20,000
	To Share Allotment A/c				1,20,000
	(Share allotment received for 4,000 shares at Rs 30 per share)

	Share First and Final Call A/c	Dr.		1,60,000
	To Equity Share Capital A/c				1,60,000
	(First and final call due on 4,000 equity shares at 40 per share)

	Bank A/c	Dr.		1,52,000
	Calls-in-Arrears A/c	Dr.		8,000
	To Share First and Final Call A/c				1,60,000
	(First and final call received from 3,800 shares and 200 share failed to pay it)

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

Better Prospect Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	4,92,000
2. Non-Current Liabilities
3. Current Liabilities
Total		4,92,000

II. Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets	2	1,00,000
2. Current Assets
a. Cash and Cash Equivalents	3	3,92,000
Total		4,92,000

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	…… shares of Rs 100 each		-
	Issued Share Capital
	5,000 shares of Rs 100 each		5,00,000
	Subscribed, Called-up and Paid-up Share Capital
	1,000 shares of Rs 100 each (for consideration other than cash)	1,00,000
	4,000 shares of Rs 100 each	4,00,000
	Less: Calls-in-Arrears	(8,000)	4,92,000

2	Tangible Assets
	Land		1,00,000

3	Cash and Cash Equivalents
	Cash at Bank		3,92,000

Answer:

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

	Goodwill A/c	Dr.		4,00,000
	Plant A/c	Dr.		7,00,000
	Stock-in-Trade A/c	Dr.		9,00,000
	Land and Building	Dr.		12,00,000
	To Sundry Creditors A/c				2,00,000
	To Sharma & Co				30,00,000
	(Asset purchased and liabilities accepted from Sharma & Co)

	Sharma & Co	Dr.		30,00,000
	To Share Capital A/c				30,00,000
	(30,000 shares of Rs 100 each issued to Sharma & Co.)

Question 42:

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

	Goodwill A/c	Dr.		4,00,000
	Plant A/c	Dr.		7,00,000
	Stock-in-Trade A/c	Dr.		9,00,000
	Land and Building	Dr.		12,00,000
	To Sundry Creditors A/c				2,00,000
	To Sharma & Co				30,00,000
	(Asset purchased and liabilities accepted from Sharma & Co)

	Sharma & Co	Dr.		30,00,000
	To Share Capital A/c				30,00,000
	(30,000 shares of Rs 100 each issued to Sharma & Co.)

Answer:

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

	Plant and Machinery	Dr.		4,00,000
	Building A/c	Dr.		4,00,000
	Sundry Debtors A/c	Dr.		3,00,000
	Stock A/c	Dr.		4,00,000
	Cash A/c	Dr.		3,00,000
	To Sundry Creditors A/c				2,00,000
	To M/s Rai Brothers				15,00,000
	To Capital Reserve A/c				1,00,000
	(Business of M/s Rai Brothers took over)

	M/s Rai Brothers	Dr.		12,00,000
	To Share Capital A/c				12,00,000
	(Shares issued to M/s Rai Brothers)

	M/S Rai Brothers	Dr.		3,00,000
	To Bank A/c				3,00,000
	(Payment made to M/s Rai Brothers through cheque)

Question 43:

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

	Plant and Machinery	Dr.		4,00,000
	Building A/c	Dr.		4,00,000
	Sundry Debtors A/c	Dr.		3,00,000
	Stock A/c	Dr.		4,00,000
	Cash A/c	Dr.		3,00,000
	To Sundry Creditors A/c				2,00,000
	To M/s Rai Brothers				15,00,000
	To Capital Reserve A/c				1,00,000
	(Business of M/s Rai Brothers took over)

	M/s Rai Brothers	Dr.		12,00,000
	To Share Capital A/c				12,00,000
	(Shares issued to M/s Rai Brothers)

	M/S Rai Brothers	Dr.		3,00,000
	To Bank A/c				3,00,000
	(Payment made to M/s Rai Brothers through cheque)

Answer:

Books of Ghosh Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2012
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 44:

Books of Ghosh Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2012
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:

Amount Payable on:

Application	Rs	2
Allotment	Rs	5	(3+2)
First Call	Rs	2
Called-up	Rs	9	(7+2)

Books of A 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 per share)

	Share Application A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(Share application of 20,000 shares at Rs 2 per share transferred to Share Capital Account)

	Share Allotment A/c	Dr.		1,00,000
	To Share Capital A/c				60,000
	To Securities Premium A/c				40,000
	(Share allotment due on 20,000 shares at Rs 5 per share including Rs 2 premium)

	Bank A/c	Dr.		1,00,000
	To Share Allotment A/c				1,00,000
	(Share allotment received on 20,000 shares at Rs 5 per share)

	Share First Call A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(Share first call due on 20,000 shares at Rs 2 per shares)

	Bank A/c	Dr.		38,900
	Calls-in-Arrears A/c	Dr.		2,000
	To Share First Call A/c				40,000
	To Calls-in-Advance A/c				900
	(Share first call received on 39,000 shares at Rs 2 each, 300 shares paid calls-in-advance at Rs 3 per share and 1,000 shares failed to pay to first call money)

As per the Revised Schedule VI of Companies Act, the 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	1,38,000
b. Reserves and Surplus	2	40,000
2. Non-Current Liabilities
3. Current Liabilities
a. Other Current Liabilities	3	900
Total		1,78,900

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	4	1,78,900
Total		1,78,900

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (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, Rs 7 Called-up and Paid-up	1,40,000
	Less: Calls-in-Arrears	(2,000)	1,38,000

2	Reserves and Surplus
	Securities Premium		40,000

3	Other Current Liabilities
	Calls-in-Advance		900

4	Cash and Cash Equivalents
	Cash at Bank		1,78,900

Question 45:

Amount Payable on:

Application	Rs	2
Allotment	Rs	5	(3+2)
First Call	Rs	2
Called-up	Rs	9	(7+2)

Books of A 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 per share)

	Share Application A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(Share application of 20,000 shares at Rs 2 per share transferred to Share Capital Account)

	Share Allotment A/c	Dr.		1,00,000
	To Share Capital A/c				60,000
	To Securities Premium A/c				40,000
	(Share allotment due on 20,000 shares at Rs 5 per share including Rs 2 premium)

	Bank A/c	Dr.		1,00,000
	To Share Allotment A/c				1,00,000
	(Share allotment received on 20,000 shares at Rs 5 per share)

	Share First Call A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(Share first call due on 20,000 shares at Rs 2 per shares)

	Bank A/c	Dr.		38,900
	Calls-in-Arrears A/c	Dr.		2,000
	To Share First Call A/c				40,000
	To Calls-in-Advance A/c				900
	(Share first call received on 39,000 shares at Rs 2 each, 300 shares paid calls-in-advance at Rs 3 per share and 1,000 shares failed to pay to first call money)

As per the Revised Schedule VI of Companies Act, the 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	1,38,000
b. Reserves and Surplus	2	40,000
2. Non-Current Liabilities
3. Current Liabilities
a. Other Current Liabilities	3	900
Total		1,78,900

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	4	1,78,900
Total		1,78,900

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (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, Rs 7 Called-up and Paid-up	1,40,000
	Less: Calls-in-Arrears	(2,000)	1,38,000

2	Reserves and Surplus
	Securities Premium		40,000

3	Other Current Liabilities
	Calls-in-Advance		900

4	Cash and Cash Equivalents
	Cash at Bank		1,78,900

Answer:

Issued Capital 5,000 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 Revised Schedule VI of Companies Act, the Company's Balance Sheet is presented as follows.

XYZ Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	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 46:

Issued Capital 5,000 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 Revised Schedule VI of Companies Act, the Company's Balance Sheet is presented as follows.

XYZ Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	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:

Issued capital 20,000 equity shares of Rs 10 each at a discount of Re 1

Applied 35,000 shares

Application	Rs	3
Allotment	Rs	3	(4–1)
First and Final Call	Rs	3
		9	(10–1)


Applied Shares	Allotted Shares	Money received on Application at Rs 3 each	Application money transferred to Share Capital at Rs 3 each	Excess Money	Allotment due at Rs 3 each	Excess money application adjusted on allotment
5,000	5,000	15,000	15,000	–	15,000	–
30,000	15,000	90,000	45,000	45,000	45,000	45,000

35,000	20,000	1,05,000	60,000		60,000	45,000

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

	Bank A/c	Dr.		1,05,000
	To Share Application A/c				1,05,000
	(Share application money received for 35,000 shares at Rs 3 each)

	Share Application A/c	Dr.		1,05,000
	To Equity Share Capital A/c				60,000
	To Share Allotment A/c				45,000
	(Share application money adjusted)

	Share Allotment A/c	Dr.		60,000
	Discount on Issue of Share A/c	Dr.		20,000
	To Equity Share Capital A/c				80,000
	(Allotment due on 20,000 shares at Rs 3 each after allowing discount Re 1)

	Bank A/c	Dr.		15,000
	To Share Allotment A/c				15,000
	(Share allotment money received)

	Share First and Final Call A/c	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(Share first and final call due on 20,000 shares at Rs 3 per share)

	Bank A/c	Dr.		57,000
	Calls-in-Arrears A/c	Dr.		3,000
	To Share First and Final Call A/c				60,000
	(Share first and final call received on 19,000 shares and 1,000 shares did not pay it)

Question 47:

Issued capital 20,000 equity shares of Rs 10 each at a discount of Re 1

Applied 35,000 shares

Application	Rs	3
Allotment	Rs	3	(4–1)
First and Final Call	Rs	3
		9	(10–1)


Applied Shares	Allotted Shares	Money received on Application at Rs 3 each	Application money transferred to Share Capital at Rs 3 each	Excess Money	Allotment due at Rs 3 each	Excess money application adjusted on allotment
5,000	5,000	15,000	15,000	–	15,000	–
30,000	15,000	90,000	45,000	45,000	45,000	45,000

35,000	20,000	1,05,000	60,000		60,000	45,000

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

	Bank A/c	Dr.		1,05,000
	To Share Application A/c				1,05,000
	(Share application money received for 35,000 shares at Rs 3 each)

	Share Application A/c	Dr.		1,05,000
	To Equity Share Capital A/c				60,000
	To Share Allotment A/c				45,000
	(Share application money adjusted)

	Share Allotment A/c	Dr.		60,000
	Discount on Issue of Share A/c	Dr.		20,000
	To Equity Share Capital A/c				80,000
	(Allotment due on 20,000 shares at Rs 3 each after allowing discount Re 1)

	Bank A/c	Dr.		15,000
	To Share Allotment A/c				15,000
	(Share allotment money received)

	Share First and Final Call A/c	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(Share first and final call due on 20,000 shares at Rs 3 per share)

	Bank A/c	Dr.		57,000
	Calls-in-Arrears A/c	Dr.		3,000
	To Share First and Final Call A/c				60,000
	(Share first and final call received on 19,000 shares and 1,000 shares did not pay it)

Answer:

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		3,00,000
	To Share Application A/c				3,00,000
	(Application money on 1,50,000 shares received)

	Share Application A/c	Dr.		3,00,000
	To Share Capital A/c				1,50,000
	To Share Allotment A/c (*WN1*)				1,45,000
	To Bank A/c (*WN1*)				5,000
	(Share Application money on 75,000 shares transferred to share capital account and excess was utilised on allotment and balance excess money refunded)

	Share Allotment A/c	Dr.		2,25,000
	Discount on Issue of Shares A/c			75,000
	To Share Capital A/c				3,00,000
	(Allotment money due on allotment)

	Bank A/c (2,25,000 – 1,45,000 – 3,000 + 12,000)	Dr.		89,000
	To Share Allotment A/c (2,25,000 – 1,45,000 – 3,000)				77,000
	To Calls-in-Advance A/c				12,000
	(Allotment money received along with advance call money on 3,000 shares and Rs 1,45,000 excess money adjusted)

	Share Call A/c	Dr.		3,00,000
	To Share Capital A/c				3,00,000
	(Share Call money due)

	Bank A/c (3,00,000 – 8,000 – 12,000)	Dr.		2,80,000
	Calls-in-Advance A/c	Dr.		12,000
	To Share Call A/c				2,92,000
	(Share call money received and Calls-in-Advance money adjusted)

Working Notes:

WN 1

Computation Table
1	2	3	4	5	6	7	8
Category	Shares Applied	Shares Allotted	Money Received on application at Rs 2 each	Application Money transferred to Share Capital at Rs 2 each	Excess money Received on application	Excess Amount on application utilised on Allotment at Rs 3 each	Excess Amount on application to be returned
a	15,000	5,000	30,000	10,000	20,000	15,000	5,000
b	70,000	40,000	1,40,000	80,000	60,000	60,000
c	65,000	30,000	1,30,000	60,000	70,000	70,000
Total	1,50,000	75,000	3,00,000	1,50,000	1,50,000	1,45,000	5,0000 *(Refunded)*

WN 2Calculation of Unpaid Amount on Allotment by Hari

Number of shares applied by Hari = 3,500 shares

Amount received on application (3,500 shares × Rs 2)	7,000
Less: Utilised on application (2,000 shares × Rs 2)	(4,000)
Excess amount received on application	3,000

Amount due on allotment (2,000 shares × Rs 3)	6,000
Less: Excess amount received on application	3,000
Amount unpaid on Allotment by Hari	3,000

Question 48:

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		3,00,000
	To Share Application A/c				3,00,000
	(Application money on 1,50,000 shares received)

	Share Application A/c	Dr.		3,00,000
	To Share Capital A/c				1,50,000
	To Share Allotment A/c (*WN1*)				1,45,000
	To Bank A/c (*WN1*)				5,000
	(Share Application money on 75,000 shares transferred to share capital account and excess was utilised on allotment and balance excess money refunded)

	Share Allotment A/c	Dr.		2,25,000
	Discount on Issue of Shares A/c			75,000
	To Share Capital A/c				3,00,000
	(Allotment money due on allotment)

	Bank A/c (2,25,000 – 1,45,000 – 3,000 + 12,000)	Dr.		89,000
	To Share Allotment A/c (2,25,000 – 1,45,000 – 3,000)				77,000
	To Calls-in-Advance A/c				12,000
	(Allotment money received along with advance call money on 3,000 shares and Rs 1,45,000 excess money adjusted)

	Share Call A/c	Dr.		3,00,000
	To Share Capital A/c				3,00,000
	(Share Call money due)

	Bank A/c (3,00,000 – 8,000 – 12,000)	Dr.		2,80,000
	Calls-in-Advance A/c	Dr.		12,000
	To Share Call A/c				2,92,000
	(Share call money received and Calls-in-Advance money adjusted)

Working Notes:

WN 1

Computation Table
1	2	3	4	5	6	7	8
Category	Shares Applied	Shares Allotted	Money Received on application at Rs 2 each	Application Money transferred to Share Capital at Rs 2 each	Excess money Received on application	Excess Amount on application utilised on Allotment at Rs 3 each	Excess Amount on application to be returned
a	15,000	5,000	30,000	10,000	20,000	15,000	5,000
b	70,000	40,000	1,40,000	80,000	60,000	60,000
c	65,000	30,000	1,30,000	60,000	70,000	70,000
Total	1,50,000	75,000	3,00,000	1,50,000	1,50,000	1,45,000	5,0000 *(Refunded)*

WN 2Calculation of Unpaid Amount on Allotment by Hari

Number of shares applied by Hari = 3,500 shares

Amount received on application (3,500 shares × Rs 2)	7,000
Less: Utilised on application (2,000 shares × Rs 2)	(4,000)
Excess amount received on application	3,000

Amount due on allotment (2,000 shares × Rs 3)	6,000
Less: Excess amount received on application	3,000
Amount unpaid on Allotment by Hari	3,000

Answer:

Books of Bharat Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2006
	Equity Share First Call A/c	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(Shares first call due on 1,00,000 shares at Rs 2 per share)

Mar 01	Bank A/c	Dr.		2,02,400
	To Equity Share First Call A/c				2,00,000
	To Call-In-Advance A/c				2,400
	(Share first call received with call-in-advance of 800 shares at Rs 3 per share)

Question 49:

Books of Bharat Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2006
	Equity Share First Call A/c	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(Shares first call due on 1,00,000 shares at Rs 2 per share)

Mar 01	Bank A/c	Dr.		2,02,400
	To Equity Share First Call A/c				2,00,000
	To Call-In-Advance A/c				2,400
	(Share first call received with call-in-advance of 800 shares at Rs 3 per share)

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 50:

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:

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

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

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

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

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

	Share First and Final Call A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(First and final call due on 10,000 shares at Rs 4 each)

	Bank A/c	Dr.		39,600
	Calls-in-Arrears A/c	Dr.		400
	To Share First and Final Call				40,000
	(First and final call of Rs 4 per share received on 9,900 shares, and 100 shares failed to pay it)

	Share Capital A/c	Dr.		1,000
	To Share Forfeiture A/c				600
	To Calls-in-Arrears A/c				400
	(100 shares of Rs 10 each forfeited for the non-payment of first and final call Rs 4 per share)

	Bank A/c	Dr.		500
	Share Forfeiture A/c	Dr.		500
	To Share Capital A/c				1,000
	(100 shares of Rs 10 each re-issued for the sum of Rs 500)

	Share Forfeiture A/c	Dr.		100
	To Capital Reserve A/c				100
	(Balance in Share Forfeiture Account after re-issue of shares, transferred to Capital Reserve Account)

Working Note

Question 51:

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

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

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

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

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

	Share First and Final Call A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(First and final call due on 10,000 shares at Rs 4 each)

	Bank A/c	Dr.		39,600
	Calls-in-Arrears A/c	Dr.		400
	To Share First and Final Call				40,000
	(First and final call of Rs 4 per share received on 9,900 shares, and 100 shares failed to pay it)

	Share Capital A/c	Dr.		1,000
	To Share Forfeiture A/c				600
	To Calls-in-Arrears A/c				400
	(100 shares of Rs 10 each forfeited for the non-payment of first and final call Rs 4 per share)

	Bank A/c	Dr.		500
	Share Forfeiture A/c	Dr.		500
	To Share Capital A/c				1,000
	(100 shares of Rs 10 each re-issued for the sum of Rs 500)

	Share Forfeiture A/c	Dr.		100
	To Capital Reserve A/c				100
	(Balance in Share Forfeiture Account after re-issue of shares, transferred to Capital Reserve Account)

Working Note

Answer:

Application	25	Balancing Figure
Allotment	30
First Call	20
Final Call	25	Un-called
	100

Called-up Rs 75 per share

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

	Equity Share Capital A/c (900×75)	Dr.		67,500
	To Share Forfeiture A/c				22,500
	To Calls-in-Arrears A/c				45,000
	(900 shares of Rs 100 each Rs 75 called-up, forfeited for the non-payment sum of allotment Rs 30 and first call Rs 20 per share)

	Bank A/c	Dr.		81,000
	To Share Capital A/c				67,500
	To Securities Premium A/c				13,500
	(900 shares of Rs 100 each re-issued as Rs 75 paid-up for Rs 90 each)

	Share Forfeiture A/c	Dr.		22,500
	To Capital Reserve A/c				22,500
	(Balance of Share Forfeiture Account after re-issue, transferred to Capital Reserve Account)

Working Notes-

Question 52:

Application	25	Balancing Figure
Allotment	30
First Call	20
Final Call	25	Un-called
	100

Called-up Rs 75 per share

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

	Equity Share Capital A/c (900×75)	Dr.		67,500
	To Share Forfeiture A/c				22,500
	To Calls-in-Arrears A/c				45,000
	(900 shares of Rs 100 each Rs 75 called-up, forfeited for the non-payment sum of allotment Rs 30 and first call Rs 20 per share)

	Bank A/c	Dr.		81,000
	To Share Capital A/c				67,500
	To Securities Premium A/c				13,500
	(900 shares of Rs 100 each re-issued as Rs 75 paid-up for Rs 90 each)

	Share Forfeiture A/c	Dr.		22,500
	To Capital Reserve A/c				22,500
	(Balance of Share Forfeiture Account after re-issue, transferred to Capital Reserve Account)

Working Notes-

Answer:

Books of M Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2012
May 01	Equity Share Capital A/c	Dr.		20,000
	To Share Forfeiture A/c				15,000
	To Call-in-Arrears A/c				5,000
	(2,000 shares of Rs 10 each forfeited for non-payment of final call Rs 2.5 per share)

June 10	Bank A/c	Dr.		10,800
	Share Forfeiture A/c	Dr.		7,200
	To Share Capital A/c				18,000
	(1,800 shares of Rs 10 each re-issued at Rs 6 per share fully paid-up)

	Share Forfeiture A/c	Dr.		6,300
	To Capital Reserve A/c				6,300
	(Balance in Shares Forfeiture Account of 1,800 re-issue, transferred to Capital Reserve Account)

Working Notes:

Share Forfeiture	7.5	Cr.
Share Forfeiture	4	Dr.
Balance in Share Forfeiture Account after re-issue	3.5	Cr. per share

Capital Reserve = No. of Shares reissued × Balance in Share Forfeiture Account after reissue (per share)

= 1,800 × Rs 3.5 (per share)

= Rs 6,300

Question 53:

Books of M Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2012
May 01	Equity Share Capital A/c	Dr.		20,000
	To Share Forfeiture A/c				15,000
	To Call-in-Arrears A/c				5,000
	(2,000 shares of Rs 10 each forfeited for non-payment of final call Rs 2.5 per share)

June 10	Bank A/c	Dr.		10,800
	Share Forfeiture A/c	Dr.		7,200
	To Share Capital A/c				18,000
	(1,800 shares of Rs 10 each re-issued at Rs 6 per share fully paid-up)

	Share Forfeiture A/c	Dr.		6,300
	To Capital Reserve A/c				6,300
	(Balance in Shares Forfeiture Account of 1,800 re-issue, transferred to Capital Reserve Account)

Working Notes:

Share Forfeiture	7.5	Cr.
Share Forfeiture	4	Dr.
Balance in Share Forfeiture Account after re-issue	3.5	Cr. per share

Capital Reserve = No. of Shares reissued × Balance in Share Forfeiture Account after reissue (per share)

= 1,800 × Rs 3.5 (per share)

= Rs 6,300

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 54:

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 55:

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 Revised Schedule VI of Companies Act, the Company's Balance Sheet is presented as follows.

Hindustan Manufacturing Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	10,00,000
b. Reserves and Surplus	2	300
2. Non-Current Liabilities
3. Current Liabilities
Total		10,00,300

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	10,00,300
Total		10,00,300

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	1,00,000 shares of Rs 10 each	10,00,000
	Issued Share Capital
	1,00,000 shares of Rs 10 each	10,00,000
	Subscribed, Called-up and Paid-up Share Capital
	1,00,000 shares of Rs 10 each	10,00,000

2	Reserves and Surplus
	Capital Reserve	300

3	Cash and Cash Equivalents
	Cash at Bank	10,00,300

Working Notes:

Share Forfeiture Credit (100 shares × Rs 5 each)	500
Less: Share Forfeiture Debit (100 share × Rs 2 each)	200	Loss on re-issue
Balance in Share Forfeiture Account after re-issue	300

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

Question 56:

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 Revised Schedule VI of Companies Act, the Company's Balance Sheet is presented as follows.

Hindustan Manufacturing Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	10,00,000
b. Reserves and Surplus	2	300
2. Non-Current Liabilities
3. Current Liabilities
Total		10,00,300

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	10,00,300
Total		10,00,300

NOTES TO ACCOUNTS


Note No.	Particulars	Amount (Rs)
1	Share Capital
	Authorised Share Capital
	1,00,000 shares of Rs 10 each	10,00,000
	Issued Share Capital
	1,00,000 shares of Rs 10 each	10,00,000
	Subscribed, Called-up and Paid-up Share Capital
	1,00,000 shares of Rs 10 each	10,00,000

2	Reserves and Surplus
	Capital Reserve	300

3	Cash and Cash Equivalents
	Cash at Bank	10,00,300

Working Notes:

Share Forfeiture Credit (100 shares × Rs 5 each)	500
Less: Share Forfeiture Debit (100 share × Rs 2 each)	200	Loss on re-issue
Balance in Share Forfeiture Account after re-issue	300

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

Answer:

Journal Entries
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2014
May 01	Share Capital A/c (15 × 200)	Dr.		3,000
	To Share Forfeiture A/c (10 × 200)				2,000
	To Calls-in-Arrears A/c (5 × 200)				1,000
	(200 shares of Rs 20 each, Rs 15 called-up forfeited for the non-payment Rs 5 per share)

May 11	Bank A/c (10 × 200)	Dr.		2,000
	Share Forfeiture A/c (5 × 200)	Dr.		1,000
	To Share Capital A/c (15 × 200)				3,000
	(200 shares of Rs 20 each re-issued at Rs 10 each, Rs 15 paid-up)

May 11	Share Forfeiture A/c	Dr.		1,000
	To Capital Reserve A/c				1,000
	(Balance in share forfeiture after re-issue transferred to Capital Reserve)

Working Note-

Share Forfeiture Credit (at the time of forfeiture)	2,000
Less: Share Forfeiture Debit (at the time of re-issue)	1,000
Balance in Share Forfeiture Account after re-issue	1,000

Capital Reserve = Balance in Share Forfeiture Account after re-issue = Rs 1,000

Question 57:

Journal Entries
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2014
May 01	Share Capital A/c (15 × 200)	Dr.		3,000
	To Share Forfeiture A/c (10 × 200)				2,000
	To Calls-in-Arrears A/c (5 × 200)				1,000
	(200 shares of Rs 20 each, Rs 15 called-up forfeited for the non-payment Rs 5 per share)

May 11	Bank A/c (10 × 200)	Dr.		2,000
	Share Forfeiture A/c (5 × 200)	Dr.		1,000
	To Share Capital A/c (15 × 200)				3,000
	(200 shares of Rs 20 each re-issued at Rs 10 each, Rs 15 paid-up)

May 11	Share Forfeiture A/c	Dr.		1,000
	To Capital Reserve A/c				1,000
	(Balance in share forfeiture after re-issue transferred to Capital Reserve)

Working Note-

Share Forfeiture Credit (at the time of forfeiture)	2,000
Less: Share Forfeiture Debit (at the time of re-issue)	1,000
Balance in Share Forfeiture Account after re-issue	1,000

Capital Reserve = Balance in Share Forfeiture Account after re-issue = Rs 1,000

Answer:

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

	Share Capital A/c (100 × 8)	Dr.		800
	Securities Premium A/c (100 × 2)	Dr.		200
	To Share Forfeiture A/c (100 × 5)				500
	To Calls-in-Arrears A/c (100 × 5)				500
	(100 shares of Rs 10 each, Rs 8 called-up with premium Rs 2 per share, forfeited for the non-payment of Rs 5 each including Rs 2 premium)

	Bank A/c	Dr.		490
	Share Forfeiture A/c	Dr.		70
	To Share Capital A/c				560
	(70 shares of Rs 10 each re-issued at Rs 7 per share, Rs 8 paid-up)

	Share Forfeiture A/c	Dr.		280
	To Capital Reserve A/c				280
	(Balance of 70 shares re-issued shares in Share Forfeiture Account transferred to Capital Reserve)

Working Note-

Share Forfeiture Credit	5	per share
Less: Share Forfeiture Debit	1	per share
Balance in Share Forfeiture of re-issued shares	4	per share

Capital Reserve = Balance in Share Forfeiture Account of re-issued shares × No. of shares re-issued

= 70 × 4

= Rs 280

Question 58:

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

	Share Capital A/c (100 × 8)	Dr.		800
	Securities Premium A/c (100 × 2)	Dr.		200
	To Share Forfeiture A/c (100 × 5)				500
	To Calls-in-Arrears A/c (100 × 5)				500
	(100 shares of Rs 10 each, Rs 8 called-up with premium Rs 2 per share, forfeited for the non-payment of Rs 5 each including Rs 2 premium)

	Bank A/c	Dr.		490
	Share Forfeiture A/c	Dr.		70
	To Share Capital A/c				560
	(70 shares of Rs 10 each re-issued at Rs 7 per share, Rs 8 paid-up)

	Share Forfeiture A/c	Dr.		280
	To Capital Reserve A/c				280
	(Balance of 70 shares re-issued shares in Share Forfeiture Account transferred to Capital Reserve)

Working Note-

Share Forfeiture Credit	5	per share
Less: Share Forfeiture Debit	1	per share
Balance in Share Forfeiture of re-issued shares	4	per share

Capital Reserve = Balance in Share Forfeiture Account of re-issued shares × No. of shares re-issued

= 70 × 4

= Rs 280

Answer:

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

	Equity Share Capital A/c	Dr.		600
	To Share Forfeiture A/c				400
	To Calls-in-Arrears A/c				200
	(100 shares of Rs 10 each Rs 6 called up, forfeited for the non-payment of first call Rs 2 per shares)

	Bank A/c	Dr.		700
	Share Forfeiture A/c	Dr.		300
	To Share Capital A/c				1,000
	(100 shares of 10 each re-issued at Rs 7 per share, fully paid-up)

	Share Forfeiture A/c	Dr.		100
	To Capital Reserve A/c				100
	(Balance in Share Forfeiture of re-issued shares transferred to Capital Reserve)

Working Note-

Share Forfeiture Credit	Rs	400
Share Forfeiture Debit	Rs	300
Balance in Share Forfeiture of re-issued shares		100

Capital Reserve = Balance in Share Forfeiture of re-issued shares = Rs 100

Question 59:

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

	Equity Share Capital A/c	Dr.		600
	To Share Forfeiture A/c				400
	To Calls-in-Arrears A/c				200
	(100 shares of Rs 10 each Rs 6 called up, forfeited for the non-payment of first call Rs 2 per shares)

	Bank A/c	Dr.		700
	Share Forfeiture A/c	Dr.		300
	To Share Capital A/c				1,000
	(100 shares of 10 each re-issued at Rs 7 per share, fully paid-up)

	Share Forfeiture A/c	Dr.		100
	To Capital Reserve A/c				100
	(Balance in Share Forfeiture of re-issued shares transferred to Capital Reserve)

Working Note-

Share Forfeiture Credit	Rs	400
Share Forfeiture Debit	Rs	300
Balance in Share Forfeiture of re-issued shares		100

Capital Reserve = Balance in Share Forfeiture of re-issued shares = Rs 100

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 Revised Schedule VI of Companies Act, the 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 60:

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 Revised Schedule VI of Companies Act, the 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 Revised Schedule VI of Companies Act, the 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 61:

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 Revised Schedule VI of Companies Act, the 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:

(i)	Book of Devendra Limited
Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2010
Jan. 01		Equity Share Capital A/c	Dr.		1,000
		To Share Forfeiture A/c				800
		To Calls-in-Arrears A/c				200
		(100 shares of Rs 10 each forfeited for the non-payment of Rs 2 per share)

Feb. 01		Bank A/c	Dr.		420
		Share Forfeiture A/c	Dr.		180
		To Equity Share Capital A/c				600
		(60 shares of Rs 10 each re-issued at Rs 7 per share, fully paid-up)

		Share Forfeiture A/c	Dr.		300
		To Capital Reserve A/c				300
		(Balance in Share Forfeiture Account of 60 shares after re-issue transferred to Capital Reserve)

