Page No 9.112:
Question 6:
The authorised capital of ` 16,00,000 of Bharat Ltd. is
divide into 1,60,000 Equity Shares of ` 10 each.
Out of these shares, 80,000 Equity Shares were issued at par to public for
subscription. The full nominal value is payable on application. All the shares
were subscribed by the public and total amount was paid for. Pass necessary
journal entries in the books of the company.
Answer:
Authorised Capital 1,60,000 equity
shares of ` 10 each
Issued and
Subscribed Capital 80,000 equity shares
Books of Bharat Limited Journal |
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Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
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Bank A/c |
Dr. |
|
8,00,000 |
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To Equity Share Application A/c |
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8,00,000 |
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|
(Share
application money received for 80,000 Equity Shares of ` 10 each) |
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Equity
Share Application A/c |
Dr. |
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8,00,000 |
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To Equity Share Capital A/c |
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8,00,000 |
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(Share
application of 80,000 shares of ` 10 each transferred to Equity Share Capital
Accounts) |
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Page No 9.112:
Question 7:
Ashish Ltd. invited
applications for 10,000 shares of ` 100 each payable as
follows:
` 20
on application, ` 30 on
allotment, ` 20 on first call and the balance on
final call.
All the shares were applied and allotted. All the money was duly received.
You are required to Journalise
these transactions.
Answer:
Issued and
Subscribed Capital 10,000 shares of ` 100 each
Payable as:
` |
20 |
on application |
` |
30 |
on allotment |
` |
20 |
on first call |
` |
30 |
on final call |
|
100 |
|
Books of Ashish Limited Journal |
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Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
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Bank A/c |
Dr. |
|
2,00,000 |
|
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To Share Application A/c |
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|
2,00,000 |
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(Share
application money received for 10,000 shares at ` 20 per share) |
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Share
Application A/c |
Dr. |
|
2,00,000 |
|
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To Share Capital A/c |
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2,00,000 |
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(Share
application of 10,000 shares of ` 20 each transferred to Share Capital) |
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Share
Allotment A/c |
Dr. |
|
3,00,000 |
|
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To Share Capital A/c |
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3,00,000 |
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(Share
allotment due on 10,000 shares at ` 30 per share) |
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Bank A/c |
Dr. |
|
3,00,000 |
|
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To Share Allotment A/c |
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|
3,00000 |
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(Share
allotment money received for 10,000 Shares at ` 30 per share) |
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Share
First Call A/c |
Dr. |
|
2,00,000 |
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To Share Capital A/c |
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2,00,000 |
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(Share
first call due on 10,000 shares at ` 20 per share) |
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Bank A/c |
Dr. |
|
2,00,000 |
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To Share First call A/c |
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2,00,000 |
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(Share
first call received on 10,000 shares at ` 20 per share) |
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Share
Final Call A/c |
Dr. |
|
3,00,000 |
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To Share Capital A/c |
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|
3,00,000 |
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(Share
Final call due on 10,000 shares at `30 per shares) |
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Bank A/c |
Dr. |
|
3,00,000 |
|
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To Share Final Call A/c |
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|
3,00,000 |
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(Share
final call received on 10,000 shares at ` 30 per share) |
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Page No 9.112:
Question 8:
National Ltd . was registered with the
authorized capital of `3,00,000
divided into 3,000 shares of `100 each,
which were offered to the public . Amount payable as `30 per share on
application , `40 per share on allotment and `30 per share
on first and final call . These shares were fully subscribed and all money was dully received . Prepare journal and Cash Book.
Answer:
Journal |
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Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
Share
Application A/c |
Dr. |
|
90,000 |
|
|
To Share
Capital |
|
|
|
90,000 |
|
(Share
application money transferred) |
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Share
Allotment A/c |
Dr. |
|
1,20,000 |
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To Share
Capital A/c |
|
|
|
1,20,000 |
|
(Share
allotment money transferred) |
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Share
First and Final Call A/c |
Dr. |
|
90,000 |
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To Share
Capital A/c |
|
|
|
90,000 |
|
(Share
first and final call money transferred) |
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Cash Book |
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Dr. |
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Cr. |
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Particulars |
Amount ( `) |
Particulars |
Amount ( `) |
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Share
Application A/c |
90,000 |
Balance
c/d |
3,00,000 |
||
Share
Allotment A/c |
1,20,000 |
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Share
First and Final Call A/c |
90,000 |
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3,00,000 |
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3,00,000 |
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Page No 9.112:
Question 9:
Modern
Marbles Ltd. was registered with an authorised
capital of `10,00,000
divided into 7,500 Equity Shares of ` 100
each and, 2,500 Preference Shares of `100 each.
1,000 Equity Shares and 500; 9% Preference Shares were offered to public on the
following terms – Equity Shares payable `10 on application, `40 on
allotment and the balance in two calls of ` 25
each. Preference Shares are payable ` 25 on
application, ` 25 on allotment and `50 on first
and final call. All the shares were applied for and allotted
. Amount due was duly received. Prepare Cash Book and pass necessary
Journal entries to record the above issue of shares and show how the Share
Capital will appear in the Balance Sheet.
