12th | Ts grewal 2022-2023 Question 21 to 24 | Share Capital - Company Accounting

Question 21:


Blue chip Ltd. was registered on 1st January,2021 with a capital of  `10,00,000 divided into 1,00,000 shares of  ` 10 each . The company issued 42,000 shares of which 40,000 shares were taken up by the public and  ` 1 per share was received with application. On 1st February , these shares were allotted and  ` 2 per share was duly received on 28th February as allotment money. A first call of  ` 3 per share was made on 1st March and the call money on all shares with the exception of 100 shares was received . The final call of  ` 4 per share was made on 1st June and the amount due, with the exception of 400 shares , was received by 30th June. Pass necessary journal ands Cash Book entries and prepare the Balance Sheet as at 30th June, 2021.

Answer:


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

Issued Capital 42,000 shares of  ` 10 each

Applied 40,000 shares

Payable as:

 ` 1 on application

 ` 2 on allotment

 ` 3 on first call

 ` 4 on final call

Books of Blue chip Ltd.

Cash Book

Dr.

 

Cr.

Date

Particulars

L.F.

Bank

 `

Date

Particulars

L.F.

Bank

 `

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

`

Credit

  `

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  ` 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  ` 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  ` 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  ` 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  ` 4 each)

 

 

 

 

 

 

 

 

 

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

Blue chpi Ltd.

Balance Sheet

Particulars

Note No.

 ( `)

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

 ( `)

1

Share Capital

 

 

Authorised Share Capital

 

 

1,00,000 shares of  ` 10 each

10,00,000

 

Issued Share Capital

 

 

 42,000 shares of  ` 10 each

4,20,000

 

Subscribed, Called-up and Paid-up Share Capital

 

 

 40,000 shares of  ` 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 22 The authorised capital of Sarang Ltd. is ` 1,20,00,000 divided into 12,00,000 shares of 10 each. Out of


these, company issued 8,00,000 shares of `10 each at a premium of 20%. The amount per share was

payable as follows:

On Application `2

On Allotment `6 (including premium)

On First Call `2

On Final Call Balance

Public applied for 7,80,000 shares. All the money was duly received. Prepare an extract of Balance Sheet of

Sarang Ltd. as per Schedule ll, Part I of the Companies Act, 2013, disclosing the above information. Also

prepare 'Notes to Accounts' for the same. (Foreign 2013, Modified)

 

Answer:


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

Blue chip Ltd.

Balance Sheet

Particulars

Note No.

 ( `)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a.      Share Capital

b.     Securities premium reserve

1

2

78,00,000

15,60,000

Total

 

93,60,000

 

 

 

II. Assets

 

 

1. Non-Current Assets

 

 

2. Current Assets

 

 

a. Cash and Cash Equivalents

2

93,60,000

Total

 

93,60,000

 

 

 

 

NOTES TO ACCOUNTS

 

Note No.

Particulars

 ( `)

1

Share Capital

 

 

Authorised Share Capital

 

 

12,00,000 shares of  ` 10 each

1,20,00,000

 

Issued Share Capital

 

 

 2,00,000 shares of  ` 10 each

2,00,000

 

 

 

Subscribed, Called-up and Paid-up Share Capital

 

 

7,80,000 shares of  ` 10 each

78,00,000

 

 

 

2

Cash and Cash Equivalents

 

 

Cash at Bank

93,60,000

3

Reserve and surplus

 

Securities premium reserve 

7,80,000 shares at `2 each

 

15,60,000 

 

Question 23:


Ghosh Ltd. made the second and final call on its 50,000 Equity Shares @  ` 2 per share on 1st January, 2016. The entire amount was received on 15th January, 2016 except on 100 shares allotted to Venkat. Pass necessary journal entries for the call money due and received by opening Calls-in-Arrears Account.

Answer:


Books of Ghosh Limited

Journal

Date

Particulars

L.F.

Debit

  `

Credit

 `

2016

 

 

 

 

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  ` 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 24:


Amit Ltd was registered with a capital of  ` 5,00,000 in shares of  ` 10 each and issued 20,000 such shares at a premium of  ` 2 per share, payable as  ` 2 per share on application,  ` 5 per share on allotment (including premium) and  ` 2 per share on first call made three months later. All the money payable on application and allotment was duly received but when the first call was made, one shareholder paid the entire balance on his holding of 300 shares and another shareholder holding 1,000 shares failed to pay the first call money.
Pass journal entries to record the above transactions and show how they will appear in the company's Balance Sheet.

Answer:


Amount Payable on:

Application

 `

 

2

 

Allotment

 `

 

5

 

(3+2)

First Call

 `

 

2

 

Called-up

 `

 

9

 

(7+2)


 

Books of Amit Ltd.

Journal

 

Date

Particulars

L.F.

Debit

 ( `)

Credit

 ( `)

 

 

 

 

 

 

Bank A/c

Dr.

 

40,000

 

 

To Share Application A/c

 

 

40,000

 

(Share application money received for 20,000 shares at  ` 2 per share)

 

 

 

 

 

 

 

 

 

Share Application A/c

Dr.

 

40,000

 

 

To Share Capital A/c

 

 

40,000

 

(Share application of 20,000 shares at  ` 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  ` 5 per share including  ` 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  ` 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  ` 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  ` 2 each, 300 shares paid calls-in-advance at  ` 3 per share and 1,000 shares failed to pay to first call money)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Amit Ltd.

Balance Sheet

Particulars

Note No.

 ( `)

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

 ( `)

1

Share Capital

 

 

Authorised Share Capital

 

 

50,000 shares of  ` 10 each

5,00,000

 

Issued Share Capital

 

 

 20,000 shares of  ` 10 each

2,00,000

 

Subscribed, Called-up and Paid-up Share Capital

 

 

20,000 shares of  ` 10 each,  ` 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

 

 

 

 

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Chapter-9: Company Accounting-Share Capital  | 2022-2023

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