Working Note:

Forfeiture of re-issued shares

Share Forfeiture Credit	Rs	8	per share
Share Forfeiture Debit	Rs	3	per share
Balance in Share Forfeiture after re-issue		5	per share

General Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued

= Rs 5 × 60

= Rs 300

(ii)	Book of Virender Limited
	Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Share Capital A/c	Dr.		1,200
		To Share Forfeiture A/c				400
		To Calls-in-Arrears A/c				800
		(20 shares of Rs 100 each Rs 60 called-up forfeited for the non-payment of Rs 40 per share)

		Bank A/c	Dr.		675
		Share Forfeiture A/c	Dr.		225
		To Share Capital A/c				900
		(15 shares of Rs 100 each re-issued for Rs 45 per share as Rs 60 paid-up)

		Share Forfeiture A/c	Dr.		75
		To Capital Reserve A/c				75
		(Balance in Share Forfeiture of 15 re-issued shares transferred to Capital Reserve)

Working Note:

Forfeiture of reissued shares
Share Forfeiture Credit (at the time of forfeiture )	Rs	20	per share
Share Forfeiture Debit (at the time of re-issue)	Rs	15	per share
Balance in Share Forfeiture after re-issue	Rs	5	per share

Capital Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued

= Rs 5 × 15 Shares

= Rs 75

Question 62:

(i)	Book of Devendra Limited
Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2010
Jan. 01		Equity Share Capital A/c	Dr.		1,000
		To Share Forfeiture A/c				800
		To Calls-in-Arrears A/c				200
		(100 shares of Rs 10 each forfeited for the non-payment of Rs 2 per share)

Feb. 01		Bank A/c	Dr.		420
		Share Forfeiture A/c	Dr.		180
		To Equity Share Capital A/c				600
		(60 shares of Rs 10 each re-issued at Rs 7 per share, fully paid-up)

		Share Forfeiture A/c	Dr.		300
		To Capital Reserve A/c				300
		(Balance in Share Forfeiture Account of 60 shares after re-issue transferred to Capital Reserve)

Working Note:

Forfeiture of re-issued shares

Share Forfeiture Credit	Rs	8	per share
Share Forfeiture Debit	Rs	3	per share
Balance in Share Forfeiture after re-issue		5	per share

General Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued

= Rs 5 × 60

= Rs 300

(ii)	Book of Virender Limited
	Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Share Capital A/c	Dr.		1,200
		To Share Forfeiture A/c				400
		To Calls-in-Arrears A/c				800
		(20 shares of Rs 100 each Rs 60 called-up forfeited for the non-payment of Rs 40 per share)

		Bank A/c	Dr.		675
		Share Forfeiture A/c	Dr.		225
		To Share Capital A/c				900
		(15 shares of Rs 100 each re-issued for Rs 45 per share as Rs 60 paid-up)

		Share Forfeiture A/c	Dr.		75
		To Capital Reserve A/c				75
		(Balance in Share Forfeiture of 15 re-issued shares transferred to Capital Reserve)

Working Note:

Forfeiture of reissued shares
Share Forfeiture Credit (at the time of forfeiture )	Rs	20	per share
Share Forfeiture Debit (at the time of re-issue)	Rs	15	per share
Balance in Share Forfeiture after re-issue	Rs	5	per share

Capital Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued

= Rs 5 × 15 Shares

= Rs 75

Answer:

Application	Rs	1
Allotment	Rs	2
First Call	Rs	3
Second Call	Rs	2
	Rs	8	Called-up

Journal Entries
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Forfeiture of Shares
	*Shares of A*
	Share Capital A/c	Dr.		800
	To Share Forfeiture A/c				100
	To Calls-In-Arrears A/c				700
	(100 shares of Rs 10 each, Rs 8 called-up, held by A forfeited for the non-payment of Rs 7 per share)

	*Shares of B*
	Share Capital A/c	Dr.		1,600
	To Share Forfeiture A/c				600
	To Calls-in-Arrears A/c				1,000
	(200 shares of Rs 10 each, Rs 8 called-up, held by B forfeited for non-payment of Rs 5 per share)

	*Shares of C*
	Share Capital A/c	Dr.		2,400
	To Share Forfeiture A/c				1,800
	To Calls-in-Arrears A/c				600
	(300 shares of Rs 10 each, Rs 8 called-up held by C forfeited for the non-payment of Rs 2 per share)
	Re-issue of shares

	Bank A/c	Dr.		6,600
	To Share Capital A/c				6,000
	To Securities Premium A/c				600
	(600 shares of Rs 10 each re-issued at Rs 11 per share fully paid-up)

	Share Forfeiture A/c	Dr.		2,500
	To Capital Reserve A/c				2,500
	(Share Forfeiture transferred to Capital Reserve)

Working Note:

Share Forfeiture of 100 shares held by A	Rs	100	Cr.
Share Forfeiture of 200 shares held by B	Rs	600	Cr.
Share Forfeiture of 300 shares held by C	Rs	1,800	Cr.
Total Share Forfeiture credit (at the time of cancellation of shares)	Rs	2,500

Calculation of Capital Reserve

Total Share Forfeiture (at the time of cancellation of shares) = Rs 2,500 Cr.

Less: Total Share Forfeiture (at the time of re-issue of shares) = (NIL) Dr.

Capital Reserve =Rs 2,500

Question 63:

Application	Rs	1
Allotment	Rs	2
First Call	Rs	3
Second Call	Rs	2
	Rs	8	Called-up

Journal Entries
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Forfeiture of Shares
	*Shares of A*
	Share Capital A/c	Dr.		800
	To Share Forfeiture A/c				100
	To Calls-In-Arrears A/c				700
	(100 shares of Rs 10 each, Rs 8 called-up, held by A forfeited for the non-payment of Rs 7 per share)

	*Shares of B*
	Share Capital A/c	Dr.		1,600
	To Share Forfeiture A/c				600
	To Calls-in-Arrears A/c				1,000
	(200 shares of Rs 10 each, Rs 8 called-up, held by B forfeited for non-payment of Rs 5 per share)

	*Shares of C*
	Share Capital A/c	Dr.		2,400
	To Share Forfeiture A/c				1,800
	To Calls-in-Arrears A/c				600
	(300 shares of Rs 10 each, Rs 8 called-up held by C forfeited for the non-payment of Rs 2 per share)
	Re-issue of shares

	Bank A/c	Dr.		6,600
	To Share Capital A/c				6,000
	To Securities Premium A/c				600
	(600 shares of Rs 10 each re-issued at Rs 11 per share fully paid-up)

	Share Forfeiture A/c	Dr.		2,500
	To Capital Reserve A/c				2,500
	(Share Forfeiture transferred to Capital Reserve)

Working Note:

Share Forfeiture of 100 shares held by A	Rs	100	Cr.
Share Forfeiture of 200 shares held by B	Rs	600	Cr.
Share Forfeiture of 300 shares held by C	Rs	1,800	Cr.
Total Share Forfeiture credit (at the time of cancellation of shares)	Rs	2,500

Calculation of Capital Reserve

Total Share Forfeiture (at the time of cancellation of shares) = Rs 2,500 Cr.

Less: Total Share Forfeiture (at the time of re-issue of shares) = (NIL) Dr.

Capital Reserve =Rs 2,500

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 64:

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 65:

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)

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 Revised Schedule VI of Companies Act, the 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 66:

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 Revised Schedule VI of Companies Act, the 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:

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 Revised Schedule VI of Companies Act, the 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 67:

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 Revised Schedule VI of Companies Act, the 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 68:

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:

Authorised Capital 25,000 shares of Rs 10 each

Issued Capital:

4,000 shares to the vendor of building

8,000 shares issued to public

Share Issued to public payable as:

Application	Rs	2	Per Share	(6,000 + 1,250 + 500 + 250	=	8,000)
Allotment	Re	1	Per Share	(6,000 + 1,250, + 500	=	7,750)
First Call	Re	1	Per Share	(6,000 + 1,250	=	7,250)
Second Call	Re	1	Per Share	(6,000 +	=	6,000)
		5	Per Share

Shares to be forfeited (on which paid less then Rs 4) are as:

Shares on which paid Rs 3 per share	500
Shares on which paid Rs 2 per share	250
Number of shares to be forfeited =	750

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

	Building A/c	Dr.		40,000
	To Vendor				40,000
	(Building purchased)

	Vendor	Dr.		40,000
	To Share Capital A/c				40,000
	(4,000 shares of Rs 10 each issued to the vendor in consideration of building purchased)

	Bank A/c	Dr.		16,000
	To Share Application A/c				16,000
	(Share application money received for 8,000 shares at Rs 2 each)

	Share Application A/c	Dr.		16,000
	To Share Capital A/c				16,000
	(Share application of 8,000 shares transferred to Share Capital Account)

	Share Allotment A/c	Dr.		8,000
	To Share Capital A/c				8,000
	(Share allotment due on 8,000 shares at Re 1 each)

	Bank A/c	Dr.		7,750
	Calls-In-Arrears A/c	Dr.		250
	To Share Allotment A/c				8,000
	(Share Allotment of Re 1 each received from 7,750 shares and holders of 250 shares failed to pay it)

	Share First Call A/c	Dr.		8,000
	To Share Capital A/c				8,000
	(Share first call due on 8,000 shares at Re 1each)

	Bank A/c	Dr.		7,250
	Calls-In-Arrears A/c	Dr.		750
	To Share First-Call A/c				8,000
	(Share first call Re 1 received 7,250 shares and holders of 750 shares failed to pay it)

	Share Second Call A/c	Dr.		8,000
	To Share Capital A/c				8,000
	(Share final call due on 8,000 shares at Re 1 each)

	Bank A/c	Dr.		6,000
	Calls-In-Arrears A/c	Dr.		2,000
	To Share Second Call A/c				8,000
	(Share second call Re 1 received from 6,000 shares and holder of 2,000 share failed to pay it)

	Share Capital A/c (750 × 5)	Dr.		3,750
	To Share Forfeiture A/c ((500 × 3) + (250 × 2))				2,000
	To Calls in Arrears (500 × 2 + 250 × 3)				1,750
	(750 shares of Rs 10 each Rs 5 called-up on which less than Rs 4 had received, were forfeited)

	Bank A/c	Dr.		2,250
	Share Forfeiture A/c	Dr.		1,500
	To Share Capital A/c				3,750
	(750 shares re-issued at Rs 3 per share as Rs 5 paid-up)

	Share Forfeiture A/c	Dr.		500
	To Capital Reserve				500
	(Balance in Share Forfeiture Account transferred to Capital Reserve)

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

New Company Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	78,750
b. Reserves and Surplus	2	500
2. Non-Current Liabilities
3. Current Liabilities
Total		79,250

II. Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets	3	40,000
2. Current Assets
a. Cash and Cash Equivalents	4	39,250
Total		79,250

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	25,000 shares of Rs 10 each		2,50,000
	Issued Share Capital
	12,000 shares of Rs 10 each		1,20,000
	Subscribed, Called-up and Paid-up Share Capital
	4,000 shares of Rs 10 each(for consideration other than cash)	40,000
	8,000 shares of Rs 10 each, Rs 5 Called-up	40,000
	Less: Calls in Arrears (1,250 shares × Re 1)	(1,250)	78,750

2	Reserves and Surplus
	Capital Reserve		500

3	Tangible Assets
	Building		40,000

4	Cash and Cash Equivalents
	Cash at Bank		39,250

Working Notes:

1.

Calls-in-Arrears on Allotment (250 shares × Re 1)	250
Calls-in-Arrears on First Call (750 shares × Re 1)	750
Calls-in-Arrears on Second Call (2,000 shares × Re 1)	2,000
Total Calls-in-Arrears Debit	3,000
Less: Calls-in-Arrears Credit (at the time of forfeiture)	(1,750)
Calls-in-Arrears to be shown in the Balance Sheet	1250

2. Calculation of amount of share forfeiture credited on shares re-issued shares

Share Forfeiture of 250 shares (on which Rs 2 per share paid)	Rs	500	Cr.
Share Forfeiture of 500 shares (on which Rs 3 per share paid)	Rs	1,500	Cr.
Total Share Forfeiture credit (on 750 shares)	Rs	2,000

Calculation of Capital Reserve

Total Share Forfeiture (on 750 shares) = Rs 2,000 credit

Less: Share Forfeiture (750 shares × Rs 2 per share) = Rs (1,500) debit

Capital Reserve = Rs 500

Question 69:

Authorised Capital 25,000 shares of Rs 10 each

Issued Capital:

4,000 shares to the vendor of building

8,000 shares issued to public

Share Issued to public payable as:

Application	Rs	2	Per Share	(6,000 + 1,250 + 500 + 250	=	8,000)
Allotment	Re	1	Per Share	(6,000 + 1,250, + 500	=	7,750)
First Call	Re	1	Per Share	(6,000 + 1,250	=	7,250)
Second Call	Re	1	Per Share	(6,000 +	=	6,000)
		5	Per Share

Shares to be forfeited (on which paid less then Rs 4) are as:

Shares on which paid Rs 3 per share	500
Shares on which paid Rs 2 per share	250
Number of shares to be forfeited =	750

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

	Building A/c	Dr.		40,000
	To Vendor				40,000
	(Building purchased)

	Vendor	Dr.		40,000
	To Share Capital A/c				40,000
	(4,000 shares of Rs 10 each issued to the vendor in consideration of building purchased)

	Bank A/c	Dr.		16,000
	To Share Application A/c				16,000
	(Share application money received for 8,000 shares at Rs 2 each)

	Share Application A/c	Dr.		16,000
	To Share Capital A/c				16,000
	(Share application of 8,000 shares transferred to Share Capital Account)

	Share Allotment A/c	Dr.		8,000
	To Share Capital A/c				8,000
	(Share allotment due on 8,000 shares at Re 1 each)

	Bank A/c	Dr.		7,750
	Calls-In-Arrears A/c	Dr.		250
	To Share Allotment A/c				8,000
	(Share Allotment of Re 1 each received from 7,750 shares and holders of 250 shares failed to pay it)

	Share First Call A/c	Dr.		8,000
	To Share Capital A/c				8,000
	(Share first call due on 8,000 shares at Re 1each)

	Bank A/c	Dr.		7,250
	Calls-In-Arrears A/c	Dr.		750
	To Share First-Call A/c				8,000
	(Share first call Re 1 received 7,250 shares and holders of 750 shares failed to pay it)

	Share Second Call A/c	Dr.		8,000
	To Share Capital A/c				8,000
	(Share final call due on 8,000 shares at Re 1 each)

	Bank A/c	Dr.		6,000
	Calls-In-Arrears A/c	Dr.		2,000
	To Share Second Call A/c				8,000
	(Share second call Re 1 received from 6,000 shares and holder of 2,000 share failed to pay it)

	Share Capital A/c (750 × 5)	Dr.		3,750
	To Share Forfeiture A/c ((500 × 3) + (250 × 2))				2,000
	To Calls in Arrears (500 × 2 + 250 × 3)				1,750
	(750 shares of Rs 10 each Rs 5 called-up on which less than Rs 4 had received, were forfeited)

	Bank A/c	Dr.		2,250
	Share Forfeiture A/c	Dr.		1,500
	To Share Capital A/c				3,750
	(750 shares re-issued at Rs 3 per share as Rs 5 paid-up)

	Share Forfeiture A/c	Dr.		500
	To Capital Reserve				500
	(Balance in Share Forfeiture Account transferred to Capital Reserve)

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

New Company Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	78,750
b. Reserves and Surplus	2	500
2. Non-Current Liabilities
3. Current Liabilities
Total		79,250

II. Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets	3	40,000
2. Current Assets
a. Cash and Cash Equivalents	4	39,250
Total		79,250

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	25,000 shares of Rs 10 each		2,50,000
	Issued Share Capital
	12,000 shares of Rs 10 each		1,20,000
	Subscribed, Called-up and Paid-up Share Capital
	4,000 shares of Rs 10 each(for consideration other than cash)	40,000
	8,000 shares of Rs 10 each, Rs 5 Called-up	40,000
	Less: Calls in Arrears (1,250 shares × Re 1)	(1,250)	78,750

2	Reserves and Surplus
	Capital Reserve		500

3	Tangible Assets
	Building		40,000

4	Cash and Cash Equivalents
	Cash at Bank		39,250

Working Notes:

1.

Calls-in-Arrears on Allotment (250 shares × Re 1)	250
Calls-in-Arrears on First Call (750 shares × Re 1)	750
Calls-in-Arrears on Second Call (2,000 shares × Re 1)	2,000
Total Calls-in-Arrears Debit	3,000
Less: Calls-in-Arrears Credit (at the time of forfeiture)	(1,750)
Calls-in-Arrears to be shown in the Balance Sheet	1250

2. Calculation of amount of share forfeiture credited on shares re-issued shares

Share Forfeiture of 250 shares (on which Rs 2 per share paid)	Rs	500	Cr.
Share Forfeiture of 500 shares (on which Rs 3 per share paid)	Rs	1,500	Cr.
Total Share Forfeiture credit (on 750 shares)	Rs	2,000

Calculation of Capital Reserve

Total Share Forfeiture (on 750 shares) = Rs 2,000 credit

Less: Share Forfeiture (750 shares × Rs 2 per share) = Rs (1,500) debit

Capital Reserve = Rs 500

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 70:

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 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 71:

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

	Share Capital A/c (Rs 80 – 10 premium)	Dr.		70
	To Share Forfeiture (Rs 60 – 10 premium)				50
	To Calls-In-Arrears A/c				20
	(A share of Rs 100 on which Rs 70 called excluding the amount of securities premium Rs 10, forfeited for non-payment of Rs 20)

	Bank A/c	Dr.		70
	Share Forfeiture A/c	Dr.		30
	To Share Capital A/c				100
	(A share of Rs 100 re-issued at Rs 70 as fully paid-up)

	Share Forfeiture A/c	Dr.		20
	To Capital Reserve A/c				20
	(Balance in Share Forfeiture after re-issue transferred to Capital Reserve)

Question 72:

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

	Share Capital A/c (Rs 80 – 10 premium)	Dr.		70
	To Share Forfeiture (Rs 60 – 10 premium)				50
	To Calls-In-Arrears A/c				20
	(A share of Rs 100 on which Rs 70 called excluding the amount of securities premium Rs 10, forfeited for non-payment of Rs 20)

	Bank A/c	Dr.		70
	Share Forfeiture A/c	Dr.		30
	To Share Capital A/c				100
	(A share of Rs 100 re-issued at Rs 70 as fully paid-up)

	Share Forfeiture A/c	Dr.		20
	To Capital Reserve A/c				20
	(Balance in Share Forfeiture after re-issue transferred to Capital Reserve)

Answer:

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

	Share Capital A/c (300 × 8)	Dr.		2,400
	To Share Forfeiture A/c (300 × 6)				1,800
	To Calls-In-Arrears (300 × 2)				600
	(300 shares of Rs 10 each on which Rs 8 had called, forfeited for non-payment Rs 2 per share)

	Bank A/c	Dr.		1,500
	To Share Capital A/c				1,500
	(150 shares of Rs 10 each re-issued for the sum of Rs 1,500)

	Share Forfeiture A/c	Dr.		900
	To Capital Reserve A/c				900
	(Balance in Share Forfeiture Account of 150 re-issued shares, transferred to Capital Reserve)

Working Notes

Share Forfeiture of Re-issued Shares

Share Forfeiture (at the time of forfeiture)	Cr.	6
Less: Share Forfeiture (at the time of re-issue)	Dr.	NIL
Balance in Share Forfeiture after re-issue	Cr.	6	per share

Capital Reserve = Balance in Share Forfeiture after reissue (per share) × Number of Shares Reissued

= Rs 6 × 150

= Rs 900

Question 73:

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

	Share Capital A/c (300 × 8)	Dr.		2,400
	To Share Forfeiture A/c (300 × 6)				1,800
	To Calls-In-Arrears (300 × 2)				600
	(300 shares of Rs 10 each on which Rs 8 had called, forfeited for non-payment Rs 2 per share)

	Bank A/c	Dr.		1,500
	To Share Capital A/c				1,500
	(150 shares of Rs 10 each re-issued for the sum of Rs 1,500)

	Share Forfeiture A/c	Dr.		900
	To Capital Reserve A/c				900
	(Balance in Share Forfeiture Account of 150 re-issued shares, transferred to Capital Reserve)

Working Notes

Share Forfeiture of Re-issued Shares

Share Forfeiture (at the time of forfeiture)	Cr.	6
Less: Share Forfeiture (at the time of re-issue)	Dr.	NIL
Balance in Share Forfeiture after re-issue	Cr.	6	per share

Capital Reserve = Balance in Share Forfeiture after reissue (per share) × Number of Shares Reissued

= Rs 6 × 150

= Rs 900

Answer:

Application	Rs	5
Allotment	Rs	3	(1+2)
First and Final Call	Rs	4
		12	(10+2)

Called-up = Application + Allotment

= Rs 5 + 3 (including premium Rs 2)

Book of JCV Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Share Capital A/c (200×6)	Dr.		1,200
	Securities Premium A/c (200×2)	Dr.		400
	To Share Forfeiture A/c (20×5)				1,000
	To Calls-in-Arrears A/c (200×3)				600
	(200 shares of Rs 10 each on which Rs 8 had called (including Rs 2 premium), forfeited for the non-payment of allotment Rs 3 (including Rs 2 premium)

	Bank A/c	Dr.		800
	Share Forfeiture A/c	Dr.		200
	To Share Capital A/c				1,000
	(100 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		300
	To Capital Reserve				300
	(Amount of share forfeiture of 100 re-issued shares transferred to Capital Reserve)

Working Note

Share Forfeiture of Re-issued Shares

Share Forfeiture (at the time of forfeiture)	Cr.	5
Share Forfeiture (at the time of re-issue)	Dr.	2
Balance in Share Forfeitre (after re-issue)	Cr.	3	per share

Capital Reserve = Balance in share forfeiture of re-issued (per share) ×No. of shares re-issued

= Rs 3 Share × 100

= Rs 300

Question 74:

Application	Rs	5
Allotment	Rs	3	(1+2)
First and Final Call	Rs	4
		12	(10+2)

Called-up = Application + Allotment

= Rs 5 + 3 (including premium Rs 2)

Book of JCV Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Share Capital A/c (200×6)	Dr.		1,200
	Securities Premium A/c (200×2)	Dr.		400
	To Share Forfeiture A/c (20×5)				1,000
	To Calls-in-Arrears A/c (200×3)				600
	(200 shares of Rs 10 each on which Rs 8 had called (including Rs 2 premium), forfeited for the non-payment of allotment Rs 3 (including Rs 2 premium)

	Bank A/c	Dr.		800
	Share Forfeiture A/c	Dr.		200
	To Share Capital A/c				1,000
	(100 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		300
	To Capital Reserve				300
	(Amount of share forfeiture of 100 re-issued shares transferred to Capital Reserve)

Working Note

Share Forfeiture of Re-issued Shares

Share Forfeiture (at the time of forfeiture)	Cr.	5
Share Forfeiture (at the time of re-issue)	Dr.	2
Balance in Share Forfeitre (after re-issue)	Cr.	3	per share

Capital Reserve = Balance in share forfeiture of re-issued (per share) ×No. of shares re-issued

= Rs 3 Share × 100

= Rs 300

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 75:

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:

Authorised capital 15,000 shares of 100 each

Issued and applied capital 5,000 shares of Rs 100 each at a premium Rs 5

Application	=	Rs 25
Allotment	=	Rs 30	(25+5)
First Call	=	Rs 25
Final Call	=	Rs 25
		105	(100+5)

Books of U.P. Sugar Works Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2004
	Bank A/c	Dr.		1,25,000
	To Share Application A/c				1,25,000
	(Share application money received for 5,000 shares at Rs 25 each)

Apr. 01	Share Application A/c	Dr.		1,25,000
	To Share Capital A/c				1,25,000
	(Share application money transferred to Share Capital)

Apr. 01	Share Allotment A/c	Dr.		1,50,000
	To Share Capital A/c				1,25,000
	To Securities Premium A/c				25,000
	(Share allotment due on 5,000 shares at Rs 30 each including Rs 5 premium)

	Bank A/c	Dr.		1,50,000
	To Share Allotment				1,50,000
	(Share allotment money received)


Jul. 01	Share First Call A/c	Dr.		1,25,000
	To Share Capital A/c				1,25,000
	(Share first call due on 5,000 shares at Rs 25 each)

	Bank A/c	Dr.		1,25,000
	To Share First Call A/c				1,25,000
	(Share first call money received)

Oct 01	Share Final Call A/c	Dr.		1,25,000
	To Share Capital A/c				1,25,000
	(Share final call due on 5,000 shares at Rs 25 each)

	Bank A/c	Dr.		1,22,500
	Calls-in-Arrears A/c	Dr.		2,500
	To Share Final Call A/c				1,25,000
	(Share final call Rs 25 each received for 4,900 shares and a holder of 100 share failed to pay it)

Nov. 01	Share Capital A/c (100×100)	Dr.		10,000
	To Share Forfeiture A/c (100×75)				7,500
	To Calls-in-Arrears A/c (100×25)				2,500
	(100 shares forfeited for the non-payment of final call)

Question 76:

Authorised capital 15,000 shares of 100 each

Issued and applied capital 5,000 shares of Rs 100 each at a premium Rs 5

Application	=	Rs 25
Allotment	=	Rs 30	(25+5)
First Call	=	Rs 25
Final Call	=	Rs 25
		105	(100+5)

Books of U.P. Sugar Works Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2004
	Bank A/c	Dr.		1,25,000
	To Share Application A/c				1,25,000
	(Share application money received for 5,000 shares at Rs 25 each)

Apr. 01	Share Application A/c	Dr.		1,25,000
	To Share Capital A/c				1,25,000
	(Share application money transferred to Share Capital)

Apr. 01	Share Allotment A/c	Dr.		1,50,000
	To Share Capital A/c				1,25,000
	To Securities Premium A/c				25,000
	(Share allotment due on 5,000 shares at Rs 30 each including Rs 5 premium)

	Bank A/c	Dr.		1,50,000
	To Share Allotment				1,50,000
	(Share allotment money received)


Jul. 01	Share First Call A/c	Dr.		1,25,000
	To Share Capital A/c				1,25,000
	(Share first call due on 5,000 shares at Rs 25 each)

	Bank A/c	Dr.		1,25,000
	To Share First Call A/c				1,25,000
	(Share first call money received)

Oct 01	Share Final Call A/c	Dr.		1,25,000
	To Share Capital A/c				1,25,000
	(Share final call due on 5,000 shares at Rs 25 each)

	Bank A/c	Dr.		1,22,500
	Calls-in-Arrears A/c	Dr.		2,500
	To Share Final Call A/c				1,25,000
	(Share final call Rs 25 each received for 4,900 shares and a holder of 100 share failed to pay it)

Nov. 01	Share Capital A/c (100×100)	Dr.		10,000
	To Share Forfeiture A/c (100×75)				7,500
	To Calls-in-Arrears A/c (100×25)				2,500
	(100 shares forfeited for the non-payment of final call)

Answer:

Issued and applied 50,000 equity shares at Rs 10 each at a premium Re 1

Application	Rs	2
Allotment	Rs	5	(4+1)
First Call	Rs	2
Final Call	Rs	2
	Rs	11	(10+1) called-up

Books of Messrs Accountancy Publication Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		1,00,000
	To Equity Share Application A/c				1,00,000
	(Share application received for 50,000 shares at Rs 2 each)

	Equity Share Application A/c	Dr.		1,00,000
	To Equity Share capital A/c				1,00,000
	(Share application money transferred to Share Capital)

	Equity Share Allotment A/c	Dr.		2,50,000
	To Equity Share Capital A/c				2,00,000
	To Securities Premium A/c				50,000
	(Share allotment due on 50,000 shares at Rs 5 each including Re1 premium)

	Bank A/c	Dr.		2,47,500
	Calls-in-Arrears A/c	Dr.		2,500
	To Equity Share Allotment				2,50,000
	(Share allotment at Rs 5 each, received on 49,500 shares and holders of 500 shares failed to pay it)

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

	Bank A/c	Dr.		99,000
	Calls-in-Arrears A/c	Dr.		1,000
	To Equity Share first call A/c				1,00,000
	(First call received on 49,500 shares and 500 shares failed to pay it)

	Equity Shares Capital A/c	Dr.		5,000
	Securities Premium A/c	Dr.		500
	To Share Forfeiture				1,000
	To Calls-in-Arrears A/c				4,500
	(500 shares forfeited for the non-payment of Rs 7 including Re 1 premium)

	Equity Share Final Call A/c	Dr.		99,000
	To Equity Share Capital A/c				99,000
	(Share final call due 49,500 share at Rs 2 each)

	Bank A/c	Dr.		99,000
	To Equity Share Final Call A/c				99,000
	(Share final call money received)

	Bank A/c	Dr.		4,500
	Share Forfeiture A/c	Dr.		500
	To Equity Share Capital A/c				5,000
	(500 shares of Rs10 each reissued for Rs 9 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		500
	To Capital Reserve A/c				500
	(Balance of Share Forfeiture after re-issue transferred to Capital Reserve)

Working Note:

Share Forfeiture Credit	1,000
Less: Share Forfeiture Debit	500
Balance in Share Forfeiture (after re-issue)	500

Capital Reserve = Balance in Share Forfeiture (after re-issue)

= Rs 500

Question 77:

Issued and applied 50,000 equity shares at Rs 10 each at a premium Re 1

Application	Rs	2
Allotment	Rs	5	(4+1)
First Call	Rs	2
Final Call	Rs	2
	Rs	11	(10+1) called-up

Books of Messrs Accountancy Publication Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		1,00,000
	To Equity Share Application A/c				1,00,000
	(Share application received for 50,000 shares at Rs 2 each)

	Equity Share Application A/c	Dr.		1,00,000
	To Equity Share capital A/c				1,00,000
	(Share application money transferred to Share Capital)

	Equity Share Allotment A/c	Dr.		2,50,000
	To Equity Share Capital A/c				2,00,000
	To Securities Premium A/c				50,000
	(Share allotment due on 50,000 shares at Rs 5 each including Re1 premium)

	Bank A/c	Dr.		2,47,500
	Calls-in-Arrears A/c	Dr.		2,500
	To Equity Share Allotment				2,50,000
	(Share allotment at Rs 5 each, received on 49,500 shares and holders of 500 shares failed to pay it)

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

	Bank A/c	Dr.		99,000
	Calls-in-Arrears A/c	Dr.		1,000
	To Equity Share first call A/c				1,00,000
	(First call received on 49,500 shares and 500 shares failed to pay it)

	Equity Shares Capital A/c	Dr.		5,000
	Securities Premium A/c	Dr.		500
	To Share Forfeiture				1,000
	To Calls-in-Arrears A/c				4,500
	(500 shares forfeited for the non-payment of Rs 7 including Re 1 premium)

	Equity Share Final Call A/c	Dr.		99,000
	To Equity Share Capital A/c				99,000
	(Share final call due 49,500 share at Rs 2 each)

	Bank A/c	Dr.		99,000
	To Equity Share Final Call A/c				99,000
	(Share final call money received)