Answer:
Authorised Capital:
Equity
Shares 7,500 of ` 100 each.
9%
Preference Shares 2,500 of ` 100 each.
Issued
Capital:
Equity
Shares 1,000 of ` 100 each.
Payable as
` 10 on
Application
` 40 on
Allotment
` 25 on First
Call
` 25 on Final
Call
Preference
Shares 500 of ` 100 each.
Payable as
` 25 on
application
` 25 on
allotment
` 50 on first
and final call
Books of Modern Marbles Limited |
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Dr. |
|
Cr. |
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Date |
Particulars |
L.F. |
Bank ( `) |
Date |
Particulars |
L.F. |
Bank ( `) |
|
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Equity Share Application |
|
10,000 |
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Preference Share Application |
|
12,500 |
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Equity Share Allotment |
|
40,000 |
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Preference Share Allotment |
|
12,500 |
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Equity Share First Call |
|
25,000 |
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Preference Share First and Final Call |
|
25,000 |
|
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Equity Share Final Call |
|
25,000 |
|
Balance c/d |
|
1,50,000 |
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1,50,000 |
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1,50,000 |
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Journal |
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Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
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Equity
Share Application A/c |
Dr. |
|
10,000 |
|
|
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To Equity Share Capital A/c |
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|
10,000 |
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(Equity
share application of 1,000 shares of ` 10 each transferred to Equity
Share Capital Account) |
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Preference
Share Application A/c |
Dr. |
|
12,500 |
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|
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To 9% Preference Share Capital A/c |
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|
12,500 |
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(Preference
share applications of 500 shares ` 25 each transferred to 9% Preference Share Capital
Account) |
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Equity
Share Allotment A/c |
Dr. |
|
40,000 |
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To Equity Share Capital A/c |
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|
40,000 |
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(Equity
share allotment due on 1,000 shares at ` 40 each) |
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Preference
Share Allotment A/c |
Dr. |
|
12,500 |
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To 9% Preference Share Capital A/c |
|
|
12,500 |
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(Preference
share allotment due on 500 shares at ` 25 each) |
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Equity
Share First Call A/c |
Dr. |
|
25,000 |
|
|
|
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To Equity Share Capital A/c |
|
|
25,000 |
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|
(Equity
share first call due on 1,000 shares at ` 25 each) |
|
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Preference
Share First and Final Call A/c |
Dr. |
|
25,000 |
|
|
|
|
To 9% Preference Share Capital A/c |
|
|
25,000 |
|
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|
(Preference
share first and final call due on 500 shares at ` 50 each) |
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Equity
Share Final Call A/c |
Dr. |
|
25,000 |
|
|
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To Equity Share Capital A/c |
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|
25,000 |
|
||
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(Equity
share final call due on 1,000 shares at ` 25 each) |
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Particulars |
Note No. |
Amount ( `) |
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I. Equity
and Liabilities |
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1.
Shareholders’ Funds |
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a. Share
Capital |
1 |
1,50,000 |
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2.
Non-Current Liabilities |
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3. Current
Liabilities |
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Total |
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1,50,000 |
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II. Assets |
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1.
Non-Current Assets |
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2. Current
Assets |
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a. Cash
and Cash Equivalents |
2 |
1,50,000 |
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Total |
|
1,50,000 |
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NOTES TO ACCOUNTS
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Note No. |
Particulars |
Amount ( `) |
|
1 |
Share
Capital |
|
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|
Authorised Share
Capital |
|
|
|
75,000
Equity Shares of ` 100 each |
7,50,000 |
|
|
25,000 9%
Preference Shares of ` 100 each |
2,50,000 |
10,00,000 |
|
Issued
Share Capital |
|
|
|
1,000
Equity Shares of ` 100 each |
1,00,000 |
|
|
500
9% Preference Shares of ` 100 each |
50,000 |
1,50,000 |
|
Subscribed,
Called-up and Paid-up Share Capital |
|
|
|
1,000
Equity Shares of ` 100 each |
1,00,000 |
|
|
500
9% Preference Shares of ` 100 each |
50,000 |
1,50,000 |
|
|
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|
2 |
Cash and
Cash Equivalents |
|
|
|
Cash at
Bank |
1,50,000 |
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Page No 9.112:
Question
10:
Premio Ltd. issued 50,000 Equity Shares of `100 each at a
premium of `50 per share,
payable as follows:
`100 per share on
application; and
Balance on
Allotment.
The issue was subscribed and shares were issued to the applicants. Pass the
necessary Journal entries.
Answer:
Books of Premio Limited Journal |
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Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
50,00,000 |
|
|
To Share Application A/c |
|
|
50,00,000 |
|
|
(Application money received for
50,000 shares at ` 5 per shares) |
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
50,00,000 |
|
|
To Share Capital A/c |
|
|
50,00,000 |
|
|
(Application money of 50,000 share
transferred to Share Capital at ` 100 per share) |
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
25,00,000 |
|
|
To Securities Premium A/c |
|
|
25,00,000 |
|
|
(Share allotment due on 50,000
shares ` 50 securities premium) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
25,00,000 |
|
|
To Share Allotment A/c |
|
|
25,00,000 |
|
|
(Share Allotment money received) |
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