Page No 9.122:
Question 71:
Gaurav
applied for 5,000 shares of ` 10 each at a premium of 2.50 per share. But he
was allotted only 2,500 shares on pro rata basis .
After having paid
` 3 per share on application, he did not pay allotment money
of ` 4.50 per share (including premium) and on his
subsequent failure to pay the first call of ` 2 per
share, his shares were forfeited. These shares were reissued at the rate of ` 8
per share credited as fully paid .
Pass journal entries to record the forfeiture and reissue of shares.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
Equity Share Capital A/c (2,500×7) |
Dr. |
|
17,500 |
|
|
|
Security Premium Reserve A/c |
Dr. |
|
3,750 |
|
|
|
To Equity Share Allotment A/c |
|
|
|
3,750 |
|
|
To Equity Share First Call A/c (2,500×2) |
|
|
|
5,000 |
|
|
To Share Forfeited A/c |
|
|
|
12,500 |
|
|
( 2,500 shares forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (2,500×8) |
Dr. |
|
20,000 |
|
|
|
Share Forfeited A/c (2,500×2) |
Dr. |
|
5,000 |
|
|
|
To Equity Share Capital A/c (2,500×10) |
|
|
|
25,000 |
|
|
(Share reissued @ ` 8 per
share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeited A/c (12,500 – 5,000) |
Dr. |
|
7,500 |
|
|
|
To Capital Reserve A/c |
|
|
|
7,500 |
|
|
( Profit on reissue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1: Calculation
of Amount unpaid on Allotment
Amount received on application
(5,000×3) = 15,000
Less: Amount adjusted on application (2,500×3) = 7,500
Excess amount received on
application
= 7,500
Amount due on allotment (2,500×4.5) = 11,250
Amount unpaid on
allotment
= 3,750 (11,250 – 7,500)
Note:
` 7,500 received on application will
be transferred to allotment, but first of all we have to transfer such amount
to Capital A/c and rest would be transferred to Securities Premium A/c. Capital
on allotment is ` 5,000 (2,500×2) that is fully
received and balance amount of advance ` 2,500 will
be transferred to Securities Premium A/c. So, amount of premium unpaid is ` 3,750 (2,500×2.5 –2,500).
Page No 9.122:
Question 72:
'Telecom
Ltd.' issued 20,000 Equity Shares of ` 10 each at a premium
of ` 5 per share, payable as: ` 7 (including premium) on
application, ` 5 on allotment and the balance
after three months of allotment. A shareholder to whom 200 shares were allotted
failed to pay the allotment and call money and his shares were forfeited. 160
of the forfeited shares were reissued for ` 1,600.
Give necessary entries in company's Journal and the Balance Sheet.
Answer:
Issued and
Applied 20,000 equity shares of ` 10 each
at a premium of ` 5
|
Application |
` |
7 |
(2+5) |
|
Allotment |
` |
5 |
|
|
First and
Final Call |
` |
3 |
|
|
|
|
15 |
(10+5) per
share |
|
Books of Telecom Ltd. |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
140,000 |
|
|
|
To Equity Share Application A/c |
|
|
140,000 |
|
|
|
(Share
application money received for 20,000 shares at ` 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 `25 per share and Securities
Premium at ` 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 ` 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 ` 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 ( ` 2 × 200
Shares) |
|
|
400 |
|
|
|
To Calls-in-Arrears A/c |
|
|
16,00 |
|
|
|
(200
shares of ` 10 each
forfeited for the non-payment amount due ` 8 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,600 |
|
|
|
To Equity Share Capital A/c |
|
|
1,600 |
|
|
|
(160
shares of ` 10 each
re-issued for the sum of ` 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 Schedule III of Companies Act, 2013, the
Company's Balance Sheet is presented as follows.