	Bank A/c	Dr.		4,500
	Share Forfeiture A/c	Dr.		500
	To Equity Share Capital A/c				5,000
	(500 shares of Rs10 each reissued for Rs 9 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		500
	To Capital Reserve A/c				500
	(Balance of Share Forfeiture after re-issue transferred to Capital Reserve)

Working Note:

Share Forfeiture Credit	1,000
Less: Share Forfeiture Debit	500
Balance in Share Forfeiture (after re-issue)	500

Capital Reserve = Balance in Share Forfeiture (after re-issue)

= Rs 500

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 78:

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 79:

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:

Issued and Applied 20,000 equity shares of Rs 10 each at a premium of Rs 5

Application	Rs	7	(2+5)
Allotment	Rs	5
First and Final Call	Rs	3
		15	(10+5) per share

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

	Bank A/c	Dr.		140,000
	To Equity Share Application A/c				140,000
	(Share application money received for 20,000 shares at Rs 7 each)

	Equity Share Application A/c	Dr.		1,40,000
	To Equity Share Capital A/c				40,000
	To Securities Premium A/c				1,00,000
	(Share application money of 20,000 shares transferred Share Capital at Rs25 per share and Securities Premium at Rs 5 per share)

	Equity Share Allotment A/c	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(Share allotment due on 20,000 shares at Rs 5 each)

	Bank A/c	Dr.		99,000
	Calls-in-Arrears A/c	Dr.		1,000
	To Equity Share Allotment A/c				1,00,000
	(Share allotment received on 19,800 shares and a holder of 200 shares failed to pay it)

	Equity Share First and Final call A/c	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(First and final call due on 20,000 shares at Rs 3 each)

	Bank A/c	Dr.		59,400
	Calls-in-Arrears A/c	Dr.		600
	To Equity Share First and Final Call A/c				60,000
	(First and final call received on 19,800 shares and a holder of 200 shares failed to pay it)

	Equity Share Capital A/c	Dr.		2,000
	To Share Forfeiture A/c (Rs 2 × 200 Shares)				400
	To Calls-in-Arrears A/c				16,00
	(200 shares of Rs 10 each forfeited for the non-payment amount due Rs 8 per share)

	Bank A/c	Dr.		1,600
	To Equity Share Capital A/c				1,600
	(160 shares of Rs 10 each re-issued for the sum of Rs 1,600)

	Share Forfeiture A/c	Dr.		320
	To Capital Reserve A/c				320
	(Balance in Share Forfeiture of 160 re-issued shares transferred to Capital Reserve)

As per the Revised Schedule VI of Companies Act, the 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	1,99,680
b. Reserves and Surplus	2	1,00,320
2. Non-Current Liabilities
3. Current Liabilities
Total		3,00,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	3,00,000
Total		3,00,000

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	…… Equity Shares of Rs 10 each		-
	Issued Share Capital
	20,000 Equity Shares of Rs 10 each		2,00,000
	Subscribed, Called-up and Paid-up Share Capital
	19,960 Equity Shares of Rs 10 each	1,99,600
	Add: Shares Forfeited (40 shares × Rs 2)	80	1,99,680

2	Reserves and Surplus
	Securities Premium	1,00,000
	Capital Reserve	320	1,00,320

3	Cash and Cash Equivalents
	Cash at Bank		3,00,000

Working Notes: 1. Share Forfeiture of Re-issued Shares

Share Forfeiture (at the time of forfeiture after deducting premium)	Cr.	2	(7 – 5)
Less: Share Forfeiture (at the time of re-issue)	Dr.	NIL
Balance in Share Forfeiture after re-issue	Cr.	2	per share

Capital Reserve = Balance in Share Forfeiture after reissue (per share) × Number of Shares Re-issued = Rs 2 × 160 = Rs 320

2. Calculation of balance remaining in Share Forfeiture Account (to be shown in the Balance Sheet)

Share Forfeiture (at the time of forfeiture of 200 shares)	=	400	Debit
Less: Share Forfeiture (at the time re-issue of 160 shares)	=	(320)	Credit
Balance in Share Forfeiture Account (for 40 shares* which are not re-issued*)	=	Rs 80	Debit

Question 80:

Issued and Applied 20,000 equity shares of Rs 10 each at a premium of Rs 5

Application	Rs	7	(2+5)
Allotment	Rs	5
First and Final Call	Rs	3
		15	(10+5) per share

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

	Bank A/c	Dr.		140,000
	To Equity Share Application A/c				140,000
	(Share application money received for 20,000 shares at Rs 7 each)

	Equity Share Application A/c	Dr.		1,40,000
	To Equity Share Capital A/c				40,000
	To Securities Premium A/c				1,00,000
	(Share application money of 20,000 shares transferred Share Capital at Rs25 per share and Securities Premium at Rs 5 per share)

	Equity Share Allotment A/c	Dr.		1,00,000
	To Equity Share Capital A/c				1,00,000
	(Share allotment due on 20,000 shares at Rs 5 each)

	Bank A/c	Dr.		99,000
	Calls-in-Arrears A/c	Dr.		1,000
	To Equity Share Allotment A/c				1,00,000
	(Share allotment received on 19,800 shares and a holder of 200 shares failed to pay it)

	Equity Share First and Final call A/c	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(First and final call due on 20,000 shares at Rs 3 each)

	Bank A/c	Dr.		59,400
	Calls-in-Arrears A/c	Dr.		600
	To Equity Share First and Final Call A/c				60,000
	(First and final call received on 19,800 shares and a holder of 200 shares failed to pay it)

	Equity Share Capital A/c	Dr.		2,000
	To Share Forfeiture A/c (Rs 2 × 200 Shares)				400
	To Calls-in-Arrears A/c				16,00
	(200 shares of Rs 10 each forfeited for the non-payment amount due Rs 8 per share)

	Bank A/c	Dr.		1,600
	To Equity Share Capital A/c				1,600
	(160 shares of Rs 10 each re-issued for the sum of Rs 1,600)

	Share Forfeiture A/c	Dr.		320
	To Capital Reserve A/c				320
	(Balance in Share Forfeiture of 160 re-issued shares transferred to Capital Reserve)

As per the Revised Schedule VI of Companies Act, the 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	1,99,680
b. Reserves and Surplus	2	1,00,320
2. Non-Current Liabilities
3. Current Liabilities
Total		3,00,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	3,00,000
Total		3,00,000

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	…… Equity Shares of Rs 10 each		-
	Issued Share Capital
	20,000 Equity Shares of Rs 10 each		2,00,000
	Subscribed, Called-up and Paid-up Share Capital
	19,960 Equity Shares of Rs 10 each	1,99,600
	Add: Shares Forfeited (40 shares × Rs 2)	80	1,99,680

2	Reserves and Surplus
	Securities Premium	1,00,000
	Capital Reserve	320	1,00,320

3	Cash and Cash Equivalents
	Cash at Bank		3,00,000

Working Notes: 1. Share Forfeiture of Re-issued Shares

Share Forfeiture (at the time of forfeiture after deducting premium)	Cr.	2	(7 – 5)
Less: Share Forfeiture (at the time of re-issue)	Dr.	NIL
Balance in Share Forfeiture after re-issue	Cr.	2	per share

Capital Reserve = Balance in Share Forfeiture after reissue (per share) × Number of Shares Re-issued = Rs 2 × 160 = Rs 320

2. Calculation of balance remaining in Share Forfeiture Account (to be shown in the Balance Sheet)

Share Forfeiture (at the time of forfeiture of 200 shares)	=	400	Debit
Less: Share Forfeiture (at the time re-issue of 160 shares)	=	(320)	Credit
Balance in Share Forfeiture Account (for 40 shares* which are not re-issued*)	=	Rs 80	Debit

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 Revised Schedule VI of Companies Act, the Company's Balance Sheet is presented as follows.

Kamal Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	1,63,000
b. Reserves and Surplus	2	6,500
2. Non-Current Liabilities
3. Current Liabilities
Total		1,69,500

II. Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets	3	1,00,000
2. Current Assets
a. Cash and Cash Equivalents	4	69,500
Total		1,69,500

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	2,000 Equity Shares of Rs 100 each		2,00,000
	Issued Share Capital
	2,000 Equity Shares of Rs 100 each		2,00,000
	Subscribed, Called-up and Paid-up Share Capital
	1,000 Equity Shares of Rs 100 each(for consideration other than cash)	1,00,000
	900 Equity Shares of Rs 100 each, Rs 70 Called-up	63,000	1,63,000

2	Reserves and Surplus
	Securities Premium	4,500
	Capital Reserve	2,000	6,500

3	Tangible Assets
	Building		1,00,000

4	Cash and Cash Equivalents
	Cash at Bank		69,500

Working Notes:

Share Forfeiture (at the time of forfeiture)	3,000	Credit
Less: Share Forfeiture (at the time of re-issue)	1,000	Debit
Balance in Share Forfeiture (after re-issue)	2,000	Credit

Capital Reserve = Balance in Share Forfeiture (after re-issue) = Rs 2,000

Question 81:

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 Revised Schedule VI of Companies Act, the Company's Balance Sheet is presented as follows.

Kamal Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	1,63,000
b. Reserves and Surplus	2	6,500
2. Non-Current Liabilities
3. Current Liabilities
Total		1,69,500

II. Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets	3	1,00,000
2. Current Assets
a. Cash and Cash Equivalents	4	69,500
Total		1,69,500

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	2,000 Equity Shares of Rs 100 each		2,00,000
	Issued Share Capital
	2,000 Equity Shares of Rs 100 each		2,00,000
	Subscribed, Called-up and Paid-up Share Capital
	1,000 Equity Shares of Rs 100 each(for consideration other than cash)	1,00,000
	900 Equity Shares of Rs 100 each, Rs 70 Called-up	63,000	1,63,000

2	Reserves and Surplus
	Securities Premium	4,500
	Capital Reserve	2,000	6,500

3	Tangible Assets
	Building		1,00,000

4	Cash and Cash Equivalents
	Cash at Bank		69,500

Working Notes:

Share Forfeiture (at the time of forfeiture)	3,000	Credit
Less: Share Forfeiture (at the time of re-issue)	1,000	Debit
Balance in Share Forfeiture (after re-issue)	2,000	Credit

Capital Reserve = Balance in Share Forfeiture (after re-issue) = Rs 2,000

Answer:

Authorised capital 20,000 shares of 10 each

Issued and applied 20,000 shares of Rs 10 each at a premium Rs 2

Payable as:

Application	=	Rs 5	(3+2)
Allotment	=	Rs 4
First and Final Call	=	Rs 3
		Rs 12	(10+2)

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

	Bank A/c	Dr.		1,00,000
	To Equity Share Application A/c				1,00,000
	(Share application money received for 20,000 shares at Rs 5 each)

	Equity Share Application A/c	Dr.		1,00,000
	To Equity Share Capital A/c				60,000
	To Securities Premium A/c				40,000
	(Share application of 20,000 shares transferred to Shares Capital at Rs 3 per share and Securities Premium and Rs 2 per share)

	Equity Share Allotment A/c	Dr.		80,000
	To Equity Share Capital A/c				80,000
	(Share allotment due on 20,000 shares at Rs 4 each)

	Bank A/c	Dr.		79,200
	Calls-in-Arrears A/c	Dr.		800
	To Equity Share Allotment A/c				80,000
	(Share allotment received on 19,800 shares and holders of 200 shares failed to pay it)

	Equity Share first and final call A/c	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(First and Final call due on 20,000 shares at Rs 3 each)

	Bank A/c	Dr.		58,500
	Calls-in-Arrears A/c	Dr.		1,500
	To Equity Share First And Final Call A/c				60,000
	(Share first and final call of Rs 3 each received on 19,500 shares and holders of 500 shares failed to pay it)

	Equity Share Capital A/c	Dr.		2,000
	To Share Forfeiture A/c				600
	To Calls-in-Arrears A/c				1,400
	(200 shares of Rs 10 each forfeited for the non-payment of allotment Rs 4 and call Rs 7 per share)

	Equity Share Capital A/c	Dr.		3,000
	To Share Forfeiture A/c				2,100
	To Calls-in-Arrears A/c				900
	(300 shares of Rs 10 each forfeited for the non-payment of call money Rs 3 per share)

	Bank A/c	Dr.		2,800
	Share Forfeiture A/c	Dr.		1,200
	To Share Capital				4,000
	(400 shares of Rs 10 each re-issued at Rs 7 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		800
	To Capital Reserve A/c				800
	(Balance in share forfeiture of 400 shares transferred to Capital Reserve)

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

Krishna & Co Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholdersâ€™ Funds
a. Share Capital	1	1,99,700
b. Reserves and Surplus	2	40,800
2. Non-Current Liabilities
3. Current Liabilities
Total		2,40,500

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	2,40,500
Total		2,40,500

NOTES TO ACCOUNTS


Note No.	Particulars			Amount (Rs)
1	Share Capital
	Authorised Share Capital
	20,000 Equity Shares of Rs 10 each			2,00,000
	Issued Share Capital
	20,000 Equity Shares of Rs 10 each			2,00,000
	Subscribed, Called-up and Paid-up Share Capital
	19,900 Equity Shares of Rs 10 each	1,99,000
	Add: Shares Forfeited (100 shares Ã— Rs 7)	700		1,99,700

2	Reserves and Surplus
	Securities Premium		40,000
	Capital Reserve		800	40,800

3	Cash and Cash Equivalents
	Cash at Bank			2,40,500

Working Notes:

1.	Capital Reserve of 200 shares on which only application received
	Share Forfeiture Cr.	3	per share (excluding premium)
	Share Forfeiture Dr.	3	per share
	Balance of Share Forfeiture	NIL

2.	Capital Reserve of 200 shares on which application and allotment received
	Share Forfeiture Cr.	Rs 7	per share (excluding premium)
	Share Forfeiture Dr.	Rs 3	per share
	Balance in Share Forfeiture	Rs 4	per share

Capital Reserve	=	200 Shares Ã— Balance of Share Forfeiture (per share)
	=	200 Ã— 4
	=	Rs 800

Question 82:

Authorised capital 20,000 shares of 10 each

Issued and applied 20,000 shares of Rs 10 each at a premium Rs 2

Payable as:

Application	=	Rs 5	(3+2)
Allotment	=	Rs 4
First and Final Call	=	Rs 3
		Rs 12	(10+2)

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

	Bank A/c	Dr.		1,00,000
	To Equity Share Application A/c				1,00,000
	(Share application money received for 20,000 shares at Rs 5 each)

	Equity Share Application A/c	Dr.		1,00,000
	To Equity Share Capital A/c				60,000
	To Securities Premium A/c				40,000
	(Share application of 20,000 shares transferred to Shares Capital at Rs 3 per share and Securities Premium and Rs 2 per share)

	Equity Share Allotment A/c	Dr.		80,000
	To Equity Share Capital A/c				80,000
	(Share allotment due on 20,000 shares at Rs 4 each)

	Bank A/c	Dr.		79,200
	Calls-in-Arrears A/c	Dr.		800
	To Equity Share Allotment A/c				80,000
	(Share allotment received on 19,800 shares and holders of 200 shares failed to pay it)

	Equity Share first and final call A/c	Dr.		60,000
	To Equity Share Capital A/c				60,000
	(First and Final call due on 20,000 shares at Rs 3 each)

	Bank A/c	Dr.		58,500
	Calls-in-Arrears A/c	Dr.		1,500
	To Equity Share First And Final Call A/c				60,000
	(Share first and final call of Rs 3 each received on 19,500 shares and holders of 500 shares failed to pay it)

	Equity Share Capital A/c	Dr.		2,000
	To Share Forfeiture A/c				600
	To Calls-in-Arrears A/c				1,400
	(200 shares of Rs 10 each forfeited for the non-payment of allotment Rs 4 and call Rs 7 per share)

	Equity Share Capital A/c	Dr.		3,000
	To Share Forfeiture A/c				2,100
	To Calls-in-Arrears A/c				900
	(300 shares of Rs 10 each forfeited for the non-payment of call money Rs 3 per share)

	Bank A/c	Dr.		2,800
	Share Forfeiture A/c	Dr.		1,200
	To Share Capital				4,000
	(400 shares of Rs 10 each re-issued at Rs 7 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		800
	To Capital Reserve A/c				800
	(Balance in share forfeiture of 400 shares transferred to Capital Reserve)

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

Krishna & Co Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholdersâ€™ Funds
a. Share Capital	1	1,99,700
b. Reserves and Surplus	2	40,800
2. Non-Current Liabilities
3. Current Liabilities
Total		2,40,500

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	2,40,500
Total		2,40,500

NOTES TO ACCOUNTS


Note No.	Particulars			Amount (Rs)
1	Share Capital
	Authorised Share Capital
	20,000 Equity Shares of Rs 10 each			2,00,000
	Issued Share Capital
	20,000 Equity Shares of Rs 10 each			2,00,000
	Subscribed, Called-up and Paid-up Share Capital
	19,900 Equity Shares of Rs 10 each	1,99,000
	Add: Shares Forfeited (100 shares Ã— Rs 7)	700		1,99,700

2	Reserves and Surplus
	Securities Premium		40,000
	Capital Reserve		800	40,800

3	Cash and Cash Equivalents
	Cash at Bank			2,40,500

Working Notes:

1.	Capital Reserve of 200 shares on which only application received
	Share Forfeiture Cr.	3	per share (excluding premium)
	Share Forfeiture Dr.	3	per share
	Balance of Share Forfeiture	NIL

2.	Capital Reserve of 200 shares on which application and allotment received
	Share Forfeiture Cr.	Rs 7	per share (excluding premium)
	Share Forfeiture Dr.	Rs 3	per share
	Balance in Share Forfeiture	Rs 4	per share

Capital Reserve	=	200 Shares Ã— Balance of Share Forfeiture (per share)
	=	200 Ã— 4
	=	Rs 800

Answer:

Allotment made as follows:

Applied		Allotted
10,000	â€“	NIL
15,000	â€“	10,000
10,000	â€“	10,000
35,000		20,000

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Equity Share Application A/c	Dr.		5,00,000
	To Equity Share Capital A/c				4,00,000
	To Equity Share Allotment A/c				1,00,000
	(Share application money of 20,000 shares at Rs 20 each transferred to Share Capital and Rs 1,00,000 adjusted on allotment)

	Equity Share Allotment A/c	Dr.		8,00,000
	To Equity Share Capital A/c				6,00,000
	To Securities Premium A/c				2,00,000
	(Share allotment due on 20,000 shares at Rs 40 each including premium Rs 10)

	Equity Share First Call A/c	Dr.		5,00,000
	To Equity Share Capital A/c				5,00,000
	(First call due on 20,000 at Rs 25 each)

	Calls-in-Arrears A/c	Dr.		12,500
	To Equity Share First Call A/c				12,500
	(First call money of 500 shares at Rs 25 each transferred to Calls-in-Arrears Account on account of non-payment)

	Equity Share Final Call A/c	Dr.		5,00,000
	To Equity Share Capital A/c				5,00,000
	(Share Final call due on 20,000 shares at Rs 25 each)

	Calls-in-Arrears A/c	Dr.		12,500
	To Equity Share Final Call A/c				12,500
	(Final call money of 500 shares at Rs 25 each transferred to Calls-in-Arrears Account on account of non-payment)

	Equity Share Capital A/c	Dr.		50,000
	To Share Forfeiture A/c				25,000
	To Calls-in-Arrears A/c				25,000
	(500 shares of Rs 100 each forfeited for non-payment of Rs 50 per share)

	Share Forfeiture A/c	Dr.		4,000
	To Equity Share capital A/c				4,000
	(Loss on re-issue of 200 shares charged from Shares Forfeiture Account)

	Share Forfeiture A/c	Dr.		6,000
	To Capital Reserve A/c				6,000
	(Balance of 200 shares re-issued in Share Forfeiture Account transferred to Capital Reserve)

	Share Issue Expenses A/c Dr.			10,000
	To Bank A/c				10,000
	(Share issue expenses paid)

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

	Equity Share App.		7,00,000		Equity Share App.		2,00,000
	Equity Share Allotment		7,00,000		Share Issue Expenses A/c		10,000
	Equity Share First Call		4,87,500
	Equity Share Final Call		4,87,500
	Equity Share Capital		16,000		Balance c/d		21,81,000
			23,91,000				23,91,000

Posting in the Company's Balance Sheet

Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholdersâ€™ Funds
a. Share Capital	1	19,85,000
b. Reserves and Surplus	2	2,06,000
2. Non-Current Liabilities
Long-term Borrowings
3. Current Liabilities
Other Current Liabilities
Short-term Provisions
Total		21,91,000

II Assets
1. Non-Current Assets
Fixed Assets
Tangible Assets
Non-Current Investments
c. Other Non-Current Assets
Unamortised Share Issue Expenses	3	10,000
2. Current Assets
Inventories
Trade Receivables
Cash and Cash Equivalents	4	21,81,000
Short-term Loans and Advances
Total		21,91,000

NOTES TO ACCOUNTS
Note No.	Particulars			Amount (Rs)
1	Share Capital
	Authorised Share Capital
	â€¦... equity shares of Rs 100 each			-
	Issued Share Capital
	20,000 equity shares of Rs 100 each			20,00,000
	Subscribed, Called up and Paid up Share Capital
	19,700 equity Shares of Rs 100 each	19,70,000
	Add: Shares Forfeited (300 shares x Rs 50)	15,000		19,85,000
				19,85,000
2	Reserves and Surplus
	Securities Premium		2,00,000
	Capital Reserve		6,000	2,06,000
				21,91,000

3	Other Non-Current Assets
	Unamortised Share Issue Expenses			10,000
4	Cash and Cash Equivalents
	Cash at Bank			21,81,000
				21,91,000

Working Notes:

1. Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	Rs 50	per share (excluding premium)
Less: Share Forfeiture	Dr.	Rs 20	per share
Balance in Share Forfeiture		Rs 30	per share

Capital Reserve	=	Balance in Share Forfeiture (per share) Ã— Number of shares re-issued
	=	Rs 30 Ã— 200
	=	Rs 600

Question 83:

Allotment made as follows:

Applied		Allotted
10,000	â€“	NIL
15,000	â€“	10,000
10,000	â€“	10,000
35,000		20,000

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Equity Share Application A/c	Dr.		5,00,000
	To Equity Share Capital A/c				4,00,000
	To Equity Share Allotment A/c				1,00,000
	(Share application money of 20,000 shares at Rs 20 each transferred to Share Capital and Rs 1,00,000 adjusted on allotment)

	Equity Share Allotment A/c	Dr.		8,00,000
	To Equity Share Capital A/c				6,00,000
	To Securities Premium A/c				2,00,000
	(Share allotment due on 20,000 shares at Rs 40 each including premium Rs 10)

	Equity Share First Call A/c	Dr.		5,00,000
	To Equity Share Capital A/c				5,00,000
	(First call due on 20,000 at Rs 25 each)

	Calls-in-Arrears A/c	Dr.		12,500
	To Equity Share First Call A/c				12,500
	(First call money of 500 shares at Rs 25 each transferred to Calls-in-Arrears Account on account of non-payment)

	Equity Share Final Call A/c	Dr.		5,00,000
	To Equity Share Capital A/c				5,00,000
	(Share Final call due on 20,000 shares at Rs 25 each)

	Calls-in-Arrears A/c	Dr.		12,500
	To Equity Share Final Call A/c				12,500
	(Final call money of 500 shares at Rs 25 each transferred to Calls-in-Arrears Account on account of non-payment)

	Equity Share Capital A/c	Dr.		50,000
	To Share Forfeiture A/c				25,000
	To Calls-in-Arrears A/c				25,000
	(500 shares of Rs 100 each forfeited for non-payment of Rs 50 per share)

	Share Forfeiture A/c	Dr.		4,000
	To Equity Share capital A/c				4,000
	(Loss on re-issue of 200 shares charged from Shares Forfeiture Account)

	Share Forfeiture A/c	Dr.		6,000
	To Capital Reserve A/c				6,000
	(Balance of 200 shares re-issued in Share Forfeiture Account transferred to Capital Reserve)

	Share Issue Expenses A/c Dr.			10,000
	To Bank A/c				10,000
	(Share issue expenses paid)

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

	Equity Share App.		7,00,000		Equity Share App.		2,00,000
	Equity Share Allotment		7,00,000		Share Issue Expenses A/c		10,000
	Equity Share First Call		4,87,500
	Equity Share Final Call		4,87,500
	Equity Share Capital		16,000		Balance c/d		21,81,000
			23,91,000				23,91,000

Posting in the Company's Balance Sheet

Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholdersâ€™ Funds
a. Share Capital	1	19,85,000
b. Reserves and Surplus	2	2,06,000
2. Non-Current Liabilities
Long-term Borrowings
3. Current Liabilities
Other Current Liabilities
Short-term Provisions
Total		21,91,000

II Assets
1. Non-Current Assets
Fixed Assets
Tangible Assets
Non-Current Investments
c. Other Non-Current Assets
Unamortised Share Issue Expenses	3	10,000
2. Current Assets
Inventories
Trade Receivables
Cash and Cash Equivalents	4	21,81,000
Short-term Loans and Advances
Total		21,91,000

NOTES TO ACCOUNTS
Note No.	Particulars			Amount (Rs)
1	Share Capital
	Authorised Share Capital
	â€¦... equity shares of Rs 100 each			-
	Issued Share Capital
	20,000 equity shares of Rs 100 each			20,00,000
	Subscribed, Called up and Paid up Share Capital
	19,700 equity Shares of Rs 100 each	19,70,000
	Add: Shares Forfeited (300 shares x Rs 50)	15,000		19,85,000
				19,85,000
2	Reserves and Surplus
	Securities Premium		2,00,000
	Capital Reserve		6,000	2,06,000
				21,91,000

3	Other Non-Current Assets
	Unamortised Share Issue Expenses			10,000
4	Cash and Cash Equivalents
	Cash at Bank			21,81,000
				21,91,000

Working Notes:

1. Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	Rs 50	per share (excluding premium)
Less: Share Forfeiture	Dr.	Rs 20	per share
Balance in Share Forfeiture		Rs 30	per share

Capital Reserve	=	Balance in Share Forfeiture (per share) Ã— Number of shares re-issued
	=	Rs 30 Ã— 200
	=	Rs 600

Answer:

In the Books of Gupta Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		2,70,000
	To Equity Share Application A/c				2,70,000
	(Share Application money received for 27,000 shares at Rs 10 per share)

	Equity Share Application A/c	Dr.		2,70,000
	To Equity Share Capital A/c (27,000 shares × 2)				54,000
	To Securities Premium A/c (27,000 shares × 8)				2,16,000
	(Share Application money adjusted)

	Equity Share Allotment A/c (27,000 shares × 12)	Dr.		3,24,000
	To Equity Share Capital A/c (27,000 shares × 3)				81,000
	To Securities Premium A/c (27,000 shares × 9)				2,43,000
	(Share Allotment money due on 27,000 shares at Rs 12 each including Rs 9 premium)

	Bank A/c	Dr.		2,88,000
	To Equity Share Allotment A/c				2,88,000
	(Share Allotment money received on 24,000 shares)

	Equity Share First and Final Call A/c (27,000 shares × 18)	Dr.		4,86,000
	To Equity Share Capital A/c (27,000 shares × 5)				1,35,000
	To Securities Premium A/c (27,000 shares × 13)				3,51,000
	(Share First and Final Call money due)

	Bank A/c	Dr.		3,96,000
	To Equity Share First and Final Call A/c				3,96,000
	(Share Final Call money received on all shares except 5,000 shares)

	Equity Share Capital A/c (5,000 shares × 10)	Dr.		50,000
	Securities Premium A/c (66,000 + 26,000)	Dr.		92,000
	To Equity Share Forfeiture A/c				16,000
	To Equity Share Allotment A/c (3,000 shares × 12)				36,000
	To Equity Share First and Final Call A/c (5,000 shares × 18)				90,000
	(5,000 shares of Rs 10 each forfeited for the non-payment of allotment on 3,000 shares and final call on 5,000 shares)

	Bank A/c	Dr.		68,000
	To Equity Share Capital A/c				40,000
	To Securities Premium A/c				28,000
	(4,000 shares re-issued at a premium of Rs 17)

	Equity Share Forfeiture A/c	Dr.		14,000
	To Capital Reserve A/c				14,000
	(Profits on re-issue transferred to Capital Reserve)

Working Notes:

WN1 Computation of Amount Unpaid on Shares

i) Shares of Shiva

ii) Shares of Girdhar

WN2 Computation of Amount forfeited:

i) Shiva

Amount Forfeited = Application

= 3,000×2 = 6,000

ii) Girdhar

Amount Forfeited = Application + Allotment

= (2,000×2) + (2,000×3) = 10,000

Total Amount Forfeited = 6,0000 + 10,000 = 16,000

WN3 Computation of Capital Reserve:

∴ Capital Reserve = 4,000 + 10,000 = Rs 14,000

Question 84:

In the Books of Gupta Ltd. Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c	Dr.		2,70,000
	To Equity Share Application A/c				2,70,000
	(Share Application money received for 27,000 shares at Rs 10 per share)

	Equity Share Application A/c	Dr.		2,70,000
	To Equity Share Capital A/c (27,000 shares × 2)				54,000
	To Securities Premium A/c (27,000 shares × 8)				2,16,000
	(Share Application money adjusted)

	Equity Share Allotment A/c (27,000 shares × 12)	Dr.		3,24,000
	To Equity Share Capital A/c (27,000 shares × 3)				81,000
	To Securities Premium A/c (27,000 shares × 9)				2,43,000
	(Share Allotment money due on 27,000 shares at Rs 12 each including Rs 9 premium)

	Bank A/c	Dr.		2,88,000
	To Equity Share Allotment A/c				2,88,000
	(Share Allotment money received on 24,000 shares)

	Equity Share First and Final Call A/c (27,000 shares × 18)	Dr.		4,86,000
	To Equity Share Capital A/c (27,000 shares × 5)				1,35,000
	To Securities Premium A/c (27,000 shares × 13)				3,51,000
	(Share First and Final Call money due)

	Bank A/c	Dr.		3,96,000
	To Equity Share First and Final Call A/c				3,96,000
	(Share Final Call money received on all shares except 5,000 shares)

	Equity Share Capital A/c (5,000 shares × 10)	Dr.		50,000
	Securities Premium A/c (66,000 + 26,000)	Dr.		92,000
	To Equity Share Forfeiture A/c				16,000
	To Equity Share Allotment A/c (3,000 shares × 12)				36,000
	To Equity Share First and Final Call A/c (5,000 shares × 18)				90,000
	(5,000 shares of Rs 10 each forfeited for the non-payment of allotment on 3,000 shares and final call on 5,000 shares)

	Bank A/c	Dr.		68,000
	To Equity Share Capital A/c				40,000
	To Securities Premium A/c				28,000
	(4,000 shares re-issued at a premium of Rs 17)

	Equity Share Forfeiture A/c	Dr.		14,000
	To Capital Reserve A/c				14,000
	(Profits on re-issue transferred to Capital Reserve)

Working Notes:

WN1 Computation of Amount Unpaid on Shares

i) Shares of Shiva

ii) Shares of Girdhar

WN2 Computation of Amount forfeited:

i) Shiva

Amount Forfeited = Application

= 3,000×2 = 6,000

ii) Girdhar

Amount Forfeited = Application + Allotment

= (2,000×2) + (2,000×3) = 10,000

Total Amount Forfeited = 6,0000 + 10,000 = 16,000

WN3 Computation of Capital Reserve:

∴ Capital Reserve = 4,000 + 10,000 = Rs 14,000

Answer:

Issued and applied 30,000 equity shares of Rs 50 each at a discount of Rs 5

Application	Rs	10
Allotment	Rs	20	(25–5)
First and Final Call	Rs	15	balance
	Rs	45	(50–5)

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

	Equity Share Application A/c	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(Share application money of 30,000 shares at Rs 10 per share transferred to Share Capital)

	Equity Share Allotment A/c	Dr.		6,00,000
	Discount on Issue of Shares A/c	Dr.		1,50,000
	To Equity Share Capital A/c				7,50,000
	(Share allotment due on 30,000 shares at Rs 20 each excluding discount Rs 5)

	Equity Share First and Final Call A/c	Dr.		4,50,000
	To Equity Share Capital A/c				4,50,000
	(First and final call due on 30,000 shares at Rs 15 each)

	Calls-In-Arrears A/c	Dr.		6,000
	To Equity Share First and Final Call Ac/				6,000
	(Final call money of 400 shares transferred to Calls-in-Arrears Account due to non-payment)

	Equity Share Capital A/c	Dr.		20,000
	To Share Forfeiture A/c				12,000
	To Discount on Issue of Shares A/c				2,000
	To Calls-in-Arrears A/c				6,000
	(400 shares of Rs 50 which had issued at discount of Rs 5, forfeited for non-payment of first and final call Rs 15 per share)

	Share Forfeiture A/c	Dr.		3,000
	Discount on Issued of Shares A/c	Dr.		1,500
	To Equity Share Capital A/c				4,500
	(300 of the forfeited shares re-issued at loss Rs 15 per share)

	Share Forfeiture A/c	Dr.		6,000
	To Capital Reserve A/c				6,000
	(Balance in share forfeiture of re-issued shares transferred to capital reserve)

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

	Equity Share Application	3,00,000
	Equity Share Allotment	6,00,000
	Equity Share First and Final Call	4,44,000
	Equity Share Capital	10,500		Balance c/d	13,54,500
		13,54,500			13,54,500

Working Notes-

1. Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	Rs 30	per share (application and allotment)
Less: Share Forfeiture	Dr.	Rs 10	per share (excluding the amount of discount Rs 5 from the loss on re-issue Rs 15)
Balance in Share Forfeiture		Rs 20	per share

Capital Reserve	=	Balance in Share Forfeiture (per share) × Number of shares re-issued
	=	Rs 20 × 300
	=	Rs 6,000

Question 85:

Issued and applied 30,000 equity shares of Rs 50 each at a discount of Rs 5

Application	Rs	10
Allotment	Rs	20	(25–5)
First and Final Call	Rs	15	balance
	Rs	45	(50–5)

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

	Equity Share Application A/c	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(Share application money of 30,000 shares at Rs 10 per share transferred to Share Capital)

	Equity Share Allotment A/c	Dr.		6,00,000
	Discount on Issue of Shares A/c	Dr.		1,50,000
	To Equity Share Capital A/c				7,50,000
	(Share allotment due on 30,000 shares at Rs 20 each excluding discount Rs 5)

	Equity Share First and Final Call A/c	Dr.		4,50,000
	To Equity Share Capital A/c				4,50,000
	(First and final call due on 30,000 shares at Rs 15 each)

	Calls-In-Arrears A/c	Dr.		6,000
	To Equity Share First and Final Call Ac/				6,000
	(Final call money of 400 shares transferred to Calls-in-Arrears Account due to non-payment)

	Equity Share Capital A/c	Dr.		20,000
	To Share Forfeiture A/c				12,000
	To Discount on Issue of Shares A/c				2,000
	To Calls-in-Arrears A/c				6,000
	(400 shares of Rs 50 which had issued at discount of Rs 5, forfeited for non-payment of first and final call Rs 15 per share)

	Share Forfeiture A/c	Dr.		3,000
	Discount on Issued of Shares A/c	Dr.		1,500
	To Equity Share Capital A/c				4,500
	(300 of the forfeited shares re-issued at loss Rs 15 per share)

	Share Forfeiture A/c	Dr.		6,000
	To Capital Reserve A/c				6,000
	(Balance in share forfeiture of re-issued shares transferred to capital reserve)

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

	Equity Share Application	3,00,000
	Equity Share Allotment	6,00,000
	Equity Share First and Final Call	4,44,000
	Equity Share Capital	10,500		Balance c/d	13,54,500
		13,54,500			13,54,500

Working Notes-

1. Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	Rs 30	per share (application and allotment)
Less: Share Forfeiture	Dr.	Rs 10	per share (excluding the amount of discount Rs 5 from the loss on re-issue Rs 15)
Balance in Share Forfeiture		Rs 20	per share

Capital Reserve	=	Balance in Share Forfeiture (per share) × Number of shares re-issued
	=	Rs 20 × 300
	=	Rs 6,000

Answer:

Issued 1,00,000 shares of Rs 10 each at Rs 0.60 per share

Applied 90,000 shares

Application	Rs	2.50	per share
Allotment	Rs	3.40	(4 – 0.60) per share
First and Final Call	Rs	3.50
		9.40	(10 – 0.60) per share

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

	Share Application		2,25,000
	Share Allotment		3,06,000
	Share First and Final Call		3,11,500
	Share Capital		4,500		Balance c/d		8,47,000
			8,47,000				8,47,000

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

	Share Application A/c	Dr.		2,25,000
	To Equity Share Capital A/c				2,25,000
	(Share application of 90,000 shares at Rs 2.5 each transferred to Share Capital)

	Share Allotment A/c	Dr.		3,06,000
	Discount on Issue of shares A/c	Dr.		54,000
	To Share Capital A/c				3,60,000
	(Share allotment due on 90,000 shares at Rs 3.40 each excluding discount Rs 0.60)

	Share First and Final call A/c	Dr.		3,15,000
	To Share Capital				3,15,000
	(First and final call due on 90,000 shares at Rs 3.5 each)

	Calls-in-Arrears A/c	Dr.		3,500
	To Share First and Final Call A/c				3,500
	(First and final call of 1,000 shares at Rs 3.5 per share transferred to Calls-in-Arrears Account due to non-payment)

	Share Capital A/c	Dr.		10,000
	To Share Forfeiture A/c				5,900
	To Discount Issue of Shares A/c				600
	To Calls-in-Arrears A/c				3,500
	(1,000 shares of Rs 10 each which had issued at discount Rs 0.60, forfeited for the non-payment of first and final call Rs 3.5)

	Share Forfeiture A/c	Dr.		200
	Discount on Issue of Shares A/c	Dr.		300
	To Share Capital A/c				500
	(500 shares of Rs 10 each re-issued at loss of Re 1, Rs 0.60 of the loss treated as discount)

	Share Forfeiture A/c	Dr.		2,750
	To Capital Reserve A/c				2,750
	(Balance in Share Forfeiture of 500 re-issued shares transferred to Capital Reserve)

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

P Limited
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	8,97,950
b. Reserves and Surplus	2	(7,990)
2. Non-Current Liabilities
3. Current Liabilities
Total		8,89,960

II. Assets
1. Non-Current Assets
a. Other Non-Current Assets	3	32,220

2. Current Assets	4	8,57,740
Total		8,89,960

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	……. shares of Rs 10 each		-
	Issued Share Capital
	1,00,000 shares of Rs 10 each		10,00,000
	Subscribed, Called-up and Paid-up Share Capital
	89,500 shares of Rs 10 each	8,95,000
	Add: Shares Forfeited (500 shares × Rs 5.9)	2,950	8,97,950

2	Reserves and Surplus
	Capital Reserve		2,750
	Statement of Profit & Loss		(10,740)
			(7,990)

3	Other Non-Current Assets
	Unamortised Discount on Issue of Shares		32,220

4	Cash and Cash Equivalents
	Cash at Bank		8,47,000
	Unamortised Discount on Issue of Shares		10,740
			8,57,740

Working Notes:

Share Forfeiture of re-issued shares
Share Forfeiture Credit	5.9	per share
Share Forfeiture Debit	0.4	per share (excluding discount Rs 0.40)
Balance in Share Forfeiture after re-issue	5.5	per share

Capital Reserve	= Balance in share forfeiture after re-issue × No. of shares re-issued
	= 5.5 × 500
	= Rs 2,750

Important points to remember:

Discount on Issue of Shares can be written off against Securities Premium or Statement of Profit & Loss within 3 or 5 years.
In the above solution, the Discount is written off in 5 years i.e. Rs 10,740 [53,700 / 5] for each year and is shown as a negative balance in the Reserves and Surplus. The balance of Discount i.e. 42,960 [53,700 – 10,740] is bifurcated as Current and Non-Current Assets.
The answer given in the book is different from that of ours' as the amount of discount has been written-off as per the Revised Schedule VI of Companies Accounts.

Question 86:

Issued 1,00,000 shares of Rs 10 each at Rs 0.60 per share

Applied 90,000 shares

Application	Rs	2.50	per share
Allotment	Rs	3.40	(4 – 0.60) per share
First and Final Call	Rs	3.50
		9.40	(10 – 0.60) per share

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

	Share Application		2,25,000
	Share Allotment		3,06,000
	Share First and Final Call		3,11,500
	Share Capital		4,500		Balance c/d		8,47,000
			8,47,000				8,47,000

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

	Share Application A/c	Dr.		2,25,000
	To Equity Share Capital A/c				2,25,000
	(Share application of 90,000 shares at Rs 2.5 each transferred to Share Capital)

	Share Allotment A/c	Dr.		3,06,000
	Discount on Issue of shares A/c	Dr.		54,000
	To Share Capital A/c				3,60,000
	(Share allotment due on 90,000 shares at Rs 3.40 each excluding discount Rs 0.60)

	Share First and Final call A/c	Dr.		3,15,000
	To Share Capital				3,15,000
	(First and final call due on 90,000 shares at Rs 3.5 each)

	Calls-in-Arrears A/c	Dr.		3,500
	To Share First and Final Call A/c				3,500
	(First and final call of 1,000 shares at Rs 3.5 per share transferred to Calls-in-Arrears Account due to non-payment)

	Share Capital A/c	Dr.		10,000
	To Share Forfeiture A/c				5,900
	To Discount Issue of Shares A/c				600
	To Calls-in-Arrears A/c				3,500
	(1,000 shares of Rs 10 each which had issued at discount Rs 0.60, forfeited for the non-payment of first and final call Rs 3.5)

	Share Forfeiture A/c	Dr.		200
	Discount on Issue of Shares A/c	Dr.		300
	To Share Capital A/c				500
	(500 shares of Rs 10 each re-issued at loss of Re 1, Rs 0.60 of the loss treated as discount)

	Share Forfeiture A/c	Dr.		2,750
	To Capital Reserve A/c				2,750
	(Balance in Share Forfeiture of 500 re-issued shares transferred to Capital Reserve)

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

P Limited
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	8,97,950
b. Reserves and Surplus	2	(7,990)
2. Non-Current Liabilities
3. Current Liabilities
Total		8,89,960

II. Assets
1. Non-Current Assets
a. Other Non-Current Assets	3	32,220

2. Current Assets	4	8,57,740
Total		8,89,960

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	……. shares of Rs 10 each		-
	Issued Share Capital
	1,00,000 shares of Rs 10 each		10,00,000
	Subscribed, Called-up and Paid-up Share Capital
	89,500 shares of Rs 10 each	8,95,000
	Add: Shares Forfeited (500 shares × Rs 5.9)	2,950	8,97,950

2	Reserves and Surplus
	Capital Reserve		2,750
	Statement of Profit & Loss		(10,740)
			(7,990)

3	Other Non-Current Assets
	Unamortised Discount on Issue of Shares		32,220

4	Cash and Cash Equivalents
	Cash at Bank		8,47,000
	Unamortised Discount on Issue of Shares		10,740
			8,57,740

Working Notes:

Share Forfeiture of re-issued shares
Share Forfeiture Credit	5.9	per share
Share Forfeiture Debit	0.4	per share (excluding discount Rs 0.40)
Balance in Share Forfeiture after re-issue	5.5	per share

Capital Reserve	= Balance in share forfeiture after re-issue × No. of shares re-issued
	= 5.5 × 500
	= Rs 2,750

Important points to remember:

Discount on Issue of Shares can be written off against Securities Premium or Statement of Profit & Loss within 3 or 5 years.
In the above solution, the Discount is written off in 5 years i.e. Rs 10,740 [53,700 / 5] for each year and is shown as a negative balance in the Reserves and Surplus. The balance of Discount i.e. 42,960 [53,700 – 10,740] is bifurcated as Current and Non-Current Assets.
The answer given in the book is different from that of ours' as the amount of discount has been written-off as per the Revised Schedule VI of Companies Accounts.

Answer:

Issued 20,000 shares of Rs 100 each at a discount of Rs 5

Applied 18,000 shares

Payable as:

Application	Rs	25	per share
Allotment	Rs	50	(55–5) per share
First and Final Call	Rs	20	per share
	Rs	95	(100 – 5) per share

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

	Bank A/c	Dr.		4,50,000
	To Share Application A/c				4,50,000
	(Share application received for 18,000 shares at Rs 25 each)

	Share Application A/c	Dr.		4,50,000
	To Share Capital A/c				4,50,000
	(Share application money of 18,000 shares at Rs 25 each transferred to Share Capital)

	Share Allotment A/c	Dr.		9,00,000
	Discount on Issue of Shares A/c	Dr.		90,000
	To Share Capital A/c				9,90,000
	(Share allotment due on 18,000 shares at Rs 50 each excluding discount Rs 5)

	Bank A/c	Dr.		8,85,000
	Calls-in-Arrears A/c	Dr.		15,000
	To Share Allotment A/c				9,00,000
	(Allotment received on 17,700 shares and holders of 300 shares failed to pay)

	Share First and Final Call A/c	Dr.		3,60,000
	To Share Capital A/c				3,60,000
	(First and final call due on 18,000 shares at Rs 20 per share)

	Bank A/c	Dr.		3,54,000
	Calls-in-Arrears A/c	Dr.		6,000
	To Share First and Final Call A/c				3,60,000
	(First and final call of Rs 20 each received on 17,700 shares and holder of Rs 300 shares failed to pay it)

	Share Capital A/c	Dr.		30,000
	To Share Forfeiture A/c				7,500
	To Discount on Issue of Shares A/c				1,500
	To Calls-in-Arrears A/c				21,000
	(300 shares of Rs 100 each which had issued at discount, forfeited for the non-payment of Rs 70 per share)

	Bank A/c	Dr.		15,000
	Discount on Issued of Shares A/c	Dr.		1,000
	Share Forfeiture A/c	Dr.		4,000
	To Share Capital A/c				20,000
	(200 shares of Rs 100 each re-issued at Rs 75 as fully paid-up)

	Share Forfeiture A/c	Dr.		1,000
	To Capital Reserve				1,000
	(Balance in share forfeiture of 200 re-issued shares, transferred to capital reserve)

Working Notes:

Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	25	per share
Share Forfeiture	Dr.	20	per share (excluding discount Rs 5 from the loss Rs 25)
Balance in Share Forfeiture	Cr.	5	per share

Capital Reserve = Balance in share forfeiture after re-issue (per share) × no of share re-issued

= Re 5 × 200 shares

=Rs 1,000

Question 87:

Issued 20,000 shares of Rs 100 each at a discount of Rs 5

Applied 18,000 shares

Payable as:

Application	Rs	25	per share
Allotment	Rs	50	(55–5) per share
First and Final Call	Rs	20	per share
	Rs	95	(100 – 5) per share

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

	Bank A/c	Dr.		4,50,000
	To Share Application A/c				4,50,000
	(Share application received for 18,000 shares at Rs 25 each)

	Share Application A/c	Dr.		4,50,000
	To Share Capital A/c				4,50,000
	(Share application money of 18,000 shares at Rs 25 each transferred to Share Capital)

	Share Allotment A/c	Dr.		9,00,000
	Discount on Issue of Shares A/c	Dr.		90,000
	To Share Capital A/c				9,90,000
	(Share allotment due on 18,000 shares at Rs 50 each excluding discount Rs 5)

	Bank A/c	Dr.		8,85,000
	Calls-in-Arrears A/c	Dr.		15,000
	To Share Allotment A/c				9,00,000
	(Allotment received on 17,700 shares and holders of 300 shares failed to pay)

	Share First and Final Call A/c	Dr.		3,60,000
	To Share Capital A/c				3,60,000
	(First and final call due on 18,000 shares at Rs 20 per share)

	Bank A/c	Dr.		3,54,000
	Calls-in-Arrears A/c	Dr.		6,000
	To Share First and Final Call A/c				3,60,000
	(First and final call of Rs 20 each received on 17,700 shares and holder of Rs 300 shares failed to pay it)

	Share Capital A/c	Dr.		30,000
	To Share Forfeiture A/c				7,500
	To Discount on Issue of Shares A/c				1,500
	To Calls-in-Arrears A/c				21,000
	(300 shares of Rs 100 each which had issued at discount, forfeited for the non-payment of Rs 70 per share)

	Bank A/c	Dr.		15,000
	Discount on Issued of Shares A/c	Dr.		1,000
	Share Forfeiture A/c	Dr.		4,000
	To Share Capital A/c				20,000
	(200 shares of Rs 100 each re-issued at Rs 75 as fully paid-up)

	Share Forfeiture A/c	Dr.		1,000
	To Capital Reserve				1,000
	(Balance in share forfeiture of 200 re-issued shares, transferred to capital reserve)

Working Notes:

Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	25	per share
Share Forfeiture	Dr.	20	per share (excluding discount Rs 5 from the loss Rs 25)
Balance in Share Forfeiture	Cr.	5	per share

Capital Reserve = Balance in share forfeiture after re-issue (per share) × no of share re-issued

= Re 5 × 200 shares

=Rs 1,000

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 × Rs2)				200
		To Discount on Issue of Shares A/c				100
		To Calls-in-Arrears A/c				700
		(100 shares of Rs 10 each which had issued at discount Re 1, forfeited for non- payment of Rs 7)

		Bank A/c	Dr.		480
		Discount on Issue of Shares A/c	Dr.		80
		Share Forfeiture A/c (80 × Re 1)	Dr.		80
		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)

		Share Forfeiture A/c	Dr.		80
		To Capital Reserve A/c				80
		(Share Forfeiture of 80 shares at Re 1 transferred Capital Reserve)

Working Note-

Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	Rs 2	per share
Share Forfeiture (Loss)	Dr.	Re 1	per share (excluding discount Re 1)
Balance in share forfeiture after re-issue	Cr.	Re 1	per share

Capital Reserve = Balance in Share Forfeiture after re-issue × No. of shares re-issued

= Re 1 × 80 shares

= Rs 80

(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 88:

(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 × Rs2)				200
		To Discount on Issue of Shares A/c				100
		To Calls-in-Arrears A/c				700
		(100 shares of Rs 10 each which had issued at discount Re 1, forfeited for non- payment of Rs 7)

		Bank A/c	Dr.		480
		Discount on Issue of Shares A/c	Dr.		80
		Share Forfeiture A/c (80 × Re 1)	Dr.		80
		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)

		Share Forfeiture A/c	Dr.		80
		To Capital Reserve A/c				80
		(Share Forfeiture of 80 shares at Re 1 transferred Capital Reserve)

Working Note-

Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	Rs 2	per share
Share Forfeiture (Loss)	Dr.	Re 1	per share (excluding discount Re 1)
Balance in share forfeiture after re-issue	Cr.	Re 1	per share

Capital Reserve = Balance in Share Forfeiture after re-issue × No. of shares re-issued

= Re 1 × 80 shares

= Rs 80

(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:

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

		Share Capital	Dr.		2,400
		To Share Forfeiture A/c				1,500
		To Calls-in-Arrears A/c				900
		(300 shares of Rs 10 each on which had called Rs 8, forfeited for non-payment of second call Rs 3 per share)

		Bank A/c	Dr.		3,000
		To Share Capital A/c				3,000
		(300 shares of Rs 10 each re-issued)

		Share Forfeiture A/c	Dr.		1,500
		To Capital Reserve A/c				1,500
		(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve)

Working Notes-

Share Forfeiture Credit (at the time of forfeiture of shares)	1,500
Less: Share Forfeiture Debit (at the time of re-issue shares)	NIL
Balance in Share Forfeiture after re-issue of shares	1,500

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

= Rs 1,500

(ii)	Books of Y Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Share Capital A/c	Dr.		4,000
	To Share Forfeiture A/c				2,400
	To Calls-in-Arrears A/c				1,600
	(400 shares of Rs 10 forfeited for the non-payment of final call Rs 4 per share)

	Bank A/c	Dr.		4,800
	To Share Capital A/c				4,000
	To Securities Premium A/c				800
	(400 shares of 10 each re-issued at Rs 12 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		2,400
	To Capital Reserve A/c				2,400
	(Balance of Share Forfeiture after re-issue transferred to Capital Reserve)

Working Notes-

Share Forfeiture Credit (at the time of forfeiture of shares)	2,400
Less: Share Forfeiture Debit (at the time of re-issue shares)	NIL
Balance in Share Forfeiture after re-issue of shares	2,400

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

= Rs 2,400

(iii)	Books of Z Limited Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Share Capital A/c	Dr.		2,500
		To Share Forfeiture A/c (250×3)				750
		To Calls-in-Arrears A/c				1,750
		(250 shares of Rs 10 each forfeited for the non-payment Rs 7 per share)

		Bank A/c	Dr.		2,000
		Share Forfeiture A/c	Dr.		500
		To Share Capital A/c				2,500
		(250 shares of Rs 10 each re-issued for Rs 8 per share as fully paid-up )

		Share Forfeiture A/c	Dr.		250
		To Capital Reserve A/c				250
		(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve)

Working Notes-

Share Forfeiture Credit (at the time of forfeiture of shares)	750
Less: Share Forfeiture Debit (at the time of re-issue shares)	500
Balance in Share Forfeiture after re-issue of shares	250

Capital Reserve = Balance in Share Forfeiture of re-issued shares = Rs 250

Question 89:

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

		Share Capital	Dr.		2,400
		To Share Forfeiture A/c				1,500
		To Calls-in-Arrears A/c				900
		(300 shares of Rs 10 each on which had called Rs 8, forfeited for non-payment of second call Rs 3 per share)

		Bank A/c	Dr.		3,000
		To Share Capital A/c				3,000
		(300 shares of Rs 10 each re-issued)

		Share Forfeiture A/c	Dr.		1,500
		To Capital Reserve A/c				1,500
		(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve)

Working Notes-

Share Forfeiture Credit (at the time of forfeiture of shares)	1,500
Less: Share Forfeiture Debit (at the time of re-issue shares)	NIL
Balance in Share Forfeiture after re-issue of shares	1,500

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

= Rs 1,500

(ii)	Books of Y Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Share Capital A/c	Dr.		4,000
	To Share Forfeiture A/c				2,400
	To Calls-in-Arrears A/c				1,600
	(400 shares of Rs 10 forfeited for the non-payment of final call Rs 4 per share)

	Bank A/c	Dr.		4,800
	To Share Capital A/c				4,000
	To Securities Premium A/c				800
	(400 shares of 10 each re-issued at Rs 12 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		2,400
	To Capital Reserve A/c				2,400
	(Balance of Share Forfeiture after re-issue transferred to Capital Reserve)

Working Notes-

Share Forfeiture Credit (at the time of forfeiture of shares)	2,400
Less: Share Forfeiture Debit (at the time of re-issue shares)	NIL
Balance in Share Forfeiture after re-issue of shares	2,400

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

= Rs 2,400

(iii)	Books of Z Limited Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Share Capital A/c	Dr.		2,500
		To Share Forfeiture A/c (250×3)				750
		To Calls-in-Arrears A/c				1,750
		(250 shares of Rs 10 each forfeited for the non-payment Rs 7 per share)

		Bank A/c	Dr.		2,000
		Share Forfeiture A/c	Dr.		500
		To Share Capital A/c				2,500
		(250 shares of Rs 10 each re-issued for Rs 8 per share as fully paid-up )

		Share Forfeiture A/c	Dr.		250
		To Capital Reserve A/c				250
		(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve)

Working Notes-

Share Forfeiture Credit (at the time of forfeiture of shares)	750
Less: Share Forfeiture Debit (at the time of re-issue shares)	500
Balance in Share Forfeiture after re-issue of shares	250

Capital Reserve = Balance in Share Forfeiture of re-issued shares = Rs 250

Answer:

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

		Share Capital A/c	Dr.		300
		To Share Forfeiture A/c (30 × Rs 3)				90
		To Calls-in-Arrears A/c				210
		(30 shares of Rs 10 each forfeited for the non-payment of Rs 7 per share)

		Bank A/c	Dr.		240
		Share Forfeiture A/c (30 × Rs 2)	Dr.		60
		To Share Capital A/c				300
		(30 shares of Rs 10 each re-issued at Rs 8 per shares as fully paid-up)

		Share Forfeiture A/c	Dr.		30
		To Capital Reserve A/c				30
		(Balance in Share Forfeiture Account after re-issue of shares, transferred to Capital Reserve)

Working Notes-

Share Forfeiture Credit (at the time of forfeiture of shares)	Rs 90
Less: Share Forfeiture Debit (at the time of re-issue shares)	Rs 60
Balance in share forfeiture after re-issue of shares	Rs 30

Capital Reserve = Balance in Share Forfeiture of reissued shares

= Rs 30

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

	Share Capital A/c (20 × Rs 7)	Dr.		140
	To Share Forfeiture A/c (20 × Rs 5)				100
	To Calls-in-Arrears A/c				40
	(20 shares of Rs 10 each, Rs 7 called-up, forfeited for non-payment of Rs 2 per share)

	Bank A/c	Dr.		90
	Share Forfeiture A/c (Rs 4 × 15)	Dr.		60
	To Share Capital A/c				150
	(15 shares of Rs 10 each re-issued at Rs 6 per share fully paid-up)

	Share Forfeiture A/c	Dr.		15
	To Capital Reserve A/c				15
	(Balance in Share Forfeiture of 15 shares after re-issue, transferred to Capital Reserve)

Working Notes-

Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	Rs 5	per share
Less: Share Forfeiture	Dr.	Rs 4	per share
Balance in Share Forfeiture after re-issue		Re 1	per share

Capital Reserve	= Balance in Share Forfeiture after re-issue × No. of shares reissued
	= Re 1 × 15
	= Rs 15

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

		Share Capital A/c (Rs 6 × 10)	Dr.		60
		To Share Forfeiture A/c (Rs 2 × 10)				20
		To Calls-in-Arrears A/c (Rs 3 × 10)				30
		To Discount on Issue of Shares A/c (Re 1 × 10)				10
		(10 shares of Rs 10 each at discount of Re 1 on which Rs 7 had called, forfeited for the non-payment of Rs 3 per share)

		Bank A/c (Rs 6 × 8)	Dr.		48
		Share Forfeiture A/c (Re 1 × 8)	Dr.		8
		Discount on Issue of Shares A/c (Re 1×8)	Dr.		8
		To Share Capital A/c				64
		(8 shares of Rs 10 each at a discount Re 1, reissued at Rs 6 each as Rs 8 called-up)

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

Working Notes:

Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	Rs 2	per share
Less: Share Forfeiture	Dr.	Re 1	per share (Loss on re-issue excluding discount Re 1)
Balance in Share Forfeiture		Re 1	per share (after re-issue)

Capital Reserve	= Balance in Share Forfeiture after re-issue (per share) × No. of Shares Re-issued
	= Re 1 × 8
	= Rs 8

Question 90:

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

		Share Capital A/c	Dr.		300
		To Share Forfeiture A/c (30 × Rs 3)				90
		To Calls-in-Arrears A/c				210
		(30 shares of Rs 10 each forfeited for the non-payment of Rs 7 per share)

		Bank A/c	Dr.		240
		Share Forfeiture A/c (30 × Rs 2)	Dr.		60
		To Share Capital A/c				300
		(30 shares of Rs 10 each re-issued at Rs 8 per shares as fully paid-up)

		Share Forfeiture A/c	Dr.		30
		To Capital Reserve A/c				30
		(Balance in Share Forfeiture Account after re-issue of shares, transferred to Capital Reserve)

Working Notes-

Share Forfeiture Credit (at the time of forfeiture of shares)	Rs 90
Less: Share Forfeiture Debit (at the time of re-issue shares)	Rs 60
Balance in share forfeiture after re-issue of shares	Rs 30

Capital Reserve = Balance in Share Forfeiture of reissued shares

= Rs 30

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

	Share Capital A/c (20 × Rs 7)	Dr.		140
	To Share Forfeiture A/c (20 × Rs 5)				100
	To Calls-in-Arrears A/c				40
	(20 shares of Rs 10 each, Rs 7 called-up, forfeited for non-payment of Rs 2 per share)

	Bank A/c	Dr.		90
	Share Forfeiture A/c (Rs 4 × 15)	Dr.		60
	To Share Capital A/c				150
	(15 shares of Rs 10 each re-issued at Rs 6 per share fully paid-up)

	Share Forfeiture A/c	Dr.		15
	To Capital Reserve A/c				15
	(Balance in Share Forfeiture of 15 shares after re-issue, transferred to Capital Reserve)

Working Notes-

Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	Rs 5	per share
Less: Share Forfeiture	Dr.	Rs 4	per share
Balance in Share Forfeiture after re-issue		Re 1	per share

Capital Reserve	= Balance in Share Forfeiture after re-issue × No. of shares reissued
	= Re 1 × 15
	= Rs 15

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

		Share Capital A/c (Rs 6 × 10)	Dr.		60
		To Share Forfeiture A/c (Rs 2 × 10)				20
		To Calls-in-Arrears A/c (Rs 3 × 10)				30
		To Discount on Issue of Shares A/c (Re 1 × 10)				10
		(10 shares of Rs 10 each at discount of Re 1 on which Rs 7 had called, forfeited for the non-payment of Rs 3 per share)

		Bank A/c (Rs 6 × 8)	Dr.		48
		Share Forfeiture A/c (Re 1 × 8)	Dr.		8
		Discount on Issue of Shares A/c (Re 1×8)	Dr.		8
		To Share Capital A/c				64
		(8 shares of Rs 10 each at a discount Re 1, reissued at Rs 6 each as Rs 8 called-up)

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

Working Notes:

Share Forfeiture of re-issued shares
Share Forfeiture	Cr.	Rs 2	per share
Less: Share Forfeiture	Dr.	Re 1	per share (Loss on re-issue excluding discount Re 1)
Balance in Share Forfeiture		Re 1	per share (after re-issue)

Capital Reserve	= Balance in Share Forfeiture after re-issue (per share) × No. of Shares Re-issued
	= Re 1 × 8
	= Rs 8

