Page
No 8.112:
Question 11:
Seema
Ltd. offered for subscription 10,000 shares of ` 25 each, payable ` 5 per share on application, ` 10 per share on allotment (including ` 5 per share as premium), ` 5 per share as first call on the shares and the
balance in two equal amounts at intervals of three months. All the shares were
applied for and allotted. All the money was received except the second call and
final call on 200 and 400 shares respectively. Pass the entries in the
company's Journal, Cash Book and the ledger.
Also show the company's Balance Sheet on completion of the above transactions.
Answer:
Issued
10,000 shares of ` 25 each at premium of ` 5
Applied
10,000 shares
Payable
as:
Application |
` |
5 |
|
Allotment |
` |
10 |
(5 + 5) |
First Call |
` |
5 |
|
Second Call |
` |
5 |
|
Final Call |
` |
5 |
|
|
` |
30 |
(25 + 5) |
Books of Seema Limited |
||||||||
Dr. |
Cr. |
|||||||
Date |
Particulars |
L.F. |
Bank ( `) |
Date |
Particulars |
L.F. |
Bank ( `) |
|
|
|
|
|
|
|
|
|
|
|
Share Application |
|
50,000 |
|
|
|
|
|
|
Share Allotment |
|
1,00,000 |
|
|
|
|
|
|
Share First Call |
|
50,000 |
|
|
|
|
|
|
Share Second Call |
|
49,000 |
|
|
|
|
|
|
Share Final Call |
|
48,000 |
|
Balance c/d |
|
2,97,000 |
|
|
|
|
2,97,000 |
|
|
|
2,97,000 |
|
|
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
|
|
|
|
|
Share
Application A/c |
Dr. |
|
50,000 |
|
|
To Share Capital A/c |
|
|
50,000 |
|
|
(Application
money of 10,000 shares of ` 5 each transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Share
Allotment A/c |
Dr. |
|
1,00,000 |
|
|
To Share Capital A/c |
|
|
50,000 |
|
|
To Securities Premium
A/c |
|
|
50,000 |
|
|
(Share
allotment of 10,000 shares transferred to Share Capital at ` 5
each and
Securities Premium at ` 5
each) |
|
|
|
|
|
|
|
|
|
|
|
Share
First Call A/c |
Dr. |
|
50,000 |
|
|
To Share Capital A/c |
|
|
50,000 |
|
|
(First
call due on 10,000 shares at
` 5
each) |
|
|
|
|
|
|
|
|
|
|
|
Share
Second Call A/c |
Dr. |
|
50,000 |
|
|
To Share Capital A/c |
|
|
50,000 |
|
|
(Second
call due on 10,000 shares at 5 each) |
|
|
|
|
|
|
|
|
|
|
|
Call-in-Arrears
A/c |
Dr. |
|
1,000 |
|
|
To Share Second Call
A/c |
|
|
1,000 |
|
|
(Second
call outstanding on 200 shares at ` 5 each) |
|
|
|
|
|
|
|
|
|
|
|
Share
Final Call A/c |
Dr. |
|
50,000 |
|
|
To Shares Capital A/c |
|
|
50,000 |
|
|
(Final
call due on 50,000 shares of ` to 5 per shares) |
|
|
|
|
|
|
|
|
|
|
|
Calls-in-Arrears
A/c |
Dr. |
|
2,000 |
|
|
To Shares Final Call
A/c |
|
|
2,000 |
|
|
(Final
call outstanding on 400 shares at ` 5 each) |
|
|
|
|
|
|
|
|
|
Share Application Account |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
L.F. |
Amount ( `) |
Date |
Particulars |
L.F. |
Amount ( `) |
|
|
|
|
|
|
|
|
|
To Share Capital |
|
50,000 |
|
By Bank |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
|
|
|
|
|
Share Allotment Account |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
L.F. |
Amount ( `) |
Date |
Particulars |
L.F. |
Amount ( `) |
|
|
|
|
|
|
|
|
|
To Share Capital |
|
50,000 |
|
By Bank |
|
1,00,000 |
|
Securities Premium |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,00,000 |
|
|
|
1,00,000 |
|
|
|
|
|
|
|
|
Share First Call Account |
|
||||||||
Dr. |
|
Cr. |
|
||||||
Date |
Particulars |
L.F. |
Amount ( `) |
Date |
Particulars |
L.F. |
Amount ( `) |
||
|
|
|
|
|
|
|
|
||
|
To Share Capital |
|
50,000 |
|
By Bank |
|
50,000 |
||
|
|
|
|
|
|
|
|
||
|
|
|
50,000 |
|
|
|
50,000 |
||
|
|
|
|
|
|
|
|
||
Share
Second Call Account |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
L.F. |
Amount ( `) |
Date |
Particulars |
L.F. |
Amount ( `) |
|
|
|
|
|
|
|
|
|
To Share Capital |
|
50,000 |
|
By Bank |
|
49,000 |
|
|
|
|
|
Calls-in-Arrears |
|
1,000 |
|
|
|
|
|
|
|
|
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
|
|
|
|
|
Share Final Call Account |
|
|||||||||||||||||||||||||
Dr. |
|
Cr. |
|
|||||||||||||||||||||||
Date |
Particulars |
L.F. |
Amount ( `) |
Date |
Particulars |
L.F. |
Amount ( `) |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
To Share Capital |
|
50,000 |
|
By Bank |
|
48,000 |
|
||||||||||||||||||
|
|
|
|
|
Calls-in-Arrears |
|
2,000 |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
50,000 |
|
|
|
50,000 |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Call-in-Arrears
Account |
||||||||||||||||||||||||||
Dr. |
|
Cr. |
||||||||||||||||||||||||
Date |
Particulars |
L.F. |
Amount ( `) |
Date |
Particulars |
L.F. |
Amount ( `) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
To Share Second Call |
|
1,000 |
|
By Balance c/d |
|
3,000 |