|
Telecom Ltd. |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
Amount ( `) |
|
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 ( `) |
|
|
1 |
Share
Capital |
|
|
|
|
Authorised Share
Capital |
|
|
|
|
…… Equity
Shares of ` 10 each |
- |
|
|
|
Issued
Share Capital |
|
|
|
|
20,000
Equity Shares of ` 10 each |
2,00,000 |
|
|
|
Subscribed,
Called-up and Paid-up Share Capital |
|
|
|
|
19,960
Equity Shares of ` 10 each |
1,99,600 |
|
|
|
Add:
Shares Forfeited (40 shares × ` 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 = `
2 × 160 = ` 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) |
= |
`80 |
Debit |
Page No 9.122:
Question 73:
Panasonic Ltd. was formed on
1st April, 2010 with an authorised capital of `
2,00,000 , divided into 2,000 Equity Shares of ` 100 each. 1,000 shares were
issued as fully paid to the vendors of building for payment of the purchase
consideration. The remaining 1,000 shares were offered or public subscription
at a premium of
` 5 per share payable as:
|
On
application |
` 10 per
share, |
|
On
allotment |
` 25 per
share(including premium), |
|
On
first call |
` 40 per
share, |
|
On
final call |
` 30 per
share. |
Applications were received for 900 shares which were duly allotted and the
allotment money was received in full . At the time of
the first call, a shareholder who held 100 shares failed to pay the first call
money and his shares were forfeited. These shares were reissued @ ` 60
per share , ` 70 per share paid-up.
Final call has not been made.
You are required to
(i) give necessary journal entries to record the
above transactions and
(ii) show how share capital would appear in the Balance Sheet of the
company.
Answer:
Authorised Capital: 2,000 equity shares at `
100 each
Issued
Capital:
1,000 equity
shares at ` 100 each to the vendor of the
building
1,000 equity
shares at ` 100 each with a premium ` 5 to the public
Applied by
public: 900 equity shares
Payable by
public as:
|
Application |
` |
10 |
|
|
Allotment |
` |
25 |
(20+5) |
|
First Call |
` |
40 |
|
|
Called-up |
|
75 |
(70+5) |
|
Final Call |
` |
30 |
|
|
|
` |
105 |
(100+5) |
|
Books of Panasonic Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
|
|
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 ` 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 ` 10 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Application A/c |
Dr. |
|
9,000 |
|
|
|
To Equity Share Capital |
|
|
9,000 |
|
|
|
(Share
application money of 900 shares at ` 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 ` 25 each including ` 5 premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
22,500 |
|
|
|
To Equity Share Allotment A/c |
|
|
22,500 |
|
|
|
(Share
allotment money received on 900 shares at ` 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 ` 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 ` 100 each,
` 70
called-up forfeited for the non-payment of ` 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 ` 100 each,
re-issued at ` 60 per share as ` 70 paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
2,000 |
|
|
|
To Capital Reserve A/c |
|
|
2,000 |
|
|
|
(Balance
in Share Forfeiture the Account after re-issue transferred to Capital
Reserve) |
|
|
|
|
|
|
|
|
|
|
|
As per the Schedule III of Companies Act 2013, the Company's
Balance Sheet is presented as follows.
|
Panasonic Ltd. |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
Amount ( `) |
|
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 ( `) |
|
|
1 |
Share
Capital |
|
|
|
|
Authorised Share
Capital |
|
|
|
|
2,000
Equity Shares of ` 100 each |
2,00,000 |
|
|
|
Issued
Share Capital |
|
|
|
|
2,000
Equity Shares of ` 100 each |
2,00,000 |
|
|
|
Subscribed,
Called-up and Paid-up Share Capital |
|
|
|
|
1,000
Equity Shares of ` 100 each(for consideration other than cash) |
1,00,000 |
|
|
|
900
Equity Shares of ` 100 each, ` 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) = ` 2,000
Page No 9.123:
Question 74:
VXN Ltd.
invited applications for issuing 50,000 equity shares of ` 10 each at a premium of ` 8 per
share . The amount was payable as follows:
|
On
Application |
` 4 per share (Including ` 2
premium); |
||
|
On
Allotment |
` 6
per share (Including ` 3
premium); |
||
|
On
First Call |
` 5
per share (Including `
1 premium); and |
||
|
On
Second and Final Call |
Balance
Amount |
|
|
The issue was fully subscribed. Gopal, a shareholder holding 200 shares, did
not pay the allotment money and Madhav, a holder of
400 shares, paid his entire share money along with the allotment money. Gopal's
shares were immediately forfeited after allotment .
