Question 77:
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 ( `) |
Credit ( `) |
|
|
|
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
Question 78:
Alfa Ltd.
invited applications for issuing 75,000 equity shares of ` 10 each. The amount was payable as
follows:
|
On
application and allotment |
— |
` 4 per
share , |
|
On
first Call |
— |
` 3
per share, |
|
On
second and final Call |
— |
balance. |
Applications for 1,00,000 shares were received. Shares
were allotted to all the applicants on pro rata basis and excess money
received with applications was transferred towards sums due
on first call. Vibha who was allotted 750
shares failed to pay the first call . Her shares were
immediately forfeited . Afterwards the second call was
made. The amount due on second call was also received except on 1,000 shares
applied by Monika . Her shares were also forfeited.
All the forefited shares were reissued to Mohit for `9,000 as fully paid-up.
Pass necessary journal entries in the Books of Alfa Ltd .
for the above transactions.
Answer:
|
In the books of Alfa Ltd. Journal Entry |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
Bank A/c |
Dr. |
|
4,00,000 |
|
|
|
To
Equity Share Application and Allotment A/c |
|
|
|
4,00,000 |
|
|
(Application
money received on 1,00,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Application and Allotment A/c |
Dr. |
|
4,00,000 |
|
|
|
To
Equity Share Capital A/c |
|
|
|
3,00,000 |
|
|
To
Equity Share First Call A/c |
|
|
|
1,00,000 |
|
|
(Application
money transferred to share capital account and excess money is adjusted in
first call account) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share First Call A/c |
Dr. |
|
2,25,000 |
|
|
|
To Equity
Share Capital A/c |
|
|
|
2,25,000 |
|
|
(Amount
due on first call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c
(2,25,000 – 1,00,000 – 1,250) |
Dr. |
|
1,23,750 |
|
|
|
To
Equity Share First Call A/c |
|
|
|
1,23,750 |
|
|
(Amount
received on first call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c |
Dr. |
|
5,250 |
|
|
|
To
Equity Share Forfeiture A/c |
|
|
|
4,000 |
|
|
To
Equity Share First Call A/c |
|
|
|
1,250 |
|
|
(Vibha’s shares were forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Second and Final Call A/c |
Dr. |
|
2,22,750 |
|
|
|
To Equity
Share Capital A/c |
|
|
|
2,22,750 |
|
|
(Amount
due on second and final call after forfeiting Vibha’s
shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c
(2,22,750 – 2,250) |
Dr. |
|
2,20,500 |
|
|
|
To
Equity Share Second and Final Call A/c |
|
|
|
2,20,500 |
|
|
(Amount
received on second and final call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c |
Dr. |
|
7,500 |
|
|
|
To
Equity Share Forfeiture A/c |
|
|
|
5,250 |
|
|
To
Equity Share Second and Final Call A/c |
|
|
|
2,250 |
|
|
(Monika’s
shares were forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
9,000 |
|
|
|
Equity
Share Forfeiture A/c |
Dr. |
|
6,000 |
|
|
|
To Equity
Share Capital A/c |
|
|
|
15,000 |
|
|
(Forfeited
shares were reissued for ` 9,000 as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Forfeiture A/c |
Dr. |
|
3,250 |
|
|
|
To Capital
Reserve A/c |
|
|
|
3,250 |
|
|
(Excess
amount on forfeiture is transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation
of Amount not received on First Call
Share applied by vibha=1,00,000/75,000×750= 1,000
share
Amount received on 1000 share@4 `. Each= `.
4,000
Amount transferred to
share capital A/c(750×4)=3,000
Excess application and
allotment money received=1000
Amount due on first call @3 `. 2,250
Amount not received on first
call @3=1,250(2,250-1,000)
WN2: Calculation of Amount not received on Second Call
Allotted share to Monika =75,000×1000/1,00,000=750
shares
Amount not received on second call=2,250(750×3)
Question 79:
Himalaya
Company Limited issued for public subscription 1,20,000
equity shares of ` 10
each at a premium for ` 2 per
share payable as under:
|
With
Application |
— |
` 3 per
share, |
|
On
allotment (including
premium) |
— |
` 5
per share, |
|
On
First call |
— |
` 2
per share |
|
On
Second and Final call |
— |
` 2 per
share. |
Applications were received for 1,60,000 shares .
Allotment was made on pro rata basis . Excess
money on application were adjusted against the amount due on allotment.