Answer:

(a)	Books of VT Limited Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Share Capital A/c (200 × Rs 10)	Dr.		2,000
		To Share Forfeiture A/c (200 × Rs 7)				1,400
		To Calls-in-Arrears A/c				600
		(200 shares of Rs 10 each forfeited for non-payment of Rs 3 each)

		Bank A/c	Dr.		600
		Share Forfeiture A/c (100 × Rs 4)	Dr.		400
		To Share Capital A/c				1,000
		(100 shares of Rs 10 each re-issued at Rs 6 per share fully paid-up)

		Share Forfeiture A/c	Dr.		300
		To Capital Reserve A/c				300
		(Balance in share forfeiture of 100 shares transferred to capital reserve)

Working Notes-

Share Forfeiture of re-issued shares
Share Forfeiture Cr.	Rs 7	per share
Share Forfeiture Dr.	Rs 4	per share
Balance in Share Forfeiture after re-issue	Rs 3	per share

Capital Reserve	= Balance in Share Forfeiture after re-issue (per share) × No. of shares re-issued
	= Re 3 × 100
	= Rs 300

(b)	Books of ABC Limited Journal Entries
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Share Capital A/c (500 × Rs 9)	Dr.		4,500
		To Share Forfeiture A/c (500 × Rs 5)				2,500
		To Discount on Issue of Shares A/c				500
		To Calls-in-Arrears A/c				1,500
		(500 shares of Rs 10 each at a discount on which Rs 9 had called-up, forfeited for-payment of Rs 3)

		Bank A/c	Dr.		2,000
		Discount on Issue of Shares A/c	Dr.		250
		Share Forfeiture A/c	Dr.		250
		To Share Capital A/c				2,500
		(250 shares of Rs 10 each at discount of Re 1, re-issued at Rs 8 each as fully paid-up)

		Share Forfeiture A/c	Dr.		1,000
		To Capital Reserve				1,000
		(Balance in share forfeiture of 250 re-issued shares transferred to capital reserve)

Working Notes:

Share Forfeiture of Re-issued Shares
Share Forfeiture Cr.	Rs 5	per share
Share Forfeiture Dr.	Rs 1	per share
Balance after re-issue	Rs 4	per share

Capital Reserve	= Balance in Share Forfeiture after re-issue (per share) × No. of shares re-issued
	= Rs 4 × 250
	= Rs 1,000

Question 91:

(a)	Books of VT Limited Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Share Capital A/c (200 × Rs 10)	Dr.		2,000
		To Share Forfeiture A/c (200 × Rs 7)				1,400
		To Calls-in-Arrears A/c				600
		(200 shares of Rs 10 each forfeited for non-payment of Rs 3 each)

		Bank A/c	Dr.		600
		Share Forfeiture A/c (100 × Rs 4)	Dr.		400
		To Share Capital A/c				1,000
		(100 shares of Rs 10 each re-issued at Rs 6 per share fully paid-up)

		Share Forfeiture A/c	Dr.		300
		To Capital Reserve A/c				300
		(Balance in share forfeiture of 100 shares transferred to capital reserve)

Working Notes-

Share Forfeiture of re-issued shares
Share Forfeiture Cr.	Rs 7	per share
Share Forfeiture Dr.	Rs 4	per share
Balance in Share Forfeiture after re-issue	Rs 3	per share

Capital Reserve	= Balance in Share Forfeiture after re-issue (per share) × No. of shares re-issued
	= Re 3 × 100
	= Rs 300

(b)	Books of ABC Limited Journal Entries
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Share Capital A/c (500 × Rs 9)	Dr.		4,500
		To Share Forfeiture A/c (500 × Rs 5)				2,500
		To Discount on Issue of Shares A/c				500
		To Calls-in-Arrears A/c				1,500
		(500 shares of Rs 10 each at a discount on which Rs 9 had called-up, forfeited for-payment of Rs 3)

		Bank A/c	Dr.		2,000
		Discount on Issue of Shares A/c	Dr.		250
		Share Forfeiture A/c	Dr.		250
		To Share Capital A/c				2,500
		(250 shares of Rs 10 each at discount of Re 1, re-issued at Rs 8 each as fully paid-up)

		Share Forfeiture A/c	Dr.		1,000
		To Capital Reserve				1,000
		(Balance in share forfeiture of 250 re-issued shares transferred to capital reserve)

Working Notes:

Share Forfeiture of Re-issued Shares
Share Forfeiture Cr.	Rs 5	per share
Share Forfeiture Dr.	Rs 1	per share
Balance after re-issue	Rs 4	per share

Capital Reserve	= Balance in Share Forfeiture after re-issue (per share) × No. of shares re-issued
	= Rs 4 × 250
	= Rs 1,000

Answer:

1)

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Share Capital A/c (75Ã—500)	Dr.		37,500
	To Share Forfeiture A/c (45Ã—500)				22,500
	To Discount on Issue A/c (10Ã—500)				5,000
	To Calls-in-Arrears (20Ã—500)				10,000
	(500 shares of Rs 100 each issued at discount forfeited for non payment of Rs 20, Rs 75 called up)

	Bank A/c	Dr.		37,500
	To Share Capital A/c				30,000
	To Securities Premium A/c				7,500
	(300 shares of Rs 100 each reissued at Rs 125)

	Bank A/c	Dr.		20,000
	To Share Capital A/c				20,000
	(200 shares reissued at Rs 100)

	Share Forfeiture A/c	Dr.		22,500
	To Capital Reserve A/c				22,500
	(Profit on reissue transferred to capital reserve)

2)

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Equity Share Capital A/c (8Ã—1,000)	Dr.		8,000
	Securities Premium A/c (2Ã—1,000)	Dr.		2,000
	To Share Forfeiture A/c				5,000
	To Calls-in-Arrears				5,000
	(1,000 shares of Rs 10 each issued at premium of Rs 2 forfeited for non payment of allotment money of Rs 5 including premium, final call of Rs 2 not yet made)

	Bank A/c (12Ã—800)	Dr.		9,600
	To Share Capital A/c				8,000
	To Securities Premium A/c				1,600
	(800 shares reissued at Rs 12 fully paid up)

	Bank A/c (11Ã—200)	Dr.		2,200
	To Share Capital A/c				2,000
	To Securities Premium A/c				200
	(200 shares reissued at Rs 11 fully paid up)

	Share Forfeiture A/c	Dr.		5,000
	To Capital Reserve A/c				5,000
	(Profit on reissue transferred to capital reserve)

Question 92:

1)

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Share Capital A/c (75Ã—500)	Dr.		37,500
	To Share Forfeiture A/c (45Ã—500)				22,500
	To Discount on Issue A/c (10Ã—500)				5,000
	To Calls-in-Arrears (20Ã—500)				10,000
	(500 shares of Rs 100 each issued at discount forfeited for non payment of Rs 20, Rs 75 called up)

	Bank A/c	Dr.		37,500
	To Share Capital A/c				30,000
	To Securities Premium A/c				7,500
	(300 shares of Rs 100 each reissued at Rs 125)

	Bank A/c	Dr.		20,000
	To Share Capital A/c				20,000
	(200 shares reissued at Rs 100)

	Share Forfeiture A/c	Dr.		22,500
	To Capital Reserve A/c				22,500
	(Profit on reissue transferred to capital reserve)

2)

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Equity Share Capital A/c (8Ã—1,000)	Dr.		8,000
	Securities Premium A/c (2Ã—1,000)	Dr.		2,000
	To Share Forfeiture A/c				5,000
	To Calls-in-Arrears				5,000
	(1,000 shares of Rs 10 each issued at premium of Rs 2 forfeited for non payment of allotment money of Rs 5 including premium, final call of Rs 2 not yet made)

	Bank A/c (12Ã—800)	Dr.		9,600
	To Share Capital A/c				8,000
	To Securities Premium A/c				1,600
	(800 shares reissued at Rs 12 fully paid up)

	Bank A/c (11Ã—200)	Dr.		2,200
	To Share Capital A/c				2,000
	To Securities Premium A/c				200
	(200 shares reissued at Rs 11 fully paid up)

	Share Forfeiture A/c	Dr.		5,000
	To Capital Reserve A/c				5,000
	(Profit on reissue transferred to capital reserve)

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 Discount on Issue of Shares A/c				20
		To Calls-in-Arrears A/c				80
		(20 shares of Rs 10 each at a discount Re 1, on which Rs 7 had called-up, forfeited for the non-payment of Rs 4)

		Bank A/c	Dr.		108
		Discount on Issue of Shares A/c	Dr.		18
		Share Forfeiture A/c	Dr.		18
		To Share Capital A/c				144
		(18 shares of Rs 10 each re-issued at Rs 6 per share after allowing discount Re 1, as Rs 8 called-up)

		Share Forfeiture A/c	Dr.		18
		To Capital Reserve A/c				18
		(Balance in Share Forfeiture Account 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.)	Re 1	per share
	Re 1	per share

Capital Reserve = Balance in share forfeiture after re-issue (per share) × no of share re-issued = Re 1 × 18 shares = Rs 18

Question 93:

(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 Discount on Issue of Shares A/c				20
		To Calls-in-Arrears A/c				80
		(20 shares of Rs 10 each at a discount Re 1, on which Rs 7 had called-up, forfeited for the non-payment of Rs 4)

		Bank A/c	Dr.		108
		Discount on Issue of Shares A/c	Dr.		18
		Share Forfeiture A/c	Dr.		18
		To Share Capital A/c				144
		(18 shares of Rs 10 each re-issued at Rs 6 per share after allowing discount Re 1, as Rs 8 called-up)

		Share Forfeiture A/c	Dr.		18
		To Capital Reserve A/c				18
		(Balance in Share Forfeiture Account 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.)	Re 1	per share
	Re 1	per share

Capital Reserve = Balance in share forfeiture after re-issue (per share) × no of share re-issued = Re 1 × 18 shares = Rs 18

Answer:

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Share Capital A/c (20 Shares × 7)	Dr.		140
	To Share Forfeiture A/c (20 Shares × 5)				100
	To Calls-in- Arrears A/c (20 Shares × 2)				40
	(20 Shares of Rs 10 each, Rs 7 called-up forfeited for the non-payment of call)

	Bank A/c (15 Shares × 8)	Dr.		120
	To Share Capital A/c (15 Shares × 7)				105
	To Securities Premium A/c (15 Shares × 1)				15
	(15 shares were reissued as Rs 7 paid-up for Rs 8 per share)

	Shares Forfeiture A/c (15 Shares × 5)	Dr.		75*
	To Capital Reserve A/c				75
	(Transfer of profit on re-issue of 15 shares)

(b)	Share Capital A/c (90 Shares × 8)	Dr.		720
	Securities Premium A/c (90 Shares × 2)	Dr.		180
	To Share Forfeiture A/c (90 Shares × 5)				450
	To Share Allotment A/c (90 Shares × 5)				450
	(Shares forfeited for non-payment of allotment)
	Bank A/c (80 Shares × 10)	Dr.		800
	To Share Capital A/c (80 Shares × 8)				640
	To Securities Premium A/c (80 Shares × 2)				160
	(80 shares were reissued for Rs 10, Rs 8 called-up)

	Shares Forfeiture A/c (80 Shares × 5)	Dr.		400
	To Capital Reserve A/c				400
	(Transfer of profit on re-issue of 80 shares)

(c)	Share Capital A/c (300 Shares × 10)	Dr.		3,000
	To Share Forfeiture A/c (300 Shares × 6)				1,800
	To Discount on Issue of Shares A/c (300 Shares × 1)				300
	To Share First and Final Call A/c (300 Shares × 3)				900
	(Shares forfeited for non-payment of First and Final Call)

	Bank A/c (200 Shares × 3)	Dr.		600
	Discount on Issue of Shares A/c (200 Shares × 1)	Dr.		200
	Share Forfeiture A/c (200 Shares × 6)			1,200
	To Share Capital A/c (200 Shares × 10)				2,000
	(200 shares were reissued for Rs 3 per share, fully called-up)

Working Notes-
Note 1

Note 2

Note 3

Question 94:

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Share Capital A/c (20 Shares × 7)	Dr.		140
	To Share Forfeiture A/c (20 Shares × 5)				100
	To Calls-in- Arrears A/c (20 Shares × 2)				40
	(20 Shares of Rs 10 each, Rs 7 called-up forfeited for the non-payment of call)

	Bank A/c (15 Shares × 8)	Dr.		120
	To Share Capital A/c (15 Shares × 7)				105
	To Securities Premium A/c (15 Shares × 1)				15
	(15 shares were reissued as Rs 7 paid-up for Rs 8 per share)

	Shares Forfeiture A/c (15 Shares × 5)	Dr.		75*
	To Capital Reserve A/c				75
	(Transfer of profit on re-issue of 15 shares)

(b)	Share Capital A/c (90 Shares × 8)	Dr.		720
	Securities Premium A/c (90 Shares × 2)	Dr.		180
	To Share Forfeiture A/c (90 Shares × 5)				450
	To Share Allotment A/c (90 Shares × 5)				450
	(Shares forfeited for non-payment of allotment)
	Bank A/c (80 Shares × 10)	Dr.		800
	To Share Capital A/c (80 Shares × 8)				640
	To Securities Premium A/c (80 Shares × 2)				160
	(80 shares were reissued for Rs 10, Rs 8 called-up)

	Shares Forfeiture A/c (80 Shares × 5)	Dr.		400
	To Capital Reserve A/c				400
	(Transfer of profit on re-issue of 80 shares)

(c)	Share Capital A/c (300 Shares × 10)	Dr.		3,000
	To Share Forfeiture A/c (300 Shares × 6)				1,800
	To Discount on Issue of Shares A/c (300 Shares × 1)				300
	To Share First and Final Call A/c (300 Shares × 3)				900
	(Shares forfeited for non-payment of First and Final Call)

	Bank A/c (200 Shares × 3)	Dr.		600
	Discount on Issue of Shares A/c (200 Shares × 1)	Dr.		200
	Share Forfeiture A/c (200 Shares × 6)			1,200
	To Share Capital A/c (200 Shares × 10)				2,000
	(200 shares were reissued for Rs 3 per share, fully called-up)

Working Notes-
Note 1

Note 2

Note 3

Answer:

Issued capital 30,000 equity shares of Rs 10 each at a discount Re 1 per share

Applied 40,000 shares

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 2
4,000	NIL	Allotment	Rs 3	(4–1)
36,000	30,000	First and Final Call	Rs 4
40,000	30,000		Rs 9	(10–1)

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

	Bank A/c	Dr.		80,000
	To Equity Share Application A/c				80,000
	(Share application money received for 40,000 shares at Rs 2 each)

	Equity Share Application A/c	Dr.		80,000
	To Equity Share Capital A/c				60,000
	To Equity Share Allotment A/c				12,000
	To Bank A/c				8,000
	(Share application at Rs 2 each on 30,000 shares transferred to Share Capital, Rs 12,000 adjusted on allotment and Rs 8,000 refunded)

	Equity Share Allotment A/c	Dr.		90,000
	Discount on issue of share A/c	Dr.		30,000
	To Equity Share Capital A/c				1,20,000
	(Share allotment due on 30,000 shares at Rs 3 each after a discount Re 1)

	Bank A/c	Dr.		71,900
	Calls-in-Arrears A/c	Dr.		6,100
	To Equity Share Allotment A/c				78,000
	(Share allotment money received and default in payment transferred Calls-in-Arrears)

	Equity Share Capital A/c	Dr.		12,000
	To Share Forfeiture A/c				4,800
	To Discount on Issue of Shares A/c				2,000
	To Calls-in-Arrears A/c				5,200
	(2,000 shares held by M forfeited for non-payment of allotment)

	Equity Share first and Final Call A/c	Dr.		1,12,000
	To Equity Share Capital A/c				1,12,000
	(First and final call due on 28,000 shares at Rs 4 each)

	Bank A/c	Dr.		1,06,000
	Calls-in-Arrears A/c	Dr.		14,000
	To Equity Share First and Final Call A/c				1,20,000
	(First and final call received and default in payment transferred to Calls-in-Arrears)

	Equity Share Capital A/c	Dr.		15,000
	To Share Forfeiture A/c				6,600
	To Discount on issue of Shares A/c				1,500
	To Calls-in-Arrears A/c				6,900
	(1,500 shares held by S forfeited for non- payment of allotment and call)

Working Notes-

Number of shares allotted to M	=
	=	2,000 shares

Number of shares applied by S	=
	=	1,800 shares

M’s Shares
Money received on application 2,400 × Rs 2	=	Rs 4,800
Less: App. money transferred to Share Capital 2000 × Rs 2	=	Rs 4,000
Excess money on application		800

Allotment due on 2,000 × Rs 3	=	6,000
Less: Excess money on application	=	800
Calls-in-Arrears on allotment by M		5,200

S’s Shares
Money received on application 1,800 × Rs 2	=	Rs 3,600
App. money transferred to Share Capital 1,500 × Rs 2	=	Rs 3,000
Excess money on application		600

Allotment due 1,500 × Rs 3	=	4,500
Less: Excess money on application	=	600
		3,900
Less: Amount received on allotment		3,000
Calls-in-Arrears on allotment by S		900

Calls-in-Arrears on First and Final Call 1,500 Share × Rs 4 = Rs 6,000

Calls-in-Arrears to be credited at the time of share forfeiture	=	900 + 6,000
	=	Rs 6,900

Share Allotment

Share Allotment due 30,000 shares × Rs 3	=	90,000
Less: Excess application money to be adjusted on allotment	=	12,000
		78,000
Less: Calls-in-Arrears by M	=	5,200
Less: Calls-in-Arrears by S	=	900
Money received on Share Allotment	=	71,900

Share First and Final Call

Share First and Final Call due 28,000 × 4	=	1,12,000
Less: Calls-in-Arrears by S	=	6,000
Money received on First and Final Call	=	1,06,000

Question 95:

Issued capital 30,000 equity shares of Rs 10 each at a discount Re 1 per share

Applied 40,000 shares

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 2
4,000	NIL	Allotment	Rs 3	(4–1)
36,000	30,000	First and Final Call	Rs 4
40,000	30,000		Rs 9	(10–1)

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

	Bank A/c	Dr.		80,000
	To Equity Share Application A/c				80,000
	(Share application money received for 40,000 shares at Rs 2 each)

	Equity Share Application A/c	Dr.		80,000
	To Equity Share Capital A/c				60,000
	To Equity Share Allotment A/c				12,000
	To Bank A/c				8,000
	(Share application at Rs 2 each on 30,000 shares transferred to Share Capital, Rs 12,000 adjusted on allotment and Rs 8,000 refunded)

	Equity Share Allotment A/c	Dr.		90,000
	Discount on issue of share A/c	Dr.		30,000
	To Equity Share Capital A/c				1,20,000
	(Share allotment due on 30,000 shares at Rs 3 each after a discount Re 1)

	Bank A/c	Dr.		71,900
	Calls-in-Arrears A/c	Dr.		6,100
	To Equity Share Allotment A/c				78,000
	(Share allotment money received and default in payment transferred Calls-in-Arrears)

	Equity Share Capital A/c	Dr.		12,000
	To Share Forfeiture A/c				4,800
	To Discount on Issue of Shares A/c				2,000
	To Calls-in-Arrears A/c				5,200
	(2,000 shares held by M forfeited for non-payment of allotment)

	Equity Share first and Final Call A/c	Dr.		1,12,000
	To Equity Share Capital A/c				1,12,000
	(First and final call due on 28,000 shares at Rs 4 each)

	Bank A/c	Dr.		1,06,000
	Calls-in-Arrears A/c	Dr.		14,000
	To Equity Share First and Final Call A/c				1,20,000
	(First and final call received and default in payment transferred to Calls-in-Arrears)

	Equity Share Capital A/c	Dr.		15,000
	To Share Forfeiture A/c				6,600
	To Discount on issue of Shares A/c				1,500
	To Calls-in-Arrears A/c				6,900
	(1,500 shares held by S forfeited for non- payment of allotment and call)

Working Notes-

Number of shares allotted to M	=
	=	2,000 shares

Number of shares applied by S	=
	=	1,800 shares

M’s Shares
Money received on application 2,400 × Rs 2	=	Rs 4,800
Less: App. money transferred to Share Capital 2000 × Rs 2	=	Rs 4,000
Excess money on application		800

Allotment due on 2,000 × Rs 3	=	6,000
Less: Excess money on application	=	800
Calls-in-Arrears on allotment by M		5,200

S’s Shares
Money received on application 1,800 × Rs 2	=	Rs 3,600
App. money transferred to Share Capital 1,500 × Rs 2	=	Rs 3,000
Excess money on application		600

Allotment due 1,500 × Rs 3	=	4,500
Less: Excess money on application	=	600
		3,900
Less: Amount received on allotment		3,000
Calls-in-Arrears on allotment by S		900

Calls-in-Arrears on First and Final Call 1,500 Share × Rs 4 = Rs 6,000

Calls-in-Arrears to be credited at the time of share forfeiture	=	900 + 6,000
	=	Rs 6,900

Share Allotment

Share Allotment due 30,000 shares × Rs 3	=	90,000
Less: Excess application money to be adjusted on allotment	=	12,000
		78,000
Less: Calls-in-Arrears by M	=	5,200
Less: Calls-in-Arrears by S	=	900
Money received on Share Allotment	=	71,900

Share First and Final Call

Share First and Final Call due 28,000 × 4	=	1,12,000
Less: Calls-in-Arrears by S	=	6,000
Money received on First and Final Call	=	1,06,000

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 96:

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:

Issued capital 8,000 shares of 100 each at discount Rs 6

Applied 10,000 shares

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 30	per share
9,000	8,000	Allotment	Rs 40	(46 – 6) per share
1,000	NIL	First and Final Call	Rs 24	per share
10,000	8,000		Rs 94	(100–6) per share

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

	Bank A/c	Dr.		3,00,000
	To Share Application A/c				3,00,000
	(Share application received for 10,000 shares at Rs 30 each)

	Share Application A/c	Dr.		3,00,000
	To Share Capital A/c				2,40,000
	To Share Allotment A/c				30,000
	To Bank A/c				30,000
	(Share application 8,000 shares transferred to Share Capital, Rs 30,000 adjusted on allotment and remaining Rs 30,000 refunded)

	Share Allotment A/c	Dr.		3,20,000
	Discount on Issue of Shares A/c	Dr.		48,000
	To Share Capital A/c				3,68,000
	(Allotment due on 8,000 shares at Rs 40 each after a discount of Rs 6)

	Bank A/c	Dr.		2,90,000
	To Share Allotment A/c				2,90,000
	(Share allotment money received)

	Share First and Final Call A/c	Dr.		1,92,000
	To Share Capital A/c				1,92,000
	(Share first and final call due on 8,000 shares at Rs 24 each)

	Bank A/c	Dr.		1,82,400
	Calls-in-Arrears A/c	Dr.		9,600
	To Share First and Final Call A/c				1,92,000
	(First and final call received on 7,600 shares at Rs 24 each)

	Share Capital A/c	Dr.		40,000
	To Share Forfeiture A/c				28,000
	To Discount on Issue of Shares A/c				2,400
	To Calls-in-Arrears A/c (400 × Rs 24)				9,600
	(400 shares of Rs 100 at a discount of Rs 6, forfeited for the non-payment of Rs 24)

	Bank A/c	Dr.		42,000
	To Share Capital A/c				40,000
	To Securities Premium A/c				2,000
	(400 shares of 100 each re-issued for the sum of Rs 42,000)

	Share Forfeiture A/c	Dr.		28,000
	To Capital Reserve A/c				28,000
	(Balance in Share Forfeiture Account transferred to Capital Reserve)

Working Note:

1. Number of shares allotted to Suresh	=
	=	400 shares

2. Share Forfeiture of re-issued shares
Share Forfeiture Cr.	Rs 28,000
Share Forfeiture Dr.	NIL
Balance in Share Forfeiture after re-issue	Rs 28,000

Capital Reserve = Balance in Share Forfeiture after re-issue = Rs 28,000

Question 97:

Issued capital 8,000 shares of 100 each at discount Rs 6

Applied 10,000 shares

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 30	per share
9,000	8,000	Allotment	Rs 40	(46 – 6) per share
1,000	NIL	First and Final Call	Rs 24	per share
10,000	8,000		Rs 94	(100–6) per share

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

	Bank A/c	Dr.		3,00,000
	To Share Application A/c				3,00,000
	(Share application received for 10,000 shares at Rs 30 each)

	Share Application A/c	Dr.		3,00,000
	To Share Capital A/c				2,40,000
	To Share Allotment A/c				30,000
	To Bank A/c				30,000
	(Share application 8,000 shares transferred to Share Capital, Rs 30,000 adjusted on allotment and remaining Rs 30,000 refunded)

	Share Allotment A/c	Dr.		3,20,000
	Discount on Issue of Shares A/c	Dr.		48,000
	To Share Capital A/c				3,68,000
	(Allotment due on 8,000 shares at Rs 40 each after a discount of Rs 6)

	Bank A/c	Dr.		2,90,000
	To Share Allotment A/c				2,90,000
	(Share allotment money received)

	Share First and Final Call A/c	Dr.		1,92,000
	To Share Capital A/c				1,92,000
	(Share first and final call due on 8,000 shares at Rs 24 each)

	Bank A/c	Dr.		1,82,400
	Calls-in-Arrears A/c	Dr.		9,600
	To Share First and Final Call A/c				1,92,000
	(First and final call received on 7,600 shares at Rs 24 each)

	Share Capital A/c	Dr.		40,000
	To Share Forfeiture A/c				28,000
	To Discount on Issue of Shares A/c				2,400
	To Calls-in-Arrears A/c (400 × Rs 24)				9,600
	(400 shares of Rs 100 at a discount of Rs 6, forfeited for the non-payment of Rs 24)

	Bank A/c	Dr.		42,000
	To Share Capital A/c				40,000
	To Securities Premium A/c				2,000
	(400 shares of 100 each re-issued for the sum of Rs 42,000)

	Share Forfeiture A/c	Dr.		28,000
	To Capital Reserve A/c				28,000
	(Balance in Share Forfeiture Account transferred to Capital Reserve)

Working Note:

1. Number of shares allotted to Suresh	=
	=	400 shares

2. Share Forfeiture of re-issued shares
Share Forfeiture Cr.	Rs 28,000
Share Forfeiture Dr.	NIL
Balance in Share Forfeiture after re-issue	Rs 28,000

Capital Reserve = Balance in Share Forfeiture after re-issue = Rs 28,000

Answer:

Issued 1,00,000 Equity Share of Rs 500 each at discount of Rs 50

Applied 2,00,000 Shares

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 100	per share
1,50,000	1,00,000	Allotment	Rs 150	(200–50) per share
50,000	NIL	First and Final Call	Rs 200	per share
2,00,000	1,00,000		Rs 450	(500–50) per share

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

	Bank A/c	Dr.		2,00,00,000
	To Equity Share Application A/c				2,00,00,000
	(Share application money received for 2,00,000 shares of Rs 100 each)

	Equity Share Application A/c	Dr.		2,00,00,000
	To Equity Share Capital A/c				1,00,00,000
	To Equity Share Allotment A/c				50,00,000
	To Bank A/c				50,00,000
	(Application money of 1,00,000 shares transferred to Share Capital and Rs 50,00,000 adjusted on allotment and remaining Rs 50,00,000 refunded)

	Discount on Issue of Shares A/c	Dr.		50,00,000
	Equity Share Allotment A/c	Dr.		1,50,00,000
	To Equity Share Capital A/c				2,00,00,000
	(Share allotment due on 1,00,000 shares at Rs 150 each after discount Rs 50)

	Bank A/c	Dr.		1,00,00,000
	To Equity Share Allotment A/c				1,00,00,000
	(Share allotment money received)

	Equity Share First and Final Call A/c	Dr.		2,00,00,000
	To Equity Share Capital A/c				2,00,00,000
	(First and final call due on 1,00,000 shares at Rs 200 each)

	Bank A/c	Dr.		1,99,60,000
	Calls-in-Arrears A/c	Dr.		40,000
	To Equity Share First and Final Call A/c				2,00,00,000
	(First and final call received on 99,800 shares at Rs 200 each and money of 200 shares were in default transferred to Calls-in-Arrears)

	Equity Share Capital A/c	Dr.		1,00,000
	To Shares Forfeiture A/c				50,000
	To Discount on Issue of Shares A/c				10,000
	To Calls-in-Arrears A/c				40,000
	(200 shares forfeited for the non-payment of Rs 200 per share)

	Bank A/c	Dr.		95,000
	Discount on Issue of Shares A/c	Dr.		5,000
	To Equity Shares Capital A/c				1,00,000
	(200 shares of Rs 500 each re-issued for the sum of Rs 95,000)

	Share Forfeiture A/c	Dr.		50,000
	To Capital Reserve A/c				50,000
	(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve)

Working Notes-

Share Forfeiture of re-issued shares
Share Forfeiture Cr.	Rs 50,000
Share Forfeiture Dr.	NIL
Balance in Share Forfeiture after re-issue	Rs 50,000

Capital Reserve = Balance in Share Forfeiture after re-issue = Rs 50,000

Question 98:

Issued 1,00,000 Equity Share of Rs 500 each at discount of Rs 50

Applied 2,00,000 Shares

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 100	per share
1,50,000	1,00,000	Allotment	Rs 150	(200–50) per share
50,000	NIL	First and Final Call	Rs 200	per share
2,00,000	1,00,000		Rs 450	(500–50) per share

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

	Bank A/c	Dr.		2,00,00,000
	To Equity Share Application A/c				2,00,00,000
	(Share application money received for 2,00,000 shares of Rs 100 each)

	Equity Share Application A/c	Dr.		2,00,00,000
	To Equity Share Capital A/c				1,00,00,000
	To Equity Share Allotment A/c				50,00,000
	To Bank A/c				50,00,000
	(Application money of 1,00,000 shares transferred to Share Capital and Rs 50,00,000 adjusted on allotment and remaining Rs 50,00,000 refunded)

	Discount on Issue of Shares A/c	Dr.		50,00,000
	Equity Share Allotment A/c	Dr.		1,50,00,000
	To Equity Share Capital A/c				2,00,00,000
	(Share allotment due on 1,00,000 shares at Rs 150 each after discount Rs 50)

	Bank A/c	Dr.		1,00,00,000
	To Equity Share Allotment A/c				1,00,00,000
	(Share allotment money received)

	Equity Share First and Final Call A/c	Dr.		2,00,00,000
	To Equity Share Capital A/c				2,00,00,000
	(First and final call due on 1,00,000 shares at Rs 200 each)

	Bank A/c	Dr.		1,99,60,000
	Calls-in-Arrears A/c	Dr.		40,000
	To Equity Share First and Final Call A/c				2,00,00,000
	(First and final call received on 99,800 shares at Rs 200 each and money of 200 shares were in default transferred to Calls-in-Arrears)

	Equity Share Capital A/c	Dr.		1,00,000
	To Shares Forfeiture A/c				50,000
	To Discount on Issue of Shares A/c				10,000
	To Calls-in-Arrears A/c				40,000
	(200 shares forfeited for the non-payment of Rs 200 per share)

	Bank A/c	Dr.		95,000
	Discount on Issue of Shares A/c	Dr.		5,000
	To Equity Shares Capital A/c				1,00,000
	(200 shares of Rs 500 each re-issued for the sum of Rs 95,000)

	Share Forfeiture A/c	Dr.		50,000
	To Capital Reserve A/c				50,000
	(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve)

Working Notes-

Share Forfeiture of re-issued shares
Share Forfeiture Cr.	Rs 50,000
Share Forfeiture Dr.	NIL
Balance in Share Forfeiture after re-issue	Rs 50,000

Capital Reserve = Balance in Share Forfeiture after re-issue = Rs 50,000

Answer:

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c (3×70,000)	Dr.		2,10,000
	To Equity Share Application A/c				2,10,000
	(Application money on 70,000 shares received)

	Equity Share Application A/c	Dr.		2,10,000
	To Equity Share Capital A/c (3×50,000)				1,50,000
	To Equity Share Allotment A/c (*WN2*)				60,000
	(Share Application money on 50,000 shares transferred to share capital account and excess was utilised on allotment)

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

	Bank A/c (*WN2*)	Dr.		1,88,100
	To Equity Share Allotment A/c				1,88,100
	(Allotment money received on 49,500 shares and Rs 60,000 excess money adjusted)

	Equity Share Capital A/c	Dr.		4,000
	To Equity Share Allotment A/c(*WN1*)				1,900
	To Equity Share Forfeiture A/c(*WN1*)				2,100
	(500 shares forfeited for non payment of allotment money

	Equity Share First and Final Call A/c	Dr.		99,000
	To Equity Share Capital A/c				99,000
	(Share Call money due)

	Bank A/c	Dr.		99,000
	To Equity Share First and Final Call A/c				99,000
	(Call money received on 49,000 shares)

	Equity Share Capital A/c	Dr.		5,000
	To Equity Share First and Final Call A/c				1,000
	To Equity Share Forfeiture A/c (8×500)				4,000
	(500 shares forfeited for non payment of Call money)

	Bank A/c	Dr.		7,200
	Equity Share Forfeiture A/c	Dr.		1,800
	To Equity Share Capital				9,000
	(900 shares reissued at Rs 8 per share)
	(Share call money received and Calls-in-Advance money adjusted)

	Share Forfeiture A/c (*WN3*)	Dr.		3,500
	To Capital Reserve A/c				3,500
	(Profit on forfeiture of shares transferred)

Working Note:

Question 99:

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Bank A/c (3×70,000)	Dr.		2,10,000
	To Equity Share Application A/c				2,10,000
	(Application money on 70,000 shares received)

	Equity Share Application A/c	Dr.		2,10,000
	To Equity Share Capital A/c (3×50,000)				1,50,000
	To Equity Share Allotment A/c (*WN2*)				60,000
	(Share Application money on 50,000 shares transferred to share capital account and excess was utilised on allotment)

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

	Bank A/c (*WN2*)	Dr.		1,88,100
	To Equity Share Allotment A/c				1,88,100
	(Allotment money received on 49,500 shares and Rs 60,000 excess money adjusted)

	Equity Share Capital A/c	Dr.		4,000
	To Equity Share Allotment A/c(*WN1*)				1,900
	To Equity Share Forfeiture A/c(*WN1*)				2,100
	(500 shares forfeited for non payment of allotment money

	Equity Share First and Final Call A/c	Dr.		99,000
	To Equity Share Capital A/c				99,000
	(Share Call money due)

	Bank A/c	Dr.		99,000
	To Equity Share First and Final Call A/c				99,000
	(Call money received on 49,000 shares)

	Equity Share Capital A/c	Dr.		5,000
	To Equity Share First and Final Call A/c				1,000
	To Equity Share Forfeiture A/c (8×500)				4,000
	(500 shares forfeited for non payment of Call money)

	Bank A/c	Dr.		7,200
	Equity Share Forfeiture A/c	Dr.		1,800
	To Equity Share Capital				9,000
	(900 shares reissued at Rs 8 per share)
	(Share call money received and Calls-in-Advance money adjusted)

	Share Forfeiture A/c (*WN3*)	Dr.		3,500
	To Capital Reserve A/c				3,500
	(Profit on forfeiture of shares transferred)

Working Note:

Answer:

Authorised capital 2,000 shares of Rs 100 each.