Afterwards, the first call was made. Krishna, a holder of 100 shares , failed to pay the first call money and Girdhar, a holder of 300 shares, paid the second call money
also along with the first call . Krishna's shares were forfeited immediately
after the first call. Second and final call was made afterwards and was duly received . All the forfeited shares were reissued
at ` 9 per share
fully paid-up.
Pass necessary journal entries for the above transactions in the books of the
company.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit |
Credit |
|
|
|
Bank A/c
(50,000 × 4) |
Dr. |
|
2,00,000 |
|
|
|
To Equity
Share Application A/c |
|
|
|
2,00,000 |
|
|
(Application
money received on 50,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Application A/c |
Dr. |
|
2,00,000 |
|
|
|
To
Equity Share Capital A/c |
|
|
|
1,00,000 |
|
|
To
Securities Premium Reserve A/c |
|
|
|
1,00,000 |
|
|
(Application
money transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Allotment A/c (50,000 ×
6) |
Dr. |
|
3,00,000 |
|
|
|
To
Equity Share Capital A/c |
|
|
|
1,50,000 |
|
|
To
Securities Premium Reserve A/c |
|
|
|
1,50,000 |
|
|
(Allotment
money due on 50,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c
(49,800 × 6) + (400 × 8) |
Dr. |
|
3,02,000 |
|
|
|
To
Equity Share Allotment A/c (49,800 × 5) |
|
|
|
2,98,800 |
|
|
To
Calls–in–Advance A/c (400 × 8) |
|
|
|
3,200 |
|
|
(Allotment
money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c (200 × 5) |
Dr. |
|
1,000 |
|
|
|
Securities
Premium Reserve A/c (200 × 3) |
Dr. |
|
600 |
|
|
|
To
Equity Share Allotment A/c (200 × 6) |
|
|
|
1,200 |
|
|
To
Equity Share Forfeiture A/c (200 × 2) |
|
|
|
400 |
|
|
(200
shares forfeited for non–payment of allotment money including premium of ` 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share First Call A/c (49,800 ×
5) |
Dr. |
|
2,49,000 |
|
|
|
To
Equity Share Capital A/c |
|
|
|
1,99,200 |
|
|
To
Securities Premium Reserve A/c |
|
|
|
49,800 |
|
|
(Call
money due on 49,800 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c
(49,700 × 5) − 2,000 + 900 |
Dr. |
|
2,47,400 |
|
|
|
Calls–in–Advance
A/c (400 × 5) |
Dr. |
|
2,000 |
|
|
|
To Calls–in–Advance A/c (300 × 3) |
|
|
|
900 |
|
|
To
Equity Share First Call A/c |
|
|
|
2,48,500 |
|
|
(Call
money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c (100 × 9) |
Dr. |
|
900 |
|
|
|
Securities
Premium Reserve A/c (100 × 1) |
|
|
100 |
|
|
|
To
Equity Share First Call A/c (100 × 5) |
|
|
|
500 |
|
|
To
Equity Share Forfeiture A/c (100 × 5) |
|
|
|
500 |
|
|
(100
shares forfeited for non-payment of call money) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Second and Final Call A/c (49,700 × 3) |
Dr. |
|
1,49,100 |
|
|
|
To
Equity Share Capital A/c |
|
|
|
49,700 |
|
|
To
Securities Premium A/c |
|
|
|
99,400 |
|
|
(Call
money due on 49,700 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,47,000 |
|
|
|
Calls-in-Advance
A/c (1,200 + 900) |
|
|
2,100 |
|
|
|
To
Equity Share Second and Final Call A/c |
|
|
|
1,49,100 |
|
|
(Call
money received on shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c
(300 × 9) |
Dr. |
|
2,700 |
|
|
|
Equity
Share Forfeiture A/c |
|
|
300 |
|
|
|
To
Equity Share Capital A/c |
|
|
|
3,000 |
|
|
(300
shares re–issued at ` 9 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Forfeiture A/c (400 + 500
− 300) |
Dr. |
|
600 |
|
|
|
To
Capital Reserve A/c |
|
|
|
600 |
|
|
(Profit on
re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Page No 9.123:
Question 75:
Sukanya Ltd. invited applications for issuing 1,00,000 equity shares of ` 10
each. The shares were issued at a premium
of ` 20 per share. The amount was payable as
follows:
|
On
Application and Allotment |
— |
` 14 per
share (including premium of `
10), |
|
On
First Call |
— |
` 8
per share (including premium of ` 5), |
|
On
Final Call |
— |
` 8 per share (including premium
of ` 5). |
Applications for 96,000 shares were received. Rohit , a shareholder
holding 7,000 shares, failed to pay both the calls and Namit
, a holder of 5,000 shares , did not pay the final call.