|||||||||||||||||||
|
To Share Final Call |
|
2,000 |
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||
|
|
|
3,000 |
|
|
|
3,000 |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Share Capital Account |
||||||||||||||||||||||||||
Dr. |
|
Cr. |
||||||||||||||||||||||||
Date |
Particulars |
L.F. |
Amount ( `) |
Date |
Particulars |
L.F. |
Amount ( `) |
|||||||||||||||||||
|
To Balance c/d |
|
2,50,000 |
|
By Share Application |
|
50,000 |
|||||||||||||||||||
|
|
|
|
|
By Share Allotment |
|
50,000 |
|||||||||||||||||||
|
|
|
|
|
By Share First Call |
|
50,000 |
|||||||||||||||||||
|
|
|
|
|
By Share Second |
|
50,000 |
|||||||||||||||||||
|
|
|
|
|
By Share Final Call |
|
50,000 |
|||||||||||||||||||
|
|
|||||||||||||||||||||||||
|
|
|
2,50,000 |
|
|
|
2,50,000 |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Securities Premium Account |
||||||||||||||||||||||||||
Dr. |
|
Cr. |
||||||||||||||||||||||||
Date |
Particulars |
L.F. |
Amount ( `) |
Date |
Particulars |
L.F. |
Amount ( `) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
To Balance c/d |
|
50,000 |
|
By Share Allotment |
|
50,000 |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
50,000 |
|
|
|
50,000 |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
As
per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is
presented as follows.
Balance Sheet |
||
Particulars |
Note No. |
Amount (
`) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
2,47,000 |
b. Reserves and Surplus |
2 |
50,000 |
2. Non-Current
Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
2,97,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash
Equivalents |
3 |
2,97,000 |
Total |
|
2,97,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (
`) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
……. shares of ` 25
each |
… |
|
|
Issued Share Capital |
|
|
|
10,000 shares of ` 25
each |
2,50,000 |
|
|
Subscribed, Called-up
and Paid-up Share Capital |
|
|
|
10,000 shares of ` 25
each |
2,50,000 |
|
|
Less:
Calls-in-Arrears |
(3,000) |
2,47,000 |
|
|
|
|
2 |
Reserves and Surplus |
|
|
|
Securities Premium |
50,000 |
|
|
|
|
|
3 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
2,97,000 |
|
|
|
|
Page No 8.113:
Question 12:
Bharat
Ltd. was incorporated with a capital of ` 2,00,000 divided into
shares of
` 10 each. 2,000 shares were offered for
subscription and out of these, 1,800 shares were applied for and allotted. ` 3 per
share (including
` 1 premium) was payable on application, ` 4 per share (including ` 1 premium) on allotment, ` 2 per
share on first call and ` 3 per
share on final call. All the money was received. Give necessary Journal entries
and show share capital in the Balance Sheet.
Answer:
Authorised
Capital 20,000 shares of ` 10 each
Issued
Capital 2,000 shares
Applied
1,800 shares
Payable as: |
|
|
|
Application |
` |
3 |
(2+1) |
Allotment |
` |
4 |
(3+1) |
First Call |
` |
2 |
|
Final Call |
` |
3 |
|
|
|
12 |
(10+2) |
Books of Bharat Limited Journal |
||||||
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
5,400 |
|
|
|
To Share Application A/c |
|
|
5,400 |
||
|
(Application money received for 1,800
shares at ` 3
per shares) |
|
|
|
||
|
|
|
|
|
||
|
Share Application A/c |
Dr. |
|
5,400 |
|
|
|
To Share Capital A/c |
|
|
3,600 |
||
|
To Securities Premium A/c |
|
|
1,800 |
||
|
(Application money of 1,800 share
transferred to Share Capital at ` 2 per share and Securities Premium Re 1 per share) |
|
|
|
||
|
|
|
|
|
||
|
Share Allotment A/c |
Dr. |
|
7,200 |
|
|
|
To Share Capital A/c |
|
|
5,400 |
||
|
To Securities Premium A/c |
|
|
1,800 |
||
|
(Share allotment due on 1,800 shares
at ` 4
per share including Re 1 securities premium) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
7,200 |
|
|
|
To Share Allotment A/c |
|
|
7,200 |
||
|
(Share Allotment money received) |
|
|
|
||
|
|
|
|
|
||
|
Share First Call A/c |
Dr. |
|
3,600 |
|
|
|
To Share Capital A/c |
|
|
3,600 |
||
|
(Share first call due on 1,800 shares
at ` 2
per shares) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
Dr. |
|
3,600 |
|
|
|
To Share First Call A/c |
|
|
3,600 |
||
|
(Share first call money received) |
|
|
|
||
|
|
|
|
|
||
|
Share Final Call A/c |
Dr. |
|
5,400 |
|
|
|
To Share Capital A/c |
|
|
5,400 |
||
|
(Share final call due on 1,800 shares
at ` 3
per share) |
|
|
|
||
|
|
|
|
|
||
|
Bank A/c |
|
5,400 |
|
||
|
To Share Final Call A/c |
Dr. |
|
|
5,400 |
|
|
(Share final call money received) |
|
|
|
||
|
|
|
|
|
||
As per the Schedule III of Companies Act, 2013, the
Company's Balance Sheet is presented as follows.