Issued 1,000 shares of Rs 100 each at premium of Rs 5

Applied 1,800 shares

Allotment made as:		Amount payable per shares as:
Applied	Allotted	Application	Rs 10
1,500	1,000	Allotment	Rs 25	(20 + 5)
300	NIL	First Call	Rs 40
			Rs 75	Called-up
		Final Call	Rs 30
1,800	1,000		Rs 105

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

	Share Application A/c	Dr.		15,000
	To Share Capital A/c				10,000
	To Share Allotment A/c				5,000
	(Share application of 1,000 shares transferred to Share Capital, Rs 5,000 adjusted on allotment)

	Share Allotment A/c	Dr.		25,000
	To Share Capital A/c				20,000
	To Securities Premium A/c				5,000
	(Share allotment due on 1,000 shares at Rs 25 each including Rs 5 premium)

	Share First Call A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(First call due on 1,000 shares at Rs 40 each)

	Securities Premium A/c	Dr.		500
	Share Capital A/c	Dr.		7,000
	To Share Forfeiture A/c				1,500
	To Share Allotment A/c				2,000
	To Share First Call A/c				4,000
	(100 shares of Rs 100 each Rs 70 called–up, forfeited for the non-payment of allotment and first call)

	Share Forfeiture A/c	Dr.		1,000
	To Share Capital A/c				1,000
	(100 shares of Rs 100 each re-issued at Rs 60 per share, Rs 70 paid-up)

	Share Forfeiture A/c	Dr.		500
	To Capital Reserve A/c				500
	(Balance in Share Forfeiture after re-issue transferred to Capital Reserve)

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

	Share Application	18,000		Share Application	3,000
	Share Allotment	18,000
	Share First Call	36,000
	Share Capital	6,000		Balance c/d	75,000
		78,000			78,000

Working Notes:

Number of share applied by Sunder	=
	=	150 shares

Sunder

Money received on application 150 × Rs 10	=	1,500
Money transferred to Share Capital 100 × Rs 10	=	1,000
Excess Money on application		500

Share allotment due 100 × Rs 25	=	2,500
Less: Excess money on application	=	500
Calls-in-Arrears on Allotment		2,000

Allotment

Allotment due on all shares 1,000 × Rs 25	=	25,000
Less: Adjustment of excess money on application	=	5,000
		20,000
Less: Calls-in-Arrears by Sunder	=	2,000
Money received on allotment	=	18,000

Capital Reserve

Share Forfeiture	Cr.	1,500
Less: Share Forfeiture	Dr.	1,000
Balance in Share Forfeiture after reissue		500

Capital Reserve = Balance in Share Forfeiture after re-issue

= Rs 500

Question 100:

Authorised capital 2,000 shares of Rs 100 each.

Issued 1,000 shares of Rs 100 each at premium of Rs 5

Applied 1,800 shares

Allotment made as:		Amount payable per shares as:
Applied	Allotted	Application	Rs 10
1,500	1,000	Allotment	Rs 25	(20 + 5)
300	NIL	First Call	Rs 40
			Rs 75	Called-up
		Final Call	Rs 30
1,800	1,000		Rs 105

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

	Share Application A/c	Dr.		15,000
	To Share Capital A/c				10,000
	To Share Allotment A/c				5,000
	(Share application of 1,000 shares transferred to Share Capital, Rs 5,000 adjusted on allotment)

	Share Allotment A/c	Dr.		25,000
	To Share Capital A/c				20,000
	To Securities Premium A/c				5,000
	(Share allotment due on 1,000 shares at Rs 25 each including Rs 5 premium)

	Share First Call A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(First call due on 1,000 shares at Rs 40 each)

	Securities Premium A/c	Dr.		500
	Share Capital A/c	Dr.		7,000
	To Share Forfeiture A/c				1,500
	To Share Allotment A/c				2,000
	To Share First Call A/c				4,000
	(100 shares of Rs 100 each Rs 70 called–up, forfeited for the non-payment of allotment and first call)

	Share Forfeiture A/c	Dr.		1,000
	To Share Capital A/c				1,000
	(100 shares of Rs 100 each re-issued at Rs 60 per share, Rs 70 paid-up)

	Share Forfeiture A/c	Dr.		500
	To Capital Reserve A/c				500
	(Balance in Share Forfeiture after re-issue transferred to Capital Reserve)

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

	Share Application	18,000		Share Application	3,000
	Share Allotment	18,000
	Share First Call	36,000
	Share Capital	6,000		Balance c/d	75,000
		78,000			78,000

Working Notes:

Number of share applied by Sunder	=
	=	150 shares

Sunder

Money received on application 150 × Rs 10	=	1,500
Money transferred to Share Capital 100 × Rs 10	=	1,000
Excess Money on application		500

Share allotment due 100 × Rs 25	=	2,500
Less: Excess money on application	=	500
Calls-in-Arrears on Allotment		2,000

Allotment

Allotment due on all shares 1,000 × Rs 25	=	25,000
Less: Adjustment of excess money on application	=	5,000
		20,000
Less: Calls-in-Arrears by Sunder	=	2,000
Money received on allotment	=	18,000

Capital Reserve

Share Forfeiture	Cr.	1,500
Less: Share Forfeiture	Dr.	1,000
Balance in Share Forfeiture after reissue		500

Capital Reserve = Balance in Share Forfeiture after re-issue

= Rs 500

Answer:

Issued Capital 1,00,000 equity shares of Rs 10 each at premium of Rs 2

Applied 2,00,000 equity shares

Payable as:	Application	Rs	2.5	per share
	Allotment	Rs	4.5	(2.5+2) per share
	First and Final Call	Rs	5	per share
		Rs	12	(10+2) per share

Books Bhamashah Company Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		5,00,000
	To Equity Share Application A/c				5,00,000
	(Share application money received for 2,00,000 shares at Rs 2.5 each)

	Equity Share Application A/c	Dr.		5,00,000
	To Equity Share Capital A/c				2,50,000
	To Equity Share Allotment A/c				2,50,000
	(Equity Share application of 1,00,000 shares transferred to Share Capital and remaining money adjusted on allotment)

	Equity Share Allotment A/c	Dr.		4,50,000
	To Equity Share Capital A/c				2,50,000
	To Securities Premium A/c				2,00,000
	(Equity Share allotment due on 1,00,000 shares at Rs 4.5 each including an amount of Rs 2 premium)

	Bank A/c	Dr.		1,99,200
	To Equity Share Allotment A/c				1,99,200
	(Share allotment received on all the shares except for 400 shares)

	Equity Share First and Final Call A/c	Dr.		5,00,000
	To Equity Share Capital A/c				5,00,000
	(First and final call due on 1,00,000 shares at Rs 5 each)

	Bank A/c	Dr.		4,98,000
	To Equity Share First and Final Call A/c				4,98,000
	First and final call received on all shares except for 400 share)

	Equity Share Capital A/c	Dr.		4,000
	Securities Premium A/c	Dr.		800
	To Share Forfeiture A/c				2,000
	To Equity Share Allotment A/c				800
	To Equity Share First and Final Call A/c				2,000
	(400 equity share forfeited for the non-payment of amount due)

	Bank A/c (320 × Rs 8)	Dr.		2,560
	Share Forfeiture A/c	Dr.		640
	To Equity Share Capital A/c				3,200
	(320 shares of Rs 10 each re-issued at Rs 8 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		960
	To Capital Reserve A/c				960
	(Share Forfeiture of 320 re-issued shares, transferred to Capital Reserve)

Working Notes-

Number of shares allotted to Ranu	=
	=	400 shares

Ranu
Money received on application (800 shares × Rs 2.5)	=	Rs 2,000
Less: Money transferred to Shares Capital (400 shares × Rs 2.5)	=	Rs 1,000
Excess money received on application	=	1,000

Allotment due Share × Rs 4.5	=	1,800
Less: Excess money received on application	=	1,000
Calls-in-Arrears on allotment	=	800

Share Allotment

Share allotment due on all shares	=	4,50,000
Less: Share application adjusted	=	2,50,000
Less: Calls-in-Arrears	=	800
Money received on allotment		1,99,200

Number of shares re-issued =

Capital Reserve of 320 shares

Share Forfeiture Cr =

Share Forfeiture	Cr.	Rs 5	per share
Share Forfeiture	Dr.	Rs 2	per share
Balance in Share Forfeiture after re-issue	Cr.	Rs 3	per share

Capital Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares re-issued

= Rs 3 × 320 shares

= Rs 960

Question 101:

Issued Capital 1,00,000 equity shares of Rs 10 each at premium of Rs 2

Applied 2,00,000 equity shares

Payable as:	Application	Rs	2.5	per share
	Allotment	Rs	4.5	(2.5+2) per share
	First and Final Call	Rs	5	per share
		Rs	12	(10+2) per share

Books Bhamashah Company Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		5,00,000
	To Equity Share Application A/c				5,00,000
	(Share application money received for 2,00,000 shares at Rs 2.5 each)

	Equity Share Application A/c	Dr.		5,00,000
	To Equity Share Capital A/c				2,50,000
	To Equity Share Allotment A/c				2,50,000
	(Equity Share application of 1,00,000 shares transferred to Share Capital and remaining money adjusted on allotment)

	Equity Share Allotment A/c	Dr.		4,50,000
	To Equity Share Capital A/c				2,50,000
	To Securities Premium A/c				2,00,000
	(Equity Share allotment due on 1,00,000 shares at Rs 4.5 each including an amount of Rs 2 premium)

	Bank A/c	Dr.		1,99,200
	To Equity Share Allotment A/c				1,99,200
	(Share allotment received on all the shares except for 400 shares)

	Equity Share First and Final Call A/c	Dr.		5,00,000
	To Equity Share Capital A/c				5,00,000
	(First and final call due on 1,00,000 shares at Rs 5 each)

	Bank A/c	Dr.		4,98,000
	To Equity Share First and Final Call A/c				4,98,000
	First and final call received on all shares except for 400 share)

	Equity Share Capital A/c	Dr.		4,000
	Securities Premium A/c	Dr.		800
	To Share Forfeiture A/c				2,000
	To Equity Share Allotment A/c				800
	To Equity Share First and Final Call A/c				2,000
	(400 equity share forfeited for the non-payment of amount due)

	Bank A/c (320 × Rs 8)	Dr.		2,560
	Share Forfeiture A/c	Dr.		640
	To Equity Share Capital A/c				3,200
	(320 shares of Rs 10 each re-issued at Rs 8 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		960
	To Capital Reserve A/c				960
	(Share Forfeiture of 320 re-issued shares, transferred to Capital Reserve)

Working Notes-

Number of shares allotted to Ranu	=
	=	400 shares

Ranu
Money received on application (800 shares × Rs 2.5)	=	Rs 2,000
Less: Money transferred to Shares Capital (400 shares × Rs 2.5)	=	Rs 1,000
Excess money received on application	=	1,000

Allotment due Share × Rs 4.5	=	1,800
Less: Excess money received on application	=	1,000
Calls-in-Arrears on allotment	=	800

Share Allotment

Share allotment due on all shares	=	4,50,000
Less: Share application adjusted	=	2,50,000
Less: Calls-in-Arrears	=	800
Money received on allotment		1,99,200

Number of shares re-issued =

Capital Reserve of 320 shares

Share Forfeiture Cr =

Share Forfeiture	Cr.	Rs 5	per share
Share Forfeiture	Dr.	Rs 2	per share
Balance in Share Forfeiture after re-issue	Cr.	Rs 3	per share

Capital Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares re-issued

= Rs 3 × 320 shares

= Rs 960

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 102:

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:

Issued capital 15,000 of Rs 100 each at a premium Rs 15 per share

Applied Share 18,000

Allotment made as:
Applied	Allotted	Payable as:
800	–	Application	Rs 75	(60 + 15) per share
2,200	2,200	Allotment	Rs 20	per share
15,000	12,800	First and Final Call	Rs 20	per share
18,000	15,000		Rs 115	(10 0 + 15) per share

Books of X Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2013
	Bank A/c	Dr.		13,50,000
	To Equity Share Application				13,50,000
	(Share application money received for 18,000 shares at Rs 75 per share including Rs 15 premium)

April 01	Equity Share Application A/c	Dr.		13,50,000
	To Equity Share Capital A/c				9,00,000
	To Securities Premium A/c				2,25,000
	To Equity Share Allotment A/c				1,65,000
	To Bank A/c				60,000
	(Application money of 15,000 share transferred to Share Capital, Rs 1,65,000 adjusted on allotment and the remaining Rs 60,000 refunded)

April 30	Equity Share Allotment A/c	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(Share allotment due on 15,000 shares at Rs 20 each)

	Bank A/c	Dr.		1,35,000
	To Equity Share Allotment A/c				1,35,000
	(Share allotment money received)

May 31	Equity Share First and Final Call A/c	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(First and final call due on 15,000 shares at Rs 20 each)

	Bank A/c	Dr.		2,92,000
	To Share First and Final Call A/c				2,92,000
	(First and Final call received on 14,600 shares)

July 31	Equity Share Capital A/c	Dr.		40,000
	To Share Forfeiture A/c (400 shares × Rs 80)				32,000
	To Equity Share First and Final Call A/c				8,000
	(400 shares of Rs 100 each forfeited for the non-payment of Rs 20 per share)

Sep 03	Bank A/c	Dr.		36,000
	Share Forfeiture A/c (400 shares × Rs 10)	Dr.		4,000
	To Equity Share Capital A/c				40,000
	(400 shares of Rs 100 each re-issued at Rs 90 per share fully paid-up)

	Share Forfeiture A/c	Dr.		28,000
	To Capital Reserve A/c				28,000
	(Balance in Share Forfeiture transferred to Capital Reserve)

Working Note

Share Forfeiture Credit (at the time of forfeiture of shares)	32,000
Less: Share Forfeiture Debit (at the time of re-issue shares)	4,000
Balance in share forfeiture after re-issue of shares	28,000

Capital Reserve = Balance in Share Forfeiture of reissued shares

= Rs 28,000

Question 103:

Issued capital 15,000 of Rs 100 each at a premium Rs 15 per share

Applied Share 18,000

Allotment made as:
Applied	Allotted	Payable as:
800	–	Application	Rs 75	(60 + 15) per share
2,200	2,200	Allotment	Rs 20	per share
15,000	12,800	First and Final Call	Rs 20	per share
18,000	15,000		Rs 115	(10 0 + 15) per share

Books of X Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2013
	Bank A/c	Dr.		13,50,000
	To Equity Share Application				13,50,000
	(Share application money received for 18,000 shares at Rs 75 per share including Rs 15 premium)

April 01	Equity Share Application A/c	Dr.		13,50,000
	To Equity Share Capital A/c				9,00,000
	To Securities Premium A/c				2,25,000
	To Equity Share Allotment A/c				1,65,000
	To Bank A/c				60,000
	(Application money of 15,000 share transferred to Share Capital, Rs 1,65,000 adjusted on allotment and the remaining Rs 60,000 refunded)

April 30	Equity Share Allotment A/c	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(Share allotment due on 15,000 shares at Rs 20 each)

	Bank A/c	Dr.		1,35,000
	To Equity Share Allotment A/c				1,35,000
	(Share allotment money received)

May 31	Equity Share First and Final Call A/c	Dr.		3,00,000
	To Equity Share Capital A/c				3,00,000
	(First and final call due on 15,000 shares at Rs 20 each)

	Bank A/c	Dr.		2,92,000
	To Share First and Final Call A/c				2,92,000
	(First and Final call received on 14,600 shares)

July 31	Equity Share Capital A/c	Dr.		40,000
	To Share Forfeiture A/c (400 shares × Rs 80)				32,000
	To Equity Share First and Final Call A/c				8,000
	(400 shares of Rs 100 each forfeited for the non-payment of Rs 20 per share)

Sep 03	Bank A/c	Dr.		36,000
	Share Forfeiture A/c (400 shares × Rs 10)	Dr.		4,000
	To Equity Share Capital A/c				40,000
	(400 shares of Rs 100 each re-issued at Rs 90 per share fully paid-up)

	Share Forfeiture A/c	Dr.		28,000
	To Capital Reserve A/c				28,000
	(Balance in Share Forfeiture transferred to Capital Reserve)

Working Note

Share Forfeiture Credit (at the time of forfeiture of shares)	32,000
Less: Share Forfeiture Debit (at the time of re-issue shares)	4,000
Balance in share forfeiture after re-issue of shares	28,000

Capital Reserve = Balance in Share Forfeiture of reissued shares

= Rs 28,000

Answer:

Issued 1,000 equity shares of Rs 10 each

Applied 1,800 shares

Allotment made as:		Amount payable per shares as:
Applied	Allotted		Application	Rs 3
40,000	30,000		Allotment	Rs 4
35,000	20,000		First Call	Rs 3
1,800	1,000			Rs 10

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

	Bank A/c	Dr.		2,25,000
	To Equity Share Application A/c				2,25,000
	(Share application money received for 75,000 shares at Rs 3 each)

	Equity Share Application A/c	Dr.		2,25,000
	To Equity Share Capital A/c				1,50,000
	To Equity Share Allotment A/c				75,000
	(Application money of 50,000 shares transferred to share capital and the remaining amount adjusted on allotment)

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

	Bank A/c	Dr.		1,21,400
	To Equity Share Allotment A/c				1,21,400
	(Share allotment received on 48,800 shares after adjusting the excess money on application)

	Equity Share Capital A/c (1,200 × Rs 7)	Dr.		8,400
	To Share Forfeiture A/c				4,800
	To Equity Share Allotment A/c				3,600
	(1,200 shares of Rs 10 each Rs 7 called-up forfeited for the non-payment of allotment)

	Equity Share First and Final Call A/c	Dr.		1,46,400
	To Equity Share Capital A/c				1,46,400
	(First and final call due on 48,800 shares at Rs 3 each)

	Bank A/c	Dr.		1,45,200
	To Equity Share First and Final Call A/c				1,45,200
	(Share first and call received 48,800 shares at Rs 3 each)

	Equity Share Capital A/c	Dr.		4,000
	To Share Forfeiture A/c (400 × Rs 7)				2,800
	To Equity Shares First and Final Call A/c				1,200
	(400 shares forfeited for the non-payment of first and final call)

	Bank A/c	Dr.		8,000
	Share Forfeiture A/c	Dr.		2,000
	To Equity Share Capital A/c				10,000
	(1,000 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		3,200
	To Capital Reserve A/c				3,200
	(Balance of 1,000 re-issued shares in Share Forfeiture Account transferred to Capital Reserve Account)

Working Notes-

Rumu’s Share

Number of shares applied = = 1,600 shares

Money received on Application 1,600 shares × Rs 3	=	Rs 4,800
Money adjusted on Application 1,200 Shares × Rs 3	=	Rs 3,600
Excess on Application		Rs 1,200

Allotment due on 1,200 shares × Rs 4	=	4,800
Less: Excess money on Application	=	1,200
Calls-in-Arrears on Allotment		3,600

Share Allotment

Share Allotment due 50,000 shares × Rs 4	=	2,00,000
Less: Excess money on application	=	75,000
		1,25,000
Less: Calls-in-Arrears on Allotment	=	3,600
Money received on Allotment	=	1,21,400

Shamu’s Shares

Number of shares allotted to Shamu

First and Final Call

First and Final Call due; 48,800 shares × Rs 3	=	1,46,400
Less: Calls-in-Arrears by Shamu; 400 shares × Rs 3	=	1,200
Money received on of First and Final Call		1,45,200

Capital Reserve

Shares re-issued out the shares forfeited from Ramu = 1,000 shares − Shamu’s shares

= 1,000 − 400

= 600 shares

on re-isssue Ramu’s shares:

Capital Reverse on re-issue of 600 shares forfeited from Ramu
Share Forfeiture Cr.	=	Rs	4
Share Forfeiture Dr.	=	Rs	2
Share Forfeiture after re-issued		Rs	2	per share

Capital Reserve after re-issue of 600 shares = Share Forfeiture after re-issue (per share) × 600 shares

= Rs 2 × 600

= Rs 1,200

on re-isssue Shamu’s shares:

Share Forfeiture	Cr.	Rs 7
Share Forfeiture	Dr.	Rs 2
Share Forfeiture after re-issue		Rs 5	per share

Capital Reserve after re-issue of 400 shares = Share Forfeiture after re-issue (per share) × 600 shares

= Rs 5 × 400

= Rs 2,000

Total amount of Capital Reserve = Capital Reserve of 600 shares + Capital Reserve of 400 shares

Total amount of Capital Reserve	= Capital Reserve of 600 shares + Capital Reserve of 400 shares
	= Rs 1,200 + Rs 2,000
	= Rs 3,200

Question 104:

Issued 1,000 equity shares of Rs 10 each

Applied 1,800 shares

Allotment made as:		Amount payable per shares as:
Applied	Allotted		Application	Rs 3
40,000	30,000		Allotment	Rs 4
35,000	20,000		First Call	Rs 3
1,800	1,000			Rs 10

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

	Bank A/c	Dr.		2,25,000
	To Equity Share Application A/c				2,25,000
	(Share application money received for 75,000 shares at Rs 3 each)

	Equity Share Application A/c	Dr.		2,25,000
	To Equity Share Capital A/c				1,50,000
	To Equity Share Allotment A/c				75,000
	(Application money of 50,000 shares transferred to share capital and the remaining amount adjusted on allotment)

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

	Bank A/c	Dr.		1,21,400
	To Equity Share Allotment A/c				1,21,400
	(Share allotment received on 48,800 shares after adjusting the excess money on application)

	Equity Share Capital A/c (1,200 × Rs 7)	Dr.		8,400
	To Share Forfeiture A/c				4,800
	To Equity Share Allotment A/c				3,600
	(1,200 shares of Rs 10 each Rs 7 called-up forfeited for the non-payment of allotment)

	Equity Share First and Final Call A/c	Dr.		1,46,400
	To Equity Share Capital A/c				1,46,400
	(First and final call due on 48,800 shares at Rs 3 each)

	Bank A/c	Dr.		1,45,200
	To Equity Share First and Final Call A/c				1,45,200
	(Share first and call received 48,800 shares at Rs 3 each)

	Equity Share Capital A/c	Dr.		4,000
	To Share Forfeiture A/c (400 × Rs 7)				2,800
	To Equity Shares First and Final Call A/c				1,200
	(400 shares forfeited for the non-payment of first and final call)

	Bank A/c	Dr.		8,000
	Share Forfeiture A/c	Dr.		2,000
	To Equity Share Capital A/c				10,000
	(1,000 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		3,200
	To Capital Reserve A/c				3,200
	(Balance of 1,000 re-issued shares in Share Forfeiture Account transferred to Capital Reserve Account)

Working Notes-

Rumu’s Share

Number of shares applied = = 1,600 shares

Money received on Application 1,600 shares × Rs 3	=	Rs 4,800
Money adjusted on Application 1,200 Shares × Rs 3	=	Rs 3,600
Excess on Application		Rs 1,200

Allotment due on 1,200 shares × Rs 4	=	4,800
Less: Excess money on Application	=	1,200
Calls-in-Arrears on Allotment		3,600

Share Allotment

Share Allotment due 50,000 shares × Rs 4	=	2,00,000
Less: Excess money on application	=	75,000
		1,25,000
Less: Calls-in-Arrears on Allotment	=	3,600
Money received on Allotment	=	1,21,400

Shamu’s Shares

Number of shares allotted to Shamu

First and Final Call

First and Final Call due; 48,800 shares × Rs 3	=	1,46,400
Less: Calls-in-Arrears by Shamu; 400 shares × Rs 3	=	1,200
Money received on of First and Final Call		1,45,200

Capital Reserve

Shares re-issued out the shares forfeited from Ramu = 1,000 shares − Shamu’s shares

= 1,000 − 400

= 600 shares

on re-isssue Ramu’s shares:

Capital Reverse on re-issue of 600 shares forfeited from Ramu
Share Forfeiture Cr.	=	Rs	4
Share Forfeiture Dr.	=	Rs	2
Share Forfeiture after re-issued		Rs	2	per share

Capital Reserve after re-issue of 600 shares = Share Forfeiture after re-issue (per share) × 600 shares

= Rs 2 × 600

= Rs 1,200

on re-isssue Shamu’s shares:

Share Forfeiture	Cr.	Rs 7
Share Forfeiture	Dr.	Rs 2
Share Forfeiture after re-issue		Rs 5	per share

Capital Reserve after re-issue of 400 shares = Share Forfeiture after re-issue (per share) × 600 shares

= Rs 5 × 400

= Rs 2,000

Total amount of Capital Reserve = Capital Reserve of 600 shares + Capital Reserve of 400 shares

Total amount of Capital Reserve	= Capital Reserve of 600 shares + Capital Reserve of 400 shares
	= Rs 1,200 + Rs 2,000
	= Rs 3,200

Answer:

Issued capital 40,000 shares of Rs 10 each at premium of Rs 2

Applied Rs 60,000 shares

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 2
48,000	40,000	Allotment	Rs 5	(3+2)
12,000	NIL	First Call	Rs 2
60,000	40,000	Second and Final Call	Rs 3
			Rs12	(10+2) per share

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

	Bank A/c	Dr.		1,20,000
	To Equity Share Application A/c				1,20,000
	(Application money received for 60,000 shares at Rs 2 each)

	Equity Share Application A/c	Dr.		1,20,000
	To Equity Share Capital A/c				80,000
	To Equity Share Allotment A/c				16,000
	To Bank A/c				24,000
	(Share application of 40,000 shares transferred to share capital, Rs 16,000 adjusted on allotment and remaining Rs 24,000 refunded)

	Equity Share Allotment A/c	Dr.		2,00,000
	To Equity Share Capital A/c				1,20,000
	To Securities Premium A/c				80,000
	(Share allotment due on 40,000 shares at Rs 5 each including Rs 2 premium)

	Bank A/c	Dr.		1,76,640
	To Equity Share Allotment A/c				1,76,640
	(Share allotment received on all shares except on 1,600 Shares held by Ram)

	Equity Share First Call A/c	Dr.		80,000
	To Equity Share Capital A/c				80,000
	(First call due on 40,000 shares at Rs 2 each)

	Bank A/c	Dr.		72,800
	To Equity Share First Call A/c				72,800
	(First call received on 36,400 shares and holders of 3,600 failed to pay it)

	Equity Share Second and Final Call A/c	Dr.		1,20,000
	To Equity Share Capital A/c				1,20,000
	(Second and final call due on 40,000 shares at Rs 3 each)

	Bank A/c	Dr.		1,09,200
	To Equity Share second and Final Call A/c				1,09,200
	(Second and final call received on 36,400 shares and holders of 3,600 shares failed to pay it)

	Equity Share Capital A/c	Dr.		16,000
	Securities Premium A/c	Dr.		3,200
	To Share Forfeiture A/c				3,840
	To Equity Share Allotment A/c				7,360
	To Equity Share first Call A/c				3,200
	To Equity Share Second and Final Call A/c				4,800
	(1600 shares held by Ram forfeited for non-payment amount due including premium)