Shares of Rohit and Namit
were forfeited . Of the forfeited shares 8,000 shares
including all the shares of Rohit
were reissued to Reena at ` 8 per
share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Sukanya Ltd.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
Bank A/c (96,000×14) |
Dr. |
|
13,44,000 |
|
|
|
To Equity Share Application and Allotment A/c |
|
|
|
13,44,000 |
|
|
( Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application and Allotment A/c |
Dr. |
|
13,44,000 |
|
|
|
To Equity Share Capital A/c (96,000×4) |
|
|
|
3,84,000 |
|
|
To Security Premium Reserve A/c (96,000×10) |
|
|
|
9,60,000 |
|
|
(Application money adjusted to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c (96,000×8) |
Dr. |
|
7,68,000 |
|
|
|
To Equity Share Capital A/c (96,000×3) |
|
|
|
2,88,000 |
|
|
To Security Premium Reserve A/c (96,000×5) |
|
|
|
4,80,000 |
|
|
(First call money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (7,68,000 – 56,000) |
Dr. |
|
7,12,000 |
|
|
|
To Equity Share First Call A/c |
|
|
|
7,12,000 |
|
|
(First call money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Second Call A/c (96,000×8) |
Dr. |
|
7,68,000 |
|
|
|
To Equity Share Capital A/c (96,000×3) |
|
|
|
2,88,000 |
|
|
To Security Premium Reserve A/c (96,000×5) |
|
|
|
4,80,000 |
|
|
(Second call money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (7,68,000 – 56,000 – 40,000) |
Dr. |
|
6,72,000 |
|
|
|
To Equity Share Second Call A/c |
|
|
|
6,72,000 |
|
|
(Second call money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
1,20,000 |
|
|
|
Security Premium Reserve A/c (7,000×10 + 5,000×5) |
Dr. |
|
95,000 |
|
|
|
To Equity Share First Call A/c |
|
|
|
56,000 |
|
|
To Equity Share Second Call A/c |
|
|
|
96,000 |
|
|
To Shares Forfeited A/c (7,000×4 + 5,000×7) |
|
|
|
63,000 |
|
|
(Shares Forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (8,000×8) |
Dr. |
|
64,000 |
|
|
|
Shares Forfeited A/c (8,000×2) |
Dr. |
|
16,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
80,000 |
|
|
(Shares Reissued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Forfeited A/c |
Dr. |
|
19,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
19,000 |
|
|
(Profit on Reissue transferred to Capital Reserve A/c) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Amount transferred to
Capital Reserve
Amount forfeited on reissued shares of Rohit = ` 28,000
Amount forfeited on reissued shares of Namit=Amount Forfeited×Shares Re-issuedShares Forfeited
=35,000×1,0005,000=7,000
Total amount forfeited on reissued shares = 28,000 + 7,000 = ` 35,000
Amount transferred to Capital Reserve = 35,000
– 16,000 = ` 19,000
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