Question 37: Sandesh Ltd. purchased a
running business from Sanchar Ltd. for ` 15,00,000 payable 10% by cheque and
the balance
by the issue of fully paid Equity Shares of `100 each at a premium of 20%. The
assets and
liabilities
consisted of the following:
|
Particulars |
Book Value (`) |
Agreed Value (`) |
|
Building |
5,00,000 |
6,50,000 |
|
Plant and Machinery |
3,00,000 |
2,50,000 |
|
Stock |
6,00,000 |
5,00,000 |
|
Trade Receivables |
2,80,000 |
2,50,000 |
|
Trade Payables |
1,80,000 |
2,00,000 |
Pass the necessary Journal entries in
the books of Sandesh Ltd.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
|
|
|
Goodwill
A/c |
Dr. |
|
50,000 |
|
|
|
Building A/c |
Dr. |
|
6,50,000 |
|
|
|
Plant and Machinery A/c |
Dr. |
|
2,50,000 |
|
|
|
Stock A/c |
Dr. |
|
5,00,000 |
|
|
|
Trade Receivables A/c |
Dr. |
|
2,50,000 |
|
|
|
To Trade Payables A/c |
|
|
|
2,00,000 |
|
|
To Sandesh Ltd. |
|
|
|
15,00,000 |
|
|
(Being Business of Sanchar Ltd at agreed values) |
|
|
|
|
|
|
Sandesh Ltd. |
Dr. |
|
15,00,000 |
|
|
|
To
Bank A/c |
|
|
|
1,50,000 |
|
|
To
Share capital A/c |
|
|
|
11,25,000 |
|
|
To
Securities Premium Reserve |
|
|
|
2,25,000 |
|
|
(Being Shares issued for purchase
consideration of business by issuing shares of `100 each at a premium of 20%) |
|
|
|
|
|
|
|
|
|
|
|
Question 38:
Light Lamps Ltd. issued 50,000 shares of `10 each as fully paid-up to
the promoters for their services to set-up the company. It also issued 2,000
shares of `10
each credited as fully paid-up to the underwriters of shares for their
services. Journalise these transactions.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
|
|
|
|
|
|
|
|
|
|
Incorporation
Expenses A/c |
Dr. |
|
5,00,000 |
|
|
|
To Share Capital A/c (50,000×10) |
|
|
|
5,00,000 |
|
|
(Shares
issued to promoters) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
Commission A/c |
Dr. |
|
20,000 |
|
|
|
To Underwriters’ A/c |
|
|
|
20,000 |
|
|
(Underwriting
commission due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriters’
A/c |
Dr. |
|
20,000 |
|
|
|
To Share Capital A/c (2,000×10) |
|
|
|
20,000 |
|
|
(Shares
issued to underwriters) |
|
|
|
|
|
|
|
|
|
|
|
Question 39:
Alpha Ltd.
issued 20,000 Equity Shares of ` 10 each at
par payable: On application ` 2 per share; on allotment ` 3 per share; on first call ` 3 per share; on second and final
call ` 2 per
share.
Mr. Gupta was allotted 100 shares. Pass necessary
Journal entry relating to the forfeiture of shares in each of the
following alternative cases:
|
Case I |
If Mr.
Gupta failed to pay the allotment money and his shares were immediately
forfeited. |
|
Case II |
If Mr.
Gupta failed to pay allotment money and on his subsequent failure to pay the
first call, his shares were forfeited. |
|
Case III |
If Mr.
Gupta failed to pay the first call and on his subsequent failure to pay the
second and final call, his shares were forfeited. |
Answer:
|
Application |
` |
2 |
|
|||||
|
Allotment |
` |
3 |
|
|||||
|
First Call |
` |
3 |
|
|||||
|
Final Call |
` |
2 |
|
|||||
|
|
|
10 |
|
|||||
|
Books of Alpha Limited |
||||||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
||||
|
|
|
|
|
|
||||
|
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 ` 10 each, ` 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 ` 10 each, ` 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 ` 10 each
forfeited for the non-payment ` 5 each) |
|
|
|
||||
|
|
|
|
|
|
||||
Question 40: Sangita
Limited invited applications for issuing 60,000 shares of `10
each at par. The amount was payable
as
follows: on application `2 per share; on allotment
`3
per share; on first and final call `5
per share.
Applications were received for 92,000 shares.
Allotment was made on the following basis: (a) to
applicants for 40,000 shares: full; (b) to applicants for
50,000 shares: 40%; (c) to applicants for 2,000
shares: nil.
`1,08,000 was
realised on account of allotment (excluding the amount carried from application
money)
and `2,50,000
on account of call. The directors decided to forfeit shares of those applicants
to whom full
allotment
was made and on which allotment money was overdue.
Pass Journal entries in the books of Sangita Limited to record the above transactions. (CBSE
Sample Paper 2013)
Answer:
|
Books of Sangita Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,84,000 |
|
|
|
To Share Application A/c |
|
|
1,84,000 |
|
|
|
(Share
application money received for 92,000 shares at ` 2 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Application A/c |
Dr. |
|
1,84,000 |
|
|
|
To Share Capital A/c |
|
|
1,20,000 |
|
|
|
To Share Allotment A/c |
|
|
60,000 |
|
|
|
To Bank A/c |
|
|
4,000 |
|
|
|
(Share
application of 90,000 shares transferred to Share Capital, and excess
adjusted on allotment and remaining amount returned) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Allotment A/c |
Dr. |
|
1,80,000 |
|
|
|
To Share Capital A/c |
|
|
1,80,000 |
|
|
|
(Share
allotment due on 90,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,08,000 |
|
|
|
To Share Allotment A/c |
|
|
1,08,000 |
|
|
|
(Share
allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital A/c (4000×10) |
Dr. |
|
40,000 |
|
|
|
To Share allotment A/c (4000×3) |
|
|
12,000 |
|
|
|
To Share First and Final Call A/c
(4000×2) To Share Forfeiture A/c |
|
|
20,000 8,000 |
|
|
|
(4000
share forfeited) |
|
|
|
|
|
|
|
|
|
|
|
Working notes;
|
Shares applied |
Shares
allotted |
Application Money
received |
Share
capital |
Share
allotment |
Bank (Refund) |
|
40,000 |
40,000 |
80,000 |
80,000 |
- |
- |
|
|
|
40,000×2 |
|
|
|
|
50,000 |
20,000 |
1,00,000 |
40,000 |
60,000 |
|
|
|
|
50,000×2 |
|
|
|
|
2,000 |
Nil |
4,000 |
- |
- |
4,000 |
|
|
|
2,000×2 |
|
|
|
|
92,000 |
90,000 |
1,84,000 |
1,20,000 |
60,000 |
4,000 |
|
Due on
allotment 60,000×3 Transferred
from application money |
= = |
1,80,000 60,000 |
|
Money received on
allotment |
= |
120,000 1,08,000 |
|
Calls in arrears |
= |
12,000 |
No. of shares on which
allotment money not received 12000/3=4000 shares
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