	Equity Share Capital A/c	Dr.		20,000
	To Equity Share Forfeiture A/c				10,000
	To Equity Share First Call A/c				4,000
	To Equity Share Second and Final Call A/c				6,000
	(2,000 shares held by Shyam forfeited for non-payment of amount due)

	Bank A/c	Dr.		28,800
	Share Forfeiture A/c	Dr.		7,200
	To Equity Share Capital A/c				36,000
	(3,600 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		6,640
	To Capital Reserve A/c				6,640
	(Balance in Share Forfeiture transferred to Capital Reserve)

Working Notes:

Ram’s shares

Number of shares applied by Ram

Money received on Application (1,920 shares × Rs 2)	=	Rs 3,840
Less: Application money transferred to Share Capital (1,600 shares × Rs 2)	=	Rs 3,200
Excess money on Application	=	Rs 640

Share Allotment due (1,600 shares × Rs 5)	Rs	8,000
Less: Excess money on Application	Rs	640
Calls-in-Arrears on Allotment	Rs	7,360

Share Allotment

Share Allotment due (40,000 shares × Rs 5)	2,00,000
Less: Excess money on Application	16,000
	1,84,000
Less: Calls-in-Arrears by Ram	7,360
Money received on Allotment	1,76,640

Share First Call

Share First Call due (40,000 shares × Rs 2)	80,000
Less: Calls-in-Arrears by Ram and Shyam (3,600 shares ×Rs 2)	7,200
Money received on First Call	72,800

Share Final Call

Share Final Call due 40,000 Shares × Rs 3	1,20,000
Less: Calls-in-Arrears by Ram and Shyam (3,600 shares × Rs 3)	10,800
Money received on Second and Final Call	1,09,200

Capital Reserve

Share Forfeiture on Ram’s shares (money received on application)	3,840
Share Forfeiture on Shyam’s shares (2,000 shares × Rs 5)	10,000
	13,840	Cr.
Less: Share Forfeiture	7,200	Dr.
Capital Reserve	6,640

Question 105:

Issued capital 40,000 shares of Rs 10 each at premium of Rs 2

Applied Rs 60,000 shares

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 2
48,000	40,000	Allotment	Rs 5	(3+2)
12,000	NIL	First Call	Rs 2
60,000	40,000	Second and Final Call	Rs 3
			Rs12	(10+2) per share

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

	Bank A/c	Dr.		1,20,000
	To Equity Share Application A/c				1,20,000
	(Application money received for 60,000 shares at Rs 2 each)

	Equity Share Application A/c	Dr.		1,20,000
	To Equity Share Capital A/c				80,000
	To Equity Share Allotment A/c				16,000
	To Bank A/c				24,000
	(Share application of 40,000 shares transferred to share capital, Rs 16,000 adjusted on allotment and remaining Rs 24,000 refunded)

	Equity Share Allotment A/c	Dr.		2,00,000
	To Equity Share Capital A/c				1,20,000
	To Securities Premium A/c				80,000
	(Share allotment due on 40,000 shares at Rs 5 each including Rs 2 premium)

	Bank A/c	Dr.		1,76,640
	To Equity Share Allotment A/c				1,76,640
	(Share allotment received on all shares except on 1,600 Shares held by Ram)

	Equity Share First Call A/c	Dr.		80,000
	To Equity Share Capital A/c				80,000
	(First call due on 40,000 shares at Rs 2 each)

	Bank A/c	Dr.		72,800
	To Equity Share First Call A/c				72,800
	(First call received on 36,400 shares and holders of 3,600 failed to pay it)

	Equity Share Second and Final Call A/c	Dr.		1,20,000
	To Equity Share Capital A/c				1,20,000
	(Second and final call due on 40,000 shares at Rs 3 each)

	Bank A/c	Dr.		1,09,200
	To Equity Share second and Final Call A/c				1,09,200
	(Second and final call received on 36,400 shares and holders of 3,600 shares failed to pay it)

	Equity Share Capital A/c	Dr.		16,000
	Securities Premium A/c	Dr.		3,200
	To Share Forfeiture A/c				3,840
	To Equity Share Allotment A/c				7,360
	To Equity Share first Call A/c				3,200
	To Equity Share Second and Final Call A/c				4,800
	(1600 shares held by Ram forfeited for non-payment amount due including premium)

	Equity Share Capital A/c	Dr.		20,000
	To Equity Share Forfeiture A/c				10,000
	To Equity Share First Call A/c				4,000
	To Equity Share Second and Final Call A/c				6,000
	(2,000 shares held by Shyam forfeited for non-payment of amount due)

	Bank A/c	Dr.		28,800
	Share Forfeiture A/c	Dr.		7,200
	To Equity Share Capital A/c				36,000
	(3,600 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		6,640
	To Capital Reserve A/c				6,640
	(Balance in Share Forfeiture transferred to Capital Reserve)

Working Notes:

Ram’s shares

Number of shares applied by Ram

Money received on Application (1,920 shares × Rs 2)	=	Rs 3,840
Less: Application money transferred to Share Capital (1,600 shares × Rs 2)	=	Rs 3,200
Excess money on Application	=	Rs 640

Share Allotment due (1,600 shares × Rs 5)	Rs	8,000
Less: Excess money on Application	Rs	640
Calls-in-Arrears on Allotment	Rs	7,360

Share Allotment

Share Allotment due (40,000 shares × Rs 5)	2,00,000
Less: Excess money on Application	16,000
	1,84,000
Less: Calls-in-Arrears by Ram	7,360
Money received on Allotment	1,76,640

Share First Call

Share First Call due (40,000 shares × Rs 2)	80,000
Less: Calls-in-Arrears by Ram and Shyam (3,600 shares ×Rs 2)	7,200
Money received on First Call	72,800

Share Final Call

Share Final Call due 40,000 Shares × Rs 3	1,20,000
Less: Calls-in-Arrears by Ram and Shyam (3,600 shares × Rs 3)	10,800
Money received on Second and Final Call	1,09,200

Capital Reserve

Share Forfeiture on Ram’s shares (money received on application)	3,840
Share Forfeiture on Shyam’s shares (2,000 shares × Rs 5)	10,000
	13,840	Cr.
Less: Share Forfeiture	7,200	Dr.
Capital Reserve	6,640

Answer:

Issued Shares – 60,000 of Rs 10 each at a discount Re 1

Applied Shares – 90,000

Allotment made as:
Applied	Allotted
20,000	NIL	Payable as:
35,000	35,000	Application	Rs 3	per share
15,000	10,000	Allotment	Rs 2	(3 – 1) per share
20,000	15,000	First and Final Call	Rs 4	per share
90,000	60,000		Rs 9	(10 – 1) per share

Books of M/s Blue Chips Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		2,70,000
	To Share Application A/c				2,70,000
	(Share application money received for 90,000 shares at Rs 3 each)

	Share Application A/c	Dr.		2,70,000
	To Share Capital A/c				1,80,000
	To Share Allotment A/c				30,000
	To Bank A/c				60,000
	(Application money of 60,000 shares at Rs 3 per share transferred to share capital, Rs 30,000 adjusted on allotment and remaining Rs 60,000 refunded)

	Share Allotment A/c	Dr.		1,20,000
	Discount on Issue of Shares A/c	Dr.		60,000
	To Share Capital A/c				1,80,000
	(Share allotment due 20,000 shares at Rs 2 per share after deducting discount Re 1)

	Bank A/c	Dr.		89,100
	To Share Allotment A/c				89,100
	(Allotment money received on 59,100 shares)

	Share First and Final Call A/c	Dr.		2,40,000
	To Equity Share Capital A/c				2,40,000
	(First and final call due on 60,000 shares at Rs 4 each)

	Bank A/c	Dr.		2,36,400
	To Share First and Final Call A/c				2,36,400
	(First and final call received on 59,100 shares)

	Share Capital A/c	Dr.		9,000
	To Share Forfeiture A/c				3,600
	To Discount on Issue of Shares A/c				900
	To Share Allotment A/c				900
	To Share First and Final Call A/c				3,600
	(900 share of Rs 10 each forfeited for the non-payment amount due)

	Bank A/c	Dr.		3,000
	Discount on Issue of Shares A/c	Dr.		500
	Share Forfeiture A/c	Dr.		1,500
	To Share Capital A/c				5,000
	(500 shares of Rs 10 each which had originally issued at discount Re 1, reissued at Rs 6 per share)

	Share Forfeiture A/c	Dr.		500
	To Capital Reserve A/c				500
	(Transfer of profit on reissue)

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

M/s Blue Chips Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	5,97,600
b. Reserves and Surplus	2	(11,420)
2. Non-Current Liabilities
3. Current Liabilities
Total		5,86,180

II. Assets
1. Non-Current Assets
a. Other Non-Current Assets	3	35,760
2. Current Assets	4	5,50,420
Total		5,86,180

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	……. shares of Rs 10 each		-
	Issued Share Capital
	60,000 shares of Rs 10 each		6,00,000
	Subscribed, Called-up and Paid-up Share Capital
	59,600 shares of Rs 10 each	5,96,000
	Add: Shares Forfeited	1,600	5,97,600

2	Reserves and Surplus
	Capital Reserve		500
	Statement of Profit & Loss		11,920
			11,420

3	Other Non-Current Assets
	Unamortised Discount on Issue of Shares		35,760

4	Current Assets
	Cash at Bank		5,38,500
	Unamortised Discount on Issue of Shares		11,920
			5,50,420

Working Notes:

Mohan’s Shares

Number of shares applied

Money received on Application on (1,200 shares × Rs 3)	=	3,600
Less: Money transferred to Share Capital (900 shares × Rs 3)	=	2,700
Excess money on application		900

Allotment due on 900 shares × Rs 2	=	Rs	1,800
Less: Excess money on Application	=	Rs	900
Calls-in-Arrears on Allotment			900

Share Allotment

Allotment due (60,000 Shares × Rs 2)	1,20,000
Less: Money adjusted on allotment	30,000
Less: Calls-in-Arrears on Mohan	900
	89,100

Capital Reserve

Share forfeiture of re-issued shares

Share Forfeiture (Cr.) (3600/900)	=	Rs 4 per share
Share Forfeiture (Dr.)	=	Rs 3 per share	(Loss on re-issue excluding discount Re 1)
Share Forfeiture after re-issue	=	Re 1 per share

Capital Reserve = Share Forfeiture after re-issue (per share) × No. of shares re-issued

= Re 1 × 500 shares = Rs 500

Discount on Issue

Discount on Issue of Shares can be written off against Securities Premium or Statement of Profit & Loss within 3 or 5 years.
In the above solution, the Discount is written off in 5 years i.e. Rs 11,920 [59,600 / 5] for each year and has been shown as a negative balance in the Reserves and Surplus. The balance of Discount i.e. 47,680 [59,600 – 11,920] is bifurcated as Current and Non-Current Assets.
The answer given in the book is different from that of ours' as the amount of discount has been written-off as per the Revised Schedule VI of Companies Accounts.

Question 106:

Issued Shares – 60,000 of Rs 10 each at a discount Re 1

Applied Shares – 90,000

Allotment made as:
Applied	Allotted
20,000	NIL	Payable as:
35,000	35,000	Application	Rs 3	per share
15,000	10,000	Allotment	Rs 2	(3 – 1) per share
20,000	15,000	First and Final Call	Rs 4	per share
90,000	60,000		Rs 9	(10 – 1) per share

Books of M/s Blue Chips Limited Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		2,70,000
	To Share Application A/c				2,70,000
	(Share application money received for 90,000 shares at Rs 3 each)

	Share Application A/c	Dr.		2,70,000
	To Share Capital A/c				1,80,000
	To Share Allotment A/c				30,000
	To Bank A/c				60,000
	(Application money of 60,000 shares at Rs 3 per share transferred to share capital, Rs 30,000 adjusted on allotment and remaining Rs 60,000 refunded)

	Share Allotment A/c	Dr.		1,20,000
	Discount on Issue of Shares A/c	Dr.		60,000
	To Share Capital A/c				1,80,000
	(Share allotment due 20,000 shares at Rs 2 per share after deducting discount Re 1)

	Bank A/c	Dr.		89,100
	To Share Allotment A/c				89,100
	(Allotment money received on 59,100 shares)

	Share First and Final Call A/c	Dr.		2,40,000
	To Equity Share Capital A/c				2,40,000
	(First and final call due on 60,000 shares at Rs 4 each)

	Bank A/c	Dr.		2,36,400
	To Share First and Final Call A/c				2,36,400
	(First and final call received on 59,100 shares)

	Share Capital A/c	Dr.		9,000
	To Share Forfeiture A/c				3,600
	To Discount on Issue of Shares A/c				900
	To Share Allotment A/c				900
	To Share First and Final Call A/c				3,600
	(900 share of Rs 10 each forfeited for the non-payment amount due)

	Bank A/c	Dr.		3,000
	Discount on Issue of Shares A/c	Dr.		500
	Share Forfeiture A/c	Dr.		1,500
	To Share Capital A/c				5,000
	(500 shares of Rs 10 each which had originally issued at discount Re 1, reissued at Rs 6 per share)

	Share Forfeiture A/c	Dr.		500
	To Capital Reserve A/c				500
	(Transfer of profit on reissue)

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

M/s Blue Chips Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	5,97,600
b. Reserves and Surplus	2	(11,420)
2. Non-Current Liabilities
3. Current Liabilities
Total		5,86,180

II. Assets
1. Non-Current Assets
a. Other Non-Current Assets	3	35,760
2. Current Assets	4	5,50,420
Total		5,86,180

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	……. shares of Rs 10 each		-
	Issued Share Capital
	60,000 shares of Rs 10 each		6,00,000
	Subscribed, Called-up and Paid-up Share Capital
	59,600 shares of Rs 10 each	5,96,000
	Add: Shares Forfeited	1,600	5,97,600

2	Reserves and Surplus
	Capital Reserve		500
	Statement of Profit & Loss		11,920
			11,420

3	Other Non-Current Assets
	Unamortised Discount on Issue of Shares		35,760

4	Current Assets
	Cash at Bank		5,38,500
	Unamortised Discount on Issue of Shares		11,920
			5,50,420

Working Notes:

Mohan’s Shares

Number of shares applied

Money received on Application on (1,200 shares × Rs 3)	=	3,600
Less: Money transferred to Share Capital (900 shares × Rs 3)	=	2,700
Excess money on application		900

Allotment due on 900 shares × Rs 2	=	Rs	1,800
Less: Excess money on Application	=	Rs	900
Calls-in-Arrears on Allotment			900

Share Allotment

Allotment due (60,000 Shares × Rs 2)	1,20,000
Less: Money adjusted on allotment	30,000
Less: Calls-in-Arrears on Mohan	900
	89,100

Capital Reserve

Share forfeiture of re-issued shares

Share Forfeiture (Cr.) (3600/900)	=	Rs 4 per share
Share Forfeiture (Dr.)	=	Rs 3 per share	(Loss on re-issue excluding discount Re 1)
Share Forfeiture after re-issue	=	Re 1 per share

Capital Reserve = Share Forfeiture after re-issue (per share) × No. of shares re-issued

= Re 1 × 500 shares = Rs 500

Discount on Issue

Discount on Issue of Shares can be written off against Securities Premium or Statement of Profit & Loss within 3 or 5 years.
In the above solution, the Discount is written off in 5 years i.e. Rs 11,920 [59,600 / 5] for each year and has been shown as a negative balance in the Reserves and Surplus. The balance of Discount i.e. 47,680 [59,600 – 11,920] is bifurcated as Current and Non-Current Assets.
The answer given in the book is different from that of ours' as the amount of discount has been written-off as per the Revised Schedule VI of Companies Accounts.

Answer:

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

Applied share 65,000

Allotment made as		Payable as:
Applied	Alloted	Application	Rs 5	(3 + 2)
60,000	50,000	Allotment	Rs 4
5,000	NIL	First and Final Call	Rs 3
65,000	50,000		Rs 12	(10 + 2) per share

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

	Equity Share Application		3,25,000		Equity Share Application		25,000
	Equity Share Allotment		1,47,900
	Equity Share First and Final Call		1,47,900		Balance c/d		6,02,100
	Equity Share Capital		6,300
			6,27,100				6,27,100

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

	Equity Share Application A/c	Dr.		3,00,000
	To Equity Share Capital A/c				1,50,000
	To Securities Premium				1,00,000
	To Equity Share Allotment A/c				50,000
	(Share application money of 50,000 shares transferred to share capital at Rs 3 each and to premium Rs 2 each and Rs 50,000 adjusted on allotment)

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

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

	Equity Share Capital A/c	Dr.		7,000
	To Share Forfeiture A/c				2,800
	To Equity Share Allotment A/c				2,100
	To Equity Share First and Final A/c				2,100
	(700 shares of Rs 10 each forfeited for the non-payment of amount due)

	Share Forfeiture A/c	Dr.		700
	To Equity Share Capital A/c				700
	(Loss on issue Re 1 on 700 shares charged from the Share Forfeiture Account)

	Share Forfeiture A/c	Dr.		2,100
	To Capital Reserve A/c				2,100
	(Balance in Share Forfeiture after re-issue transferred to Capital Reserve)

Working Notes-

Mr. Sharma’s Share

Number of shares applied by Mr Sharma

Money received on Application 840 shares × Rs 5	=	4,200
Less: Money transferred to Share Capital 700 shares × Rs 3	=	2,100
Less: Securities Premium 700 shares × Rs 2	=	1,400
Excess money on Application		700

Allotment due 700 shares × Rs 4	=	2,800
Less: Excess money on Application		700
Calls-in Arrears on Allotment		2,100

Share Allotment

Share Allotment due 50,000 × Rs 4	=	2,00,0000
Less: Excess money on Application	=	50,000
Less: Calls-in-Arrears	=	2,100
Money received on Application		1,47,900

Share First and Final Call

Share First and Final Call due 50,000 Shares × Rs 3	=	1,50,000
Less: Calls in Arrears on 700 shares × Rs 3	=	2,100
Money received on First and Final Call		1,47,900

Capital Reserve

Money received on Application from Mr Sharma		=	Rs 4,200
Less: Securities Premium 700 × Rs 2		=	Rs 1,400
Share Forfeiture	Cr.		2,800
Share Forfeiture 700 × Re 1	Dr.		700
Capital Reserve			2,100

Question 107:

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

Applied share 65,000

Allotment made as		Payable as:
Applied	Alloted	Application	Rs 5	(3 + 2)
60,000	50,000	Allotment	Rs 4
5,000	NIL	First and Final Call	Rs 3
65,000	50,000		Rs 12	(10 + 2) per share

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

	Equity Share Application		3,25,000		Equity Share Application		25,000
	Equity Share Allotment		1,47,900
	Equity Share First and Final Call		1,47,900		Balance c/d		6,02,100
	Equity Share Capital		6,300
			6,27,100				6,27,100

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

	Equity Share Application A/c	Dr.		3,00,000
	To Equity Share Capital A/c				1,50,000
	To Securities Premium				1,00,000
	To Equity Share Allotment A/c				50,000
	(Share application money of 50,000 shares transferred to share capital at Rs 3 each and to premium Rs 2 each and Rs 50,000 adjusted on allotment)

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

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

	Equity Share Capital A/c	Dr.		7,000
	To Share Forfeiture A/c				2,800
	To Equity Share Allotment A/c				2,100
	To Equity Share First and Final A/c				2,100
	(700 shares of Rs 10 each forfeited for the non-payment of amount due)

	Share Forfeiture A/c	Dr.		700
	To Equity Share Capital A/c				700
	(Loss on issue Re 1 on 700 shares charged from the Share Forfeiture Account)

	Share Forfeiture A/c	Dr.		2,100
	To Capital Reserve A/c				2,100
	(Balance in Share Forfeiture after re-issue transferred to Capital Reserve)

Working Notes-

Mr. Sharma’s Share

Number of shares applied by Mr Sharma

Money received on Application 840 shares × Rs 5	=	4,200
Less: Money transferred to Share Capital 700 shares × Rs 3	=	2,100
Less: Securities Premium 700 shares × Rs 2	=	1,400
Excess money on Application		700

Allotment due 700 shares × Rs 4	=	2,800
Less: Excess money on Application		700
Calls-in Arrears on Allotment		2,100

Share Allotment

Share Allotment due 50,000 × Rs 4	=	2,00,0000
Less: Excess money on Application	=	50,000
Less: Calls-in-Arrears	=	2,100
Money received on Application		1,47,900

Share First and Final Call

Share First and Final Call due 50,000 Shares × Rs 3	=	1,50,000
Less: Calls in Arrears on 700 shares × Rs 3	=	2,100
Money received on First and Final Call		1,47,900

Capital Reserve

Money received on Application from Mr Sharma		=	Rs 4,200
Less: Securities Premium 700 × Rs 2		=	Rs 1,400
Share Forfeiture	Cr.		2,800
Share Forfeiture 700 × Re 1	Dr.		700
Capital Reserve			2,100

Answer:

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

Applied shares 3,000

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 3	(2 + 1)
2,400	2,000	Allotment	Rs 4	(3 + 1)
600	NIL	First Call	Rs 3
		Final Call	Rs 2
3,000	2,000		Rs 12	(10 + 2) per share

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

	Bank A/c	Dr.		9,000
	To Share Application A/c				9,000
	(Share application money received for 3,000 shares at Rs 3 per share including Re 1 premium)

	Share Application A/c	Dr.		9,000
	To Share Capital A/c				4,000
	To Securities Premium A/c				2,000
	To Share Allotment A/c				1,200
	To Bank A/c				1,800
	(Share application money of 2,000 shares transferred to Share Capital and securities premium at Rs 2, and Re 1 each respectively, Rs 1,800 adjusted on allotment and remaining Rs 1,200 refunded)

	Share Allotment A/c	Dr.		8,000
	To Share Capital A/c				6,000
	To Securities Premium A/c				2,000
	(Allotment due on 2,000 shares at Rs 4 per share including Re 1 premium)

	Bank A/c	Dr.		6,664
	To Share Allotment A/c				6,664
	(Allotment received for 1960 shares after adjustment of excess application money)

	Share First Call A/c	Dr.		6,000
	To Share Capital A/c				6,000
	(First call due on 2,000 shares of at Rs 3 per share)

	Bank A/c	Dr.		5,700
	To Share First Call A/c				5,700
	(Share First Call received for 1,900 shares)

	Share Capital A/c	Dr.		320
	Securities Premium A/c	Dr.		40
	To Share Forfeiture A/c (144 – 40)				104
	To Share Allotment A/c				136
	To Share First Call A/c				120
	(40 shares of Rs 10 each, Rs 8 called-up for non-payment of money due on allotment and first including Re 1 premium)

	Share Final Call A/c	Dr.		3,920
	To Share Capital A/c				3,920
	(Final call due on 1,960 shares at Rs 2 each)

	Bank A/c	Dr.		3,800
	To Share Final Call A/c				3,800
	(Final call received for 1,900 shares)

	Share Capital A/c	Dr.		600
	To Share Forfeiture A/c				300
	To Share First Call A/c				180
	To Share Final Call A/c				120
	(60 shares forfeited for the non-payment of first call and final call money)

	Bank A/c	Dr.		720
	Share Forfeiture A/c	Dr.		80
	To Share Capital A/c				800
	(80 shares of Rs 10 each re-issued at Rs 9 per share fully paid-up)

	Share Forfeiture A/c	Dr.		224
	To Capital Reserve A/c				224
	(Balance in Share Forfeiture Account of 80 re-issued shares transferred to Capital Reserve)

Working Notes-

Ramesh’s Shares

Number of shares allotted

Money received on Application (48 shares × Rs 3)	=	Rs	144
Less: Application money adjusted to Share Capital (40 shares × Rs 2)	=	Rs	80
Less: Securities Premium (40 shares × Re 1)	=	Rs	40
Excess money Application	=	Rs	24

Allotment due (40 shares × Rs 4)	=	Rs	160
Less: Excess money on Application	=	Rs	24
Calls-in-Arrears		Rs	136

Rajesh’s Shares

Number of shares allotted =

Share Allotment

Money due on Allotment (2,000 shares × Rs 4)	8,000
Less: Excess application money adjusted	1,200
Less: Calls-in-Arrears	136
Money received on Allotment	6,664

Share First Call

Money due on First Call (2,000 shares × Rs 3)	6,000
Less: Calls-in-Arrears on Ramesh (40 shares × 3)	120
Less: Calls-in-Arrears on Rajesh (60 shares × 3)	180
Money received on First Call	5,700

Share Final Call

Money due on Final Call (1,960 shares × Rs 2)	3920
Less: Calls in Arrest on Rajesh (60 shares × Rs 2)	120
Money received on Final Call	3,800

Capital Reserve

Ramesh

Money received from Ramesh		144
Less: Securities Premium (40 shares × Re 1)		40
Share Forfeiture	Cr.	104
Share forfeiture 40 × Rs 1	Dr.	40
Capital Reserve of Ramesh		64

Rajesh

Share Forfeiture	Cr.	Rs	5 per share
Share Forfeiture	Dr.	Rs	1 per share
Share Forfeiture after re-issue		Rs	4 per share

Capital Reserve on Rajesh’s shares = Share Forfeiture after re-issue (per share) × No. of shares re-issued

= Rs 4 × 40

= Rs 160

Total Capital Reserve = Capital Reserve of 40 shares of Ramesh + Capital Reserve of 40

shares of Rajesh

= 64 + 160

= Rs 224

Question 108:

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

Applied shares 3,000

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 3	(2 + 1)
2,400	2,000	Allotment	Rs 4	(3 + 1)
600	NIL	First Call	Rs 3
		Final Call	Rs 2
3,000	2,000		Rs 12	(10 + 2) per share

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

	Bank A/c	Dr.		9,000
	To Share Application A/c				9,000
	(Share application money received for 3,000 shares at Rs 3 per share including Re 1 premium)

	Share Application A/c	Dr.		9,000
	To Share Capital A/c				4,000
	To Securities Premium A/c				2,000
	To Share Allotment A/c				1,200
	To Bank A/c				1,800
	(Share application money of 2,000 shares transferred to Share Capital and securities premium at Rs 2, and Re 1 each respectively, Rs 1,800 adjusted on allotment and remaining Rs 1,200 refunded)

	Share Allotment A/c	Dr.		8,000
	To Share Capital A/c				6,000
	To Securities Premium A/c				2,000
	(Allotment due on 2,000 shares at Rs 4 per share including Re 1 premium)

	Bank A/c	Dr.		6,664
	To Share Allotment A/c				6,664
	(Allotment received for 1960 shares after adjustment of excess application money)

	Share First Call A/c	Dr.		6,000
	To Share Capital A/c				6,000
	(First call due on 2,000 shares of at Rs 3 per share)

	Bank A/c	Dr.		5,700
	To Share First Call A/c				5,700
	(Share First Call received for 1,900 shares)

	Share Capital A/c	Dr.		320
	Securities Premium A/c	Dr.		40
	To Share Forfeiture A/c (144 – 40)				104
	To Share Allotment A/c				136
	To Share First Call A/c				120
	(40 shares of Rs 10 each, Rs 8 called-up for non-payment of money due on allotment and first including Re 1 premium)

	Share Final Call A/c	Dr.		3,920
	To Share Capital A/c				3,920
	(Final call due on 1,960 shares at Rs 2 each)

	Bank A/c	Dr.		3,800
	To Share Final Call A/c				3,800
	(Final call received for 1,900 shares)

	Share Capital A/c	Dr.		600
	To Share Forfeiture A/c				300
	To Share First Call A/c				180
	To Share Final Call A/c				120
	(60 shares forfeited for the non-payment of first call and final call money)

	Bank A/c	Dr.		720
	Share Forfeiture A/c	Dr.		80
	To Share Capital A/c				800
	(80 shares of Rs 10 each re-issued at Rs 9 per share fully paid-up)

	Share Forfeiture A/c	Dr.		224
	To Capital Reserve A/c				224
	(Balance in Share Forfeiture Account of 80 re-issued shares transferred to Capital Reserve)

Working Notes-

Ramesh’s Shares

Number of shares allotted

Money received on Application (48 shares × Rs 3)	=	Rs	144
Less: Application money adjusted to Share Capital (40 shares × Rs 2)	=	Rs	80
Less: Securities Premium (40 shares × Re 1)	=	Rs	40
Excess money Application	=	Rs	24

Allotment due (40 shares × Rs 4)	=	Rs	160
Less: Excess money on Application	=	Rs	24
Calls-in-Arrears		Rs	136

Rajesh’s Shares

Number of shares allotted =

Share Allotment

Money due on Allotment (2,000 shares × Rs 4)	8,000
Less: Excess application money adjusted	1,200
Less: Calls-in-Arrears	136
Money received on Allotment	6,664

Share First Call

Money due on First Call (2,000 shares × Rs 3)	6,000
Less: Calls-in-Arrears on Ramesh (40 shares × 3)	120
Less: Calls-in-Arrears on Rajesh (60 shares × 3)	180
Money received on First Call	5,700

Share Final Call

Money due on Final Call (1,960 shares × Rs 2)	3920
Less: Calls in Arrest on Rajesh (60 shares × Rs 2)	120
Money received on Final Call	3,800

Capital Reserve

Ramesh

Money received from Ramesh		144
Less: Securities Premium (40 shares × Re 1)		40
Share Forfeiture	Cr.	104
Share forfeiture 40 × Rs 1	Dr.	40
Capital Reserve of Ramesh		64

Rajesh

Share Forfeiture	Cr.	Rs	5 per share
Share Forfeiture	Dr.	Rs	1 per share
Share Forfeiture after re-issue		Rs	4 per share

Capital Reserve on Rajesh’s shares = Share Forfeiture after re-issue (per share) × No. of shares re-issued

= Rs 4 × 40

= Rs 160

Total Capital Reserve = Capital Reserve of 40 shares of Ramesh + Capital Reserve of 40

shares of Rajesh

= 64 + 160

= Rs 224

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 109:

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:

Issued capital 2,00,000 shares of Rs 10 each.