Rohan to whom 4,800 shares were allotted failed to pay for the two calls. These
shares were subsequently forfeited after the
second call was made . All the shares forfeited were reissued to Teena as fully paid at ` 7 per share.
Record journal entries and show the transactions relating to share capital in
the company's Balance Sheet.
Answer:
|
Books of Himalaya Company Ltd. Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
|
|
|
Bank A/c |
Dr. |
|
4,80,000 |
|
|
|
To Share
Application A/c |
|
|
4,80,000 |
|
|
|
(Share
Application money received for 1,60,000 shares @ ` 3 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Application A/c |
Dr. |
|
4,80,000 |
|
|
|
To Equity
Share Capital A/c |
|
|
3,60,000 |
|
|
|
To Share
Allotment A/c |
|
|
1,20,000 |
|
|
|
(Share
Application for 1,20,000 shares @ ` 3 per share transferred to Share Capital Account
and remaining amount adjusted to Allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Allotment A/c |
Dr. |
|
6,00,000 |
|
|
|
To Equity
Share Capital A/c |
|
|
3,60,000 |
|
|
|
To
Securities Premium |
|
|
2,40,000 |
|
|
|
(Share
Allotment due on 1,20,000 shares @ ` 5 per share including ` 2 Securities Premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
4,80,000 |
|
|
|
To Share
Allotment A/c |
|
|
4,80,000 |
|
|
|
(Share
allotment for 1,20,000 shares @ ` 5 per share received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
First Call A/c |
Dr. |
|
2,40,000 |
|
|
|
To Equity
Share Capital A/c |
|
|
2,40,000 |
|
|
|
(Share
First Call due on 1,20,000 shares @ ` 2 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,30,400 |
|
|
|
To Share
First Call A/c |
|
|
2,30,400 |
|
|
|
(Share
First Call received on 1,15,200 shares @ ` 2 per share and 4,800 shares
failed to pay) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Final Call A/c |
Dr. |
|
2,40,000 |
|
|
|
To Equity
Share Capital A/c |
|
|
2,40,000 |
|
|
|
(Share
Final call due on 1,20,000 shares @ ` 2 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,30,400 |
|
|
|
To Share
Final Call A/c |
|
|
2,30,400 |
|
|
|
(Share
Final Call received on 1,15,200 shares @ ` 2 per share and 4,800 shares
failed to pay) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c (4,800×10) |
Dr. |
|
48,000 |
|
|
|
To
Share First Call A/c (4,800×2) |
|
|
|
9,600 |
|
|
To
Share Final Call A/c (4,800×2) |
|
|
|
9,600 |
|
|
To
Share Forfeiture A/c (4,800×6) |
|
|
|
28,800 |
|
|
(4,800
shares forfeited for the non–payment of First Call and Final Call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
33,600 |
|
|
|
Share
Forfeiture A/c |
Dr. |
|
14,400 |
|
|
|
To
Equity Share Capital |
|
|
|
48,000 |
|
|
(4,800
shares reissued @ ` 7 per share, fully paid–up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
14,400 |
|
|
|
To Capital
Reserve A/c |
|
|
|
14,400 |
|
|
(Share
forfeiture balance of 4,800 shares transferred to Capital Reserve
Account) |
|
|
|
|
|
|
|
|
|
|
|
|
Himalaya Company Limited |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
( `) |
|
I. Equity
and Liabilities |
|
|
|
1.
Shareholders’ Funds |
|
|
|
a. Share
Capital |
1 |
12,00,000 |
|
b.
Reserves and Surplus |
2 |
2,54,400 |
|
2.
Non-Current Liabilities |
|
|
|
3. Current
Liabilities |
|
|
|
Total |
|
14,54,400 |
|
II. Assets |
|
|
|
1.
Non-Current Assets |
|
|
|
2. Current
Assets |
|
|
|
a. Cash
and Cash Equivalents |
3 |
14,54,400 |
|
Total |
|
14,54,400 |
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
( `) |
|
|
1 |
Share
Capital |
|
|
|
|
Authorised Share Capital |
|
|
|
|
……..
