12th | Ts grewal 2021-2022 | Question 6 to 10 | Ch: 1 Company Account: Accounting for share capital

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

Date

Particulars

L.F.

Debit

Amount

( `)

Credit

Amount

 ( `)

 

 

 

 

 

 

Bank A/c

Dr.

 

8,00,000

 

 

To Equity Share Application A/c

 

 

8,00,000

 

(Share application money received for 80,000 Equity Shares of  ` 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  ` 10 each transferred to Equity Share Capital Accounts)

 

 

 

 

 

 

 

 

 


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

Date

Particulars

L.F.

Debit

Amount

( `)

Credit

Amount

( `)

 

 

 

 

 

 

Bank A/c

Dr.

 

2,00,000

 

 

To Share Application A/c

 

 

2,00,000

 

(Share application money received for 10,000 shares at  ` 20 per share)

 

 

 

 

 

 

 

 

 

Share Application A/c

Dr.

 

2,00,000

 

 

To Share Capital A/c

 

 

2,00,000

 

(Share application of 10,000 shares of  ` 20 each transferred to Share Capital)

 

 

 

 

 

 

 

 

 

Share Allotment A/c

Dr.

 

3,00,000

 

 

To Share Capital A/c

 

 

3,00,000

 

(Share allotment due on 10,000 shares at  ` 30 per share)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

3,00,000

 

 

To Share Allotment A/c

 

 

3,00000

 

(Share allotment money received for 10,000 Shares at  ` 30 per share)

 

 

 

 

 

 

 

 

 

Share First Call A/c

Dr.

 

2,00,000

 

 

To Share Capital A/c

 

 

2,00,000

 

(Share first call due on 10,000 shares at  ` 20 per share)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

2,00,000

 

 

To Share First call A/c

 

 

2,00,000

 

(Share first call received on 10,000 shares at  ` 20 per share)

 

 

 

 

 

 

 

 

 

Share Final Call A/c

Dr.

 

3,00,000

 

 

To Share Capital A/c

 

 

3,00,000

 

(Share Final call due on 10,000 shares at  `30 per shares)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

3,00,000

 

 

To Share Final Call A/c

 

 

3,00,000

 

(Share final call received on 10,000 shares at  ` 30 per share)

 

 

 

 

 

 

 

 

 

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

Date

Particulars

L.F.

Debit

Amount

( `)

Credit

Amount

( `)

 

Share Application A/c

Dr.

 

90,000

 

 

To Share Capital

 

 

 

90,000

 

(Share application money transferred)

 

 

 

 

 

 

 

 

 

 

 

Share Allotment A/c

Dr.

 

1,20,000

 

 

To Share Capital A/c

 

 

 

1,20,000

 

(Share allotment money transferred)

 

 

 

 

 

 

 

 

 

 

 

Share First and Final Call A/c

Dr.

 

90,000

 

 

To Share Capital A/c

 

 

 

90,000

 

(Share first and final call money transferred)

 

 

 

 

 

Cash Book

Dr.

 

Cr.

Particulars

Amount

( `)

Particulars

Amount

( `)

Share Application A/c

90,000

Balance c/d

3,00,000

Share Allotment A/c

1,20,000

 

 

Share First and Final Call A/c

90,000

 

 

 

3,00,000

 

3,00,000

 

 

 

 

 

Page No 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
Cash Book

Dr.

 

Cr.

Date

Particulars

L.F.

Bank

( `)

Date

Particulars

L.F.

Bank

( `)

 

 

 

 

 

 

 

 

 

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

( `)

Credit Amount

 ( `)

 

 

 

 

 

 

 

 

Equity Share Application A/c

Dr.

 

10,000

 

 

 

To Equity Share Capital A/c

 

 

10,000

 

 

(Equity share application of 1,000 shares of  ` 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  ` 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  ` 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  ` 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  ` 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  ` 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  ` 25 each)

 

 

 

 

 

 

 

 

 

 


Balance Sheet

Particulars

Note No.

Amount

( `)

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

( `)

1

Share Capital

 

 

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

 

 

 

2

Cash and Cash Equivalents

 

 

Cash at Bank

1,50,000

 

 

 

 


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 

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)