Applied shares 3,00,000

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 3
2,00,000	1,50,000	Allotment	Rs 5
1,00,000	50,000	First and Final Call	Rs 2
3,00,000	2,00,000		Rs 10	per share

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

	Bank A/c	Dr.		9,00,000
	To Equity Share Application A/c				9,00,000
	(Application money received for 3,00,000 shares at Rs 3 each)

	Equity Share Application A/c	Dr.		9,00,000
	To Equity Share Capital A/c				6,00,000
	To Equity Share Allotment A/c				3,00,000
	(Application money of 2,00,000 shares at Rs 3 each transferred to Shares Capital and excess money Rs 3,00,000 adjusted on allotment)

	Equity Share Allotment A/c	Dr.		10,00,000
	To Equity Share Capital A/c				10,00,000
	(Allotment due on 2,00,000 shares at Rs 5 each)

	Bank A/c	Dr.		6,88,000
	To Equity Share Allotment A/c				6,88,000
	(Allotment received on 1,97,000 shares)

	Equity Share Capital A/c	Dr.		24,000
	To Share Forfeiture A/c				12,000
	To Share Allotment A/c				12,000
	(300 shares forfeited for the non-payment of money due on allotment)

	Equity Share First and Final Call A/c	Dr.		3,94,000
	To Equity Share Capital A/c				3,94,000
	(First and Final call due on 1,97,000 shares at Rs 2 per share)

	Bank A/c			3,92,000
	To Equity Share First and Final Call A/c				3,92,000
	(Share First and Final Call received on 1,97,000 shares)

	Equity Share Capital A/c	Dr.		10,000
	To Share Forfeiture A/c				8,000
	To Equity Share First and Final Call A/c				2,000
	(1,000 shares forfeited for the non-payment of first and final call)

	Bank A/c	Dr.		28,000
	Share Forfeiture A/c	Dr.		7,000
	To Equity Share Capital A/c				35,000
	(3,500 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		9,000
	To Capital Reserve A/c				9,000
	(Balance in Share Forfeiture of 3,500 re-issued shares transferred to Capital Reserve)

Working Note:

Bajaj’s Share

Number of shares applied

Money received on Application (4,000 shares × Rs 3)	=	12,000
Less: Money transferred to Shares capital (3000 shares × Rs 3)	=	9,000
Excess money on Application		3,000

Allotment due (3,000 shares × Rs 5)	=	15,000
Less: Excess money on application	=	3,000
Calls-in-Arrears on Allotment		12,000

Share Allotment

Money due an allotment (2,00,000 shares × Rs 5)	=	10,00,000
Less: Excess money on Application	=	3,00,000
Less: Calls-in-Arrears on Bajaj’s shares	=	12,000
Money received on Allotment	=	Rs 6,88,000

Sharma’s shares

Number of shares allotted

Capital Reserve

Forfeiture of shares held by Bajaj

Share Forfeiture Credit	=	Rs 4 per shares
Share Forfeiture Debit on re-issue	=	Rs 2	per share
Share Forfeiture after re-issue		Rs 2	per share

Capital Reserve on re-issue of Bajaj’s shares	=	Rs 2 × 3,000 (no. of shares re-issued)
	=	Rs 6,000

Forfeiture of shares held by Sharma

Share Forfeiture Credit	Rs 8	per share
Share Forfeiture Debit on re-issue	Rs 2	per share
	Rs 6	per share

Capital Reserve on re-issue of 500 Shares of Sharma = Rs 6 × 500 (no. of shares re-issued) = Rs 3,000

Total Capital Reserve on 3,500 shares = 6,000 (re-issue of Bajaj’s) + 3,000 (re-issue of Sharma’s) = Rs 9,000

Question 110:

Issued capital 2,00,000 shares of Rs 10 each.

Applied shares 3,00,000

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 3
2,00,000	1,50,000	Allotment	Rs 5
1,00,000	50,000	First and Final Call	Rs 2
3,00,000	2,00,000		Rs 10	per share

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

	Bank A/c	Dr.		9,00,000
	To Equity Share Application A/c				9,00,000
	(Application money received for 3,00,000 shares at Rs 3 each)

	Equity Share Application A/c	Dr.		9,00,000
	To Equity Share Capital A/c				6,00,000
	To Equity Share Allotment A/c				3,00,000
	(Application money of 2,00,000 shares at Rs 3 each transferred to Shares Capital and excess money Rs 3,00,000 adjusted on allotment)

	Equity Share Allotment A/c	Dr.		10,00,000
	To Equity Share Capital A/c				10,00,000
	(Allotment due on 2,00,000 shares at Rs 5 each)

	Bank A/c	Dr.		6,88,000
	To Equity Share Allotment A/c				6,88,000
	(Allotment received on 1,97,000 shares)

	Equity Share Capital A/c	Dr.		24,000
	To Share Forfeiture A/c				12,000
	To Share Allotment A/c				12,000
	(300 shares forfeited for the non-payment of money due on allotment)

	Equity Share First and Final Call A/c	Dr.		3,94,000
	To Equity Share Capital A/c				3,94,000
	(First and Final call due on 1,97,000 shares at Rs 2 per share)

	Bank A/c			3,92,000
	To Equity Share First and Final Call A/c				3,92,000
	(Share First and Final Call received on 1,97,000 shares)

	Equity Share Capital A/c	Dr.		10,000
	To Share Forfeiture A/c				8,000
	To Equity Share First and Final Call A/c				2,000
	(1,000 shares forfeited for the non-payment of first and final call)

	Bank A/c	Dr.		28,000
	Share Forfeiture A/c	Dr.		7,000
	To Equity Share Capital A/c				35,000
	(3,500 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		9,000
	To Capital Reserve A/c				9,000
	(Balance in Share Forfeiture of 3,500 re-issued shares transferred to Capital Reserve)

Working Note:

Bajaj’s Share

Number of shares applied

Money received on Application (4,000 shares × Rs 3)	=	12,000
Less: Money transferred to Shares capital (3000 shares × Rs 3)	=	9,000
Excess money on Application		3,000

Allotment due (3,000 shares × Rs 5)	=	15,000
Less: Excess money on application	=	3,000
Calls-in-Arrears on Allotment		12,000

Share Allotment

Money due an allotment (2,00,000 shares × Rs 5)	=	10,00,000
Less: Excess money on Application	=	3,00,000
Less: Calls-in-Arrears on Bajaj’s shares	=	12,000
Money received on Allotment	=	Rs 6,88,000

Sharma’s shares

Number of shares allotted

Capital Reserve

Forfeiture of shares held by Bajaj

Share Forfeiture Credit	=	Rs 4 per shares
Share Forfeiture Debit on re-issue	=	Rs 2	per share
Share Forfeiture after re-issue		Rs 2	per share

Capital Reserve on re-issue of Bajaj’s shares	=	Rs 2 × 3,000 (no. of shares re-issued)
	=	Rs 6,000

Forfeiture of shares held by Sharma

Share Forfeiture Credit	Rs 8	per share
Share Forfeiture Debit on re-issue	Rs 2	per share
	Rs 6	per share

Capital Reserve on re-issue of 500 Shares of Sharma = Rs 6 × 500 (no. of shares re-issued) = Rs 3,000

Total Capital Reserve on 3,500 shares = 6,000 (re-issue of Bajaj’s) + 3,000 (re-issue of Sharma’s) = Rs 9,000

Answer:

Issued capital 1,00,000 shares of Rs 10 each at premium of Rs 4

Applied shares 1,50,000

Payable as:
Application	Rs 6	(4 + 2)
Allotment	Rs 6	(4 + 2)
First and Final Call	Rs 2
	Rs 14	(10 + 4) per share

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

	Bank A/c	Dr.		9,00,000
	To Equity Share Application A/c				9,00,000
	(Application money received for 1,50,000 shares at Rs 6 per share)

	Equity Share Application A/c	Dr.		9,00,000
	To Equity Share Capital A/c				4,00,000
	To Securities Premium A/c				2,00,000
	To Equity Share Allotment A/c				3,00,000
	(Application money of 1,00,000 share transferred to Share Capital and Securities Premium at Rs 4 and Rs 2 each respectively and remaining Rs 3,00,000 adjusted on allotment)

	Equity Share Allotment A/c	Dr.		6,00,000
	To Equity Share Capital A/c				4,00,000
	To Securities Premium A/c				2,00,000
	(Allotment due for 1,00,000 shares at Rs 6 per share including Rs 2 premium)

	Bank A/c	Dr.		2,99,400
	To Equity Share Allotment A/c				2,99,400
	(Allotment money received except 200 shares)

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

	Bank A/c	Dr.		1,99,400
	To Equity Shares First and Final Call A/c				1,99,400
	(First and final call received shares except 300 shares)

	Equity Share Capital A/c	Dr.		2,000
	Securities Premium A/c (200 × 2)	Dr.		400
	To Share Forfeiture A/c				1,400
	To Equity Share Allotment A/c				600
	To Equity Share First and Final Call A/c				400
	(200 shares forfeited for the non-payment due amount)

	Equity Share Capital A/c	Dr.		1,000
	To Share Forfeiture A/c				800
	To Equity Share First and Final Call A/c				200
	(100 shares forfeited for the non-payment of first and final call)

	Bank A/c	Dr.		2,400
	Share Forfeiture A/c	Dr.		600
	To Equity Share Capital A/c				3,000
	(300 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		1,600
	To Capital Reserve A/c				1,600
	(Balance in Share Forfeiture Account after re-issue of shares, transferred to Capital Reserve)

Working Notes-

Subodh’s Shares

Number of share applied

Money received on Application (300 shares × Rs 6)	=	1,800
Less: Transferred to Shares Capital (200 shares × Rs 4)	=	800
Less: Securities Premium (200 shares × Rs 2)	=	400
Excess money on Application		600

Allotment due (200 shares × Rs 6)	=	1,200
Less: Excess money on Application	=	600
Calls-in-Arrears on Allotment		600

Share Allotment

Money due on Allotment (1,00,000 shares × Rs 6)	=	6,00,000
Less: Excess money on Application	=	3,00,000
Less: Calls-in-Arrears on Allotment		600
Money received on Allotment		2,99,400

Capital Reserve

Money received on Application from Subodh (300 shares× Rs 2)	1,800
Less: Securities Premium received (200 shares × Rs 2)	400
Share Forfeiture Credit on Subodh’s share	1,400
Share Forfeiture Credit on Vikram’s Shares (100 × Rs 8)	800
Total money credited to Share Forfeiture Account	2,200
Less: Share Forfeiture Account debit (300 × Rs 2)	600
Capital Reserve (balance in Share Forfeiture Account after re-issue)	1,600

Question 111:

Issued capital 1,00,000 shares of Rs 10 each at premium of Rs 4

Applied shares 1,50,000

Payable as:
Application	Rs 6	(4 + 2)
Allotment	Rs 6	(4 + 2)
First and Final Call	Rs 2
	Rs 14	(10 + 4) per share

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

	Bank A/c	Dr.		9,00,000
	To Equity Share Application A/c				9,00,000
	(Application money received for 1,50,000 shares at Rs 6 per share)

	Equity Share Application A/c	Dr.		9,00,000
	To Equity Share Capital A/c				4,00,000
	To Securities Premium A/c				2,00,000
	To Equity Share Allotment A/c				3,00,000
	(Application money of 1,00,000 share transferred to Share Capital and Securities Premium at Rs 4 and Rs 2 each respectively and remaining Rs 3,00,000 adjusted on allotment)

	Equity Share Allotment A/c	Dr.		6,00,000
	To Equity Share Capital A/c				4,00,000
	To Securities Premium A/c				2,00,000
	(Allotment due for 1,00,000 shares at Rs 6 per share including Rs 2 premium)

	Bank A/c	Dr.		2,99,400
	To Equity Share Allotment A/c				2,99,400
	(Allotment money received except 200 shares)

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

	Bank A/c	Dr.		1,99,400
	To Equity Shares First and Final Call A/c				1,99,400
	(First and final call received shares except 300 shares)

	Equity Share Capital A/c	Dr.		2,000
	Securities Premium A/c (200 × 2)	Dr.		400
	To Share Forfeiture A/c				1,400
	To Equity Share Allotment A/c				600
	To Equity Share First and Final Call A/c				400
	(200 shares forfeited for the non-payment due amount)

	Equity Share Capital A/c	Dr.		1,000
	To Share Forfeiture A/c				800
	To Equity Share First and Final Call A/c				200
	(100 shares forfeited for the non-payment of first and final call)

	Bank A/c	Dr.		2,400
	Share Forfeiture A/c	Dr.		600
	To Equity Share Capital A/c				3,000
	(300 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		1,600
	To Capital Reserve A/c				1,600
	(Balance in Share Forfeiture Account after re-issue of shares, transferred to Capital Reserve)

Working Notes-

Subodh’s Shares

Number of share applied

Money received on Application (300 shares × Rs 6)	=	1,800
Less: Transferred to Shares Capital (200 shares × Rs 4)	=	800
Less: Securities Premium (200 shares × Rs 2)	=	400
Excess money on Application		600

Allotment due (200 shares × Rs 6)	=	1,200
Less: Excess money on Application	=	600
Calls-in-Arrears on Allotment		600

Share Allotment

Money due on Allotment (1,00,000 shares × Rs 6)	=	6,00,000
Less: Excess money on Application	=	3,00,000
Less: Calls-in-Arrears on Allotment		600
Money received on Allotment		2,99,400

Capital Reserve

Money received on Application from Subodh (300 shares× Rs 2)	1,800
Less: Securities Premium received (200 shares × Rs 2)	400
Share Forfeiture Credit on Subodh’s share	1,400
Share Forfeiture Credit on Vikram’s Shares (100 × Rs 8)	800
Total money credited to Share Forfeiture Account	2,200
Less: Share Forfeiture Account debit (300 × Rs 2)	600
Capital Reserve (balance in Share Forfeiture Account after re-issue)	1,600

Answer:

Applied shares 2,40,000

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 5
1,00,000	1,00,000	Allotment	Rs 4	(2 + 2)
80,000	60,000	First Call	Rs 2
60,000	40,000	Final Call	Re 1
2,40,000	2,00,000		Rs 12	(10 + 2) per share

Cash Book
Dr.					Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs

	Equity Share Application (2,40,000 × Rs 5)	12,00,000		Balance c/d
	Equity Share Allotment (See note-2)	5,93,900
	Equity Share First Call (See note-3)	3,93,800
	Equity Share First Call	1,96,900
	(1,96,900 shares × Re 1)
	Equity Share Capital (1,000 shares of category i)	8,000
	Equity Share Capital (300 shares of category ii)	2,400			23,95,000
		23,95,000			23,95,000

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

	Equity Share Application A/c	Dr.		12,00,000
	To Equity Share Capital A/c				10,00,000
	To Equity Share allotment A/c				2,00,000
	(Equity Share application money of 2,00,000 shares at Rs 5 each transferred to Share Capital and Rs 2,00,000 adjusted on allotment)

	Equity Share Allotment A/c	Dr.		8,00,000
	To Equity Share Capital A/c				4,00,000
	To Securities Premium A/c				4,00,000
	(Share allotment due on 2,00,000 shares at Rs 4 each including Rs 2 premium)

	Equity Share First Call A/c	Dr.		4,00,000
	To Equity Share Capital A/c				4,00,000
	(First call due on 2,00,000 shares at Rs 2 each)

	Equity Share Capital A/c	Dr.		9,000
	Securities Premium A/c	Dr.		2,000
	To Share Forfeiture A/c (900 shares × Rs 5)				5,000
	To Equity Share Allotment A/c (900 shares × Rs 4)				4,000
	To Equity Share First Call A/c (900 shares × Rs 2)				2,000
	(1,000 shares of category (i) Rs 10 each, on which Rs 8 had called-up, forfeited for the non-payment of amount due)

	Equity Share Capital A/c	Dr.		8,100
	Securities Premium A/c	Dr.		1,800
	To Share Forfeiture A/c				6,000
	To Equity Shares Allotment A/c				2,100
	To Equity Shares First-Call A/c				1,800
	(900 shares of category (ii) forfeited for the non-payment of amount due)

	Equity Share Final Call A/c	Dr.		1,98,100
	To Equity Shared Capital A/c				1,98,100
	(Final call due on 1,98,100 shares at Re 1 each)

	Equity Share Capital A/c	Dr.		12,000
	To Share Forfeiture A/c				8,400
	To Share First Call A/c				2,400
	To Share Final Call A/c				1,200
	(1,200 shares of category (iii) forfeited for the non-payment amount due)

	Share Forfeiture A/c	Dr.		2,000
	To Equity Share Capital A/c				2,000
	(Loss on re-issue of 1,000 shares of category (i) charged from Share Forfeiture Account)

	Share Forfeiture A/c	Dr.		600
	To Equity Share Capital A/c				600
	(Loss on re-issue of 300 of category (ii) charged from Share Forfeiture Account)

	Share Forfeiture A/c	Dr.		4,400
	To Capital Reserve A/c				4,400
	(Balance in Share Forfeiture Account of 1,300 re-issued shares transferred to Capital Reserve)

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

Super Star Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	19,94,400
b. Reserves and Surplus	2	4,00,600
2. Non-Current Liabilities
3. Current Liabilities
Total		23,95,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	23,95,000
Total		23,95,000

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	……. Equity Shares of Rs 10 each		-
	Issued Share Capital
	2,00,000 Equity Shares of Rs 10 each		20,00,000
	Subscribed, Called-up and Paid-up Share Capital
	1,98,200 Equity Shares of Rs 10 each	19,82,000
	Add: Shares Forfeited (600 shares × Rs 6.66)	4,000
	Add: Shares Forfeited (1,200 shares × Rs 7)	8,400	19,94,400

2	Reserves and Surplus
	Securities Premium	3,96,200
	Capital Reserve	4,400	4,00,600

3	Cash and Cash Equivalents
	Cash at Bank		23,95,000

Working Notes:

1. 1,200 shares of Category (ii)

Number of share allotted

Money received on application (1,200 shares × Rs 5)	=	6,000
Less: Application money transferred to Share Capital (900 shares × Rs 5)	=	4,500
Excess money received from 1,200 shares on Application	=	1,500

Money due on Allotment (900 shares × Rs 4)	=	3,600
Less: Excess money on Application	=	1,500
Calls-in-Arrears on Allotment of category (ii)		2,100

2. Share Allotment

Money due on Allotment (2,00,000 shares × Rs 4)	=	8,00,000
Less: Excess money on Application	=	2,00,000
Less: Calls-in-Arrears 1,000 shares of category (i) (1,000 shares × Rs 4)	=	4,000
Less: Calls-in-Arrears 1,200 shares of category (ii)	=	2,100
Money received on Allotment	=	5,93,900

3. Share First Call

First Call due on 2,00,000 shares × Rs 2	=	4,00,000
Less: Calls-in-Arrears on 3,100 shares × Rs 2 (1,000 + 900 + 1,200 shares of category (i), (ii) and (iii) respectively)		(6,200)
Money received on First Call		3,93,800

4. Share Final Call

Money due on Share Final Call (2,00,000 – 1900) × Rs 1	=	1,98,100
Less: Calls-in-Arrears of 1,200 shares of Category (iii)		1,200
Money received on Final Call		1,96,900

Capital Reserve

Calculation of Share Forfeiture of 1,000 shares of category (i)

Share Forfeiture	Rs 5,000	Cr.
Less: Share Forfeiture	Rs 2,000	Dr.
Capital Reserve of 1,000 shares (balance after re-issue)	Rs 3,000	Cr.

Calculation of Share Forfeiture of 300 shares of category (ii)

Share Forfeiture = Credit	=	Rs	6.67	per share
Less: Share Forfeiture Debit	=	Rs	2	per share
Capital Reserve (balance after re-issue)	=	Rs	4.67	per share

Capital Reserve of 300 shares = Capital Reserve (per share) × No. of shares re-issued = Rs 4.67 × 300 shares = Rs 1,400

Total Capital Reserve of 1,300 shares = Capital Reserve of 1,000 shares of category (i) + Capital Reserve of 300 shares of category (ii) = 3,000 + 1,400 = Rs 4,400

Question 112:

Applied shares 2,40,000

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 5
1,00,000	1,00,000	Allotment	Rs 4	(2 + 2)
80,000	60,000	First Call	Rs 2
60,000	40,000	Final Call	Re 1
2,40,000	2,00,000		Rs 12	(10 + 2) per share

Cash Book
Dr.					Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs

	Equity Share Application (2,40,000 × Rs 5)	12,00,000		Balance c/d
	Equity Share Allotment (See note-2)	5,93,900
	Equity Share First Call (See note-3)	3,93,800
	Equity Share First Call	1,96,900
	(1,96,900 shares × Re 1)
	Equity Share Capital (1,000 shares of category i)	8,000
	Equity Share Capital (300 shares of category ii)	2,400			23,95,000
		23,95,000			23,95,000

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

	Equity Share Application A/c	Dr.		12,00,000
	To Equity Share Capital A/c				10,00,000
	To Equity Share allotment A/c				2,00,000
	(Equity Share application money of 2,00,000 shares at Rs 5 each transferred to Share Capital and Rs 2,00,000 adjusted on allotment)

	Equity Share Allotment A/c	Dr.		8,00,000
	To Equity Share Capital A/c				4,00,000
	To Securities Premium A/c				4,00,000
	(Share allotment due on 2,00,000 shares at Rs 4 each including Rs 2 premium)

	Equity Share First Call A/c	Dr.		4,00,000
	To Equity Share Capital A/c				4,00,000
	(First call due on 2,00,000 shares at Rs 2 each)

	Equity Share Capital A/c	Dr.		9,000
	Securities Premium A/c	Dr.		2,000
	To Share Forfeiture A/c (900 shares × Rs 5)				5,000
	To Equity Share Allotment A/c (900 shares × Rs 4)				4,000
	To Equity Share First Call A/c (900 shares × Rs 2)				2,000
	(1,000 shares of category (i) Rs 10 each, on which Rs 8 had called-up, forfeited for the non-payment of amount due)

	Equity Share Capital A/c	Dr.		8,100
	Securities Premium A/c	Dr.		1,800
	To Share Forfeiture A/c				6,000
	To Equity Shares Allotment A/c				2,100
	To Equity Shares First-Call A/c				1,800
	(900 shares of category (ii) forfeited for the non-payment of amount due)

	Equity Share Final Call A/c	Dr.		1,98,100
	To Equity Shared Capital A/c				1,98,100
	(Final call due on 1,98,100 shares at Re 1 each)

	Equity Share Capital A/c	Dr.		12,000
	To Share Forfeiture A/c				8,400
	To Share First Call A/c				2,400
	To Share Final Call A/c				1,200
	(1,200 shares of category (iii) forfeited for the non-payment amount due)

	Share Forfeiture A/c	Dr.		2,000
	To Equity Share Capital A/c				2,000
	(Loss on re-issue of 1,000 shares of category (i) charged from Share Forfeiture Account)

	Share Forfeiture A/c	Dr.		600
	To Equity Share Capital A/c				600
	(Loss on re-issue of 300 of category (ii) charged from Share Forfeiture Account)

	Share Forfeiture A/c	Dr.		4,400
	To Capital Reserve A/c				4,400
	(Balance in Share Forfeiture Account of 1,300 re-issued shares transferred to Capital Reserve)

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

Super Star Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	19,94,400
b. Reserves and Surplus	2	4,00,600
2. Non-Current Liabilities
3. Current Liabilities
Total		23,95,000

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	23,95,000
Total		23,95,000

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	……. Equity Shares of Rs 10 each		-
	Issued Share Capital
	2,00,000 Equity Shares of Rs 10 each		20,00,000
	Subscribed, Called-up and Paid-up Share Capital
	1,98,200 Equity Shares of Rs 10 each	19,82,000
	Add: Shares Forfeited (600 shares × Rs 6.66)	4,000
	Add: Shares Forfeited (1,200 shares × Rs 7)	8,400	19,94,400

2	Reserves and Surplus
	Securities Premium	3,96,200
	Capital Reserve	4,400	4,00,600

3	Cash and Cash Equivalents
	Cash at Bank		23,95,000

Working Notes:

1. 1,200 shares of Category (ii)

Number of share allotted

Money received on application (1,200 shares × Rs 5)	=	6,000
Less: Application money transferred to Share Capital (900 shares × Rs 5)	=	4,500
Excess money received from 1,200 shares on Application	=	1,500

Money due on Allotment (900 shares × Rs 4)	=	3,600
Less: Excess money on Application	=	1,500
Calls-in-Arrears on Allotment of category (ii)		2,100

2. Share Allotment

Money due on Allotment (2,00,000 shares × Rs 4)	=	8,00,000
Less: Excess money on Application	=	2,00,000
Less: Calls-in-Arrears 1,000 shares of category (i) (1,000 shares × Rs 4)	=	4,000
Less: Calls-in-Arrears 1,200 shares of category (ii)	=	2,100
Money received on Allotment	=	5,93,900

3. Share First Call

First Call due on 2,00,000 shares × Rs 2	=	4,00,000
Less: Calls-in-Arrears on 3,100 shares × Rs 2 (1,000 + 900 + 1,200 shares of category (i), (ii) and (iii) respectively)		(6,200)
Money received on First Call		3,93,800

4. Share Final Call

Money due on Share Final Call (2,00,000 – 1900) × Rs 1	=	1,98,100
Less: Calls-in-Arrears of 1,200 shares of Category (iii)		1,200
Money received on Final Call		1,96,900

Capital Reserve

Calculation of Share Forfeiture of 1,000 shares of category (i)

Share Forfeiture	Rs 5,000	Cr.
Less: Share Forfeiture	Rs 2,000	Dr.
Capital Reserve of 1,000 shares (balance after re-issue)	Rs 3,000	Cr.

Calculation of Share Forfeiture of 300 shares of category (ii)

Share Forfeiture = Credit	=	Rs	6.67	per share
Less: Share Forfeiture Debit	=	Rs	2	per share
Capital Reserve (balance after re-issue)	=	Rs	4.67	per share

Capital Reserve of 300 shares = Capital Reserve (per share) × No. of shares re-issued = Rs 4.67 × 300 shares = Rs 1,400

Total Capital Reserve of 1,300 shares = Capital Reserve of 1,000 shares of category (i) + Capital Reserve of 300 shares of category (ii) = 3,000 + 1,400 = Rs 4,400

Answer:

Applied shares 3,000

Allotment made as:		Payable as:
Applied	Allotted	Application	Rs 6	(5 + 1)
2,400	2,000	Allotment	Rs 2	(1 + 1)
600	NIL	First Call	Rs 3	(2 + 1)
		Final Call	Rs 3	(2 + 1)
3,000	2,000		Rs 14	(10 + 4) per share

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

	Share Application	18,000		Share Application	3,600
	(3,000 shares × Rs 6)			(600 shares × Rs 6)
	Share Allotment (see note-2)	1,568
	Share First Call (see note-4)	5,700
	Share Final Call (see note-5)	5,700
	Share Capital	720		Balance c/d	28,088
	(80 shares × Rs 9)
		31,688			31,688

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

	Share Application A/c	Dr.		14,400
	To Share Capital A/c				10,000
	To Securities Premium A/c				2,000
	To Share Allotment A/c				2,400
	(Share application money of 2,000 shares transferred to Share Capital and Securities Premium at Rs 5 and Re 1 each respectively and Rs 2,400 adjusted on allotment)

	Share Allotment A/c	Dr.		4,000
	To Share Capital A/c				2,000
	To Securities Premium A/c				2,000
	(Allotment due on 2,000 shares at Rs 2 each including Re 1 premium)

	Share First Call A/c	Dr.		6,000
	To Share Capital A/c				4,000
	To Securities Premium A/c				2,000
	(First call due on 2,000 shares at Rs 3 each including Re 1 premium)

	Share Capital A/c (40 shares × Rs 8)	Dr.		320
	Securities Premium A/c	Dr.		72
	To Share Forfeiture A/c				240
	To Share Allotment A/c				32
	To Share First Call A/c				120
	(40 shares of Rs 10 each Rs 8 called with premium forfeited for non-payment of amount due)

	Share Final Call A/c	Dr.		5,880
	To Share Capital A/c				3,920
	To Securities Premium A/c				1,960
	(Final call due on 1,960 shares at Rs 3 each including Re 1 premium)

	Share Capital A/c	Dr.		600
	Securities Premium A/c	Dr.		120
	To Share Forfeiture A/c				360
	To Share First Call A/c				360
	(60 shares forfeited for non-payment of amount due)

	Bank A/c	Dr.		720
	Share Forfeiture A/c	Dr.		80
	To Shares Capital A/c				800
	(80 shares of Rs 10 each re-issued at Rs 9 per share fully paid-up)

	Share Forfeiture A/c	Dr.		400
	To Capital Reserve				400
	(Balance of 80 reissued shares in Share Forfeiture Account transferred to Capital Reserve)

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

XYZ Ltd.
Balance Sheet
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	19,920
b. Reserves and Surplus	2	8,168
2. Non-Current Liabilities
3. Current Liabilities
Total		28,088

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	28,088
Total		28,088

NOTES TO ACCOUNTS


Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	……. shares of Rs 10 each		-
	Issued Share Capital
	2,000 shares of Rs 10 each		20,000
	Subscribed, Called-up and Paid-up Share Capital
	1,980 shares of Rs 10 each	19,800
	Add: Shares Forfeited (20 shares × Rs 6)	120	19,920

2	Reserves and Surplus
	Securities Premium	7,768
	Capital Reserve	400	8,168

3	Cash and Cash Equivalents
	Cash at Bank		28,088

Working Notes:

1. X’s Shares

Number of share applied by X

Money received on application (48 shares × Rs 6)	=	288
Less: Money transferred to Shares Capital (40 shares × Rs 5)	=	200
Less: Securities Premium (40 shares × Re 1)	=	40
Excess money on application from X	=	48
Utilisation of excess application money received from X
Share Capital due on Allotment (40 shares × Re 1)	=	40
Less: Excess money on Application from X	=	48
Excess money after adjustment of Share Capital on Allotment	=	8

Securities Premium due on Allotment (40 shares × Re 1)	=	40
Less: Excess money after adjustment of Share Capital on Allotment	=	8
Calls-in-Arrears of Securities Premium on Allotment	=	32

2. Share Allotment

Money due on allotment (2,000 shares × Rs 2)	=	4,000
Less: Excess money on Application	=	2,400
	=	1,600
Less: Calls-in-Arrears on X‘s shares (securities premium)	=	32
Money received on allotment	=	Rs 1,568

3. Y’s Shares

Number of shares allotted

4. Share First Call

Money due on Share First Call (2,000 shares × Rs 3)	=	6,000
Less: Calls-in-Arrears on X‘s shares (40 shares × Rs 3)	=	120
Less: Calls-in-Arrears on Y’s shares (60 shares × Rs 3)	=	180
Money received on Share First Call	=	5,700

5. Share Final Call

Money due on share Final Call (1,960 shares × Rs 3)	=	5,880
Less: Calls-in-Arrears on Y’s shares (60 shares × Rs 3)	=	180
Money received on Share Final Call	=	5,700

Capital Reserve

X’s shares

Money received from X for 40 shares	=	288
Less: Securities Premium adjusted on Application	=	40
Less: Securities Premium adjusted on Allotment	=	8
Balance in the Share Forfeiture before re-issue of shares Cr.		240

Share Forfeiture Credit	=	Rs	6	per share
Share forfeiture Debit	=	Rs	1	per share
		Rs	5	per share

Capital Reserve on re-issue of 20 shares = Rs 5 × 20 shares = Rs 100

Y’s Shares

Share Forfeiture on 60 Shares of Y

Share Forfeiture Credit	Rs 6	per share
Less: Share Forfeiture Debit	Rs 1	per share
	Rs 5	per share

Capital Reserve on re-issue of 60 shares of Y = Rs 5 × 60 shares = Rs 300

Total Capital Reserve on 80 shares = Capital Reserve on re-issue of 20 shares of X + Capital Reserve on re-issue of 60 shares of Y = 100 + 300 = Rs 400

TS Grewal i (2014) Solutions for Class 12 Commerce Accountancy Chapter 7 - Company Accounts Accounting For Share Capital

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