shares of ` 10 each |
– |
|
|
|
Issued
Share Capital |
|
|
|
|
1,20,000
shares of ` 10 each |
12,00,000 |
|
|
|
Subscribed,
Called-up and Paid-up Share Capital |
|
|
|
|
1,20,000
shares of ` 10 each |
12,00,000 |
|
|
|
|
|
|
|
2 |
Reserves
and Surplus |
|
|
|
|
Securities
Premium |
2,40,000 |
|
|
|
Capital
Reserve |
14,400 |
2,54,400 |
|
|
|
|
|
|
3 |
Cash and
Cash Equivalents |
|
|
|
|
Cash at Bank |
14,54,400 |
|
|
|
|
|
|
Question 80:
Saregama Ltd.
invited applications for issuing 80,000 equity shares of `100 each at a
premium of `10. The amount was
payable as follows:
On
Application ` 30
On
Allotment ` 30 (including a
premium of ` 10)
On
First Call ` 30
On
Final Call Balance
Applications
of 1,20,000 shares were received. Allotment was made
on pro rata basis to all applicants. Excess money received on application was
adjusted on sums due on allotment. Dhwani, who was
allotted 1,600 shares, failed to pay allotment money and Sargam
who applied for 6,000 shares did not pay first call money. These shares were
forfeited immediately after first call. 2,000 of these shares (including all
shares of Dhwani were issued to Tarang
for ` 95 per share as ` 80 paid-up. Pass
necessary Journal entries in books of Saregama Ltd.
by opening Calls-in-Arrear and Calls-in-Advance Accounts, if final call has not
been made.
(CBSE
Sample Paper 2019)
Answer:
|
In the
books of Saregama Ltd. |
|||||
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
|
|
|
|
|
|
|
|
|
|
Bank A/c
(1,20,000×30) |
Dr. |
|
36,00,000 |
|
|
|
To
Equity Share application A/c |
|
|
|
36,00,000 |
|
|
(Being
share application money received) |
|
|
|
|
|
|
|||||
|
|
Equity
Share application A/c |
Dr. |
|
36,00,000 |
|
|
|
To
Equity Share Capital A/c |
|
|
|
24,00,000 |
|
To Equity Share Allotment A/c (Being
share application money transferred to share capital and allotment) |
12,00,000 |
||||
|
|
|
|
|
|
|
|
|
|||||
|
|
Equity
Share Allotment A/c (80,000 × 30) |
Dr. |
36,00,000 |
||
|
|
To
Equity Share Capital A/c (80,000 × 20) |
|
|
|
16,00,000 |
|
To securities premium reserve A/c (80,000 × 10) |
8,00,000 |
||||
|
|
(Allotment
money due) |
|
|||
|
|
|
|
|||
|
|
Bank A/c |
Dr. |
11,76,000 |
||
|
Calls in
arrears A/c |
Dr. |
24,000 |
|||
|
|
To
Equity Share Allotment A/c |
|
12,00,000 |
||
|
|
(Allotment
money received) |
|
|||
|
|
|
|
|||
|
|
Equity
Share First Call A/c (80,000 ×
3) |
Dr. |
24,00,000 |
||
|
|
To
Equity Share Capital A/c |
|
24,00,000 |
||
|
|
(Call
money due) |
|
|||
|
|
|
|
|||
|
|
Bank A/c
(1,60,000 × 2) |
Dr. |
22,32,000 |
||
|
Calls in
arrears A/c (1600×30) |
Dr. |
48,000 |
|||
|
Calls in
arrears A/c (4000×30) |
Dr. |
1,20,000 |
|||
|
|
To
Equity Share First Call A/c |
|
24,00,000 |
||
|
|
(Call
money received) |
|
|||
|
|
|
|
|||
|
|
Equity
Share Capital A/c |
Dr. |
1,28,000 |
||
|
Securities
premium reserve a/c |
Dr. |
16,000 |
|||
|
|
To Calls in arrears A/c (allotment) |
|
24,000 |
||
|
To Calls in arrears A/c (1600×30) |
48,000 |
||||
|
To share forfeited A/c (2400×30) |
72,000 |
||||
|
(Being
shares of Dhanwani forfeited) |
|
||||
|
|
|
||||
|
Equity
Share Capital A/c (400×95) |
Dr. |
38,000 |
|||
|
To Calls in arrears A/c (400×80) |
32,000 |
||||
|
|
To share forfeited A/c (400×15) |
6,000 |
|||
|
|
(Being
shares of Dhanwani forfeited) |
|
|||
|
Share
forfeiture A/c [72,000+(400×50)] |
Dr. |
92,000 |
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|
To Capital Reserve A/c |
92,000 |
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|
(Being
balance of forfeiture transferred to Capital reserve) |
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