Bharat Limited |
||
An extract of Balance Sheet |
||
Particulars |
Note No. |
Amount ( `) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
18,000 |
|
|
|
NOTES TO ACCOUNTS
|
||
Note No. |
Particulars |
Amount ( `) |
1 |
Share Capital |
|
|
Authorised Share Capital |
|
|
20,000 shares of ` 10
each |
2,00,000 |
|
Issued Share Capital |
|
|
2,000 shares of ` 10
each |
20,000 |
|
Subscribed, Called-up
and Paid-up Share Capital |
|
|
1,800 shares of ` 10
each |
18,000 |
|
|
|
Page No 8.113:
Question 13:
Authorized
capital of Suhani Ltd . is `
45,00,000 divided into 30,000 shares of ` 150
each . Out of these company issued 15,000 shares
of ` 150 each at a premium of ` 10 per share . the amount
was payable as follows:
` 50 per
share on application , ` 40 per share on
allotment (including premium ), ` 30 per
share on firs t call and balance on final call . Public applied for 14,000
shares. All the money was duly received .
Prepare an extract of Balance Sheet of Suhani Ltd . as per Schedule III , Part I
of the companies Act, 2013 disclosing the above information . Also prepare
'Notes to Accounts ' for the same.
Answer:
Suhani Ltd. |
||
Balance
Sheet |
||
Particulars |
Note
No. |
Amount ( `) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
21,00,000 |
b. Reserves and Surplus |
2 |
1,40,000 |
2. Non-Current Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
22,40,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
22,40,000 |
Total |
|
22,40,000 |
|
|
|
NOTES TO ACCOUNTS
|
||
Note
No. |
Particulars |
Amount ( `) |
1 |
Share Capital |
|
|
Authorised Share Capital |
|
|
30,000 shares of ` 150 each |
45,00,000 |
|
Issued Share Capital |
|
|
15,000 shares of ` 150 each |
22,50,000 |
|
Subscribed, Called-up and Paid-up
Share Capital |
|
|
14,000 shares of ` 150 each |
21,00,000 |
|
|
|
2 |
Reserves and Surplus |
|
|
Securities Premium |
1,40,000 |
|
|
|
3 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
22,40,000 |
|
|
|
Page No 8.113:
Question 14:
Super
star Ltd. company invited applications for 75,000 equity shares of ` 100 each. The application
money received @ ` 30 per share was `
27,00,000. Name the kind of subscription. List the three
alternatives for allotting these shares.
Answer:
Total
Money Received on Application = `
27,00,000
Application money per share = ` 30
Number of shares applied by the public=Total Appliaction money ReceivedApplication money per share=27,00,00030=90,000 shares
Share Applications invited by the company = 75,000
Since, Number of Shares applied for by the company exceeds the number of shares
offered by the company by 15,000 shares (i.e. 90,000 – 75,000). Therefore, it
is a case of oversubscription of shares.
The alternatives available with the company are as follows:
1. By rejecting the excess applications and allotting only 75,000 shares.
2. By making allotment to the 90,000 shares applicants
on a proportionate or pro-rata basis.
3. By making allotment to some on pro-rata basis and rejecting some applicants.
For e.g.: 85,000 share applicants are given 75,000 shares on pro-rata basis and
the remaining 5,000 shares have been rejected.
Page No 8.113:
Question 15:
Sangam
Ltd. invited applications for 10,000 Equity Shares of `
100 each issued at par. The amount was payable on application. The issue was
oversubscribed by 2,000 shares and allotment was made on pro rata
basis. Pass necessary Journal entries.
Answer:
In the books of Sangam
Ltd. Journal |
|||||
Date |
Particulars |
|
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
Bank A/c (12,000 × 100) |
Dr. |
|
12,00,000 |
|
|
To Share Application and Allotment A/c (12,000 ×
100) |
|
|
|
12,00,000 |
|
(Being application money received on 12,000 equity shares) |
|
|
|
|
|
|
|
|
|
|
|
Share Application and Allotment A/c |
Dr. |
|
12,00,000 |
|
|
To Share Capital A/c (10,000 × 100) |
|
|
|
10,00,000 |
|
To Bank A/c (2,000 × 100) |
|
|
|
2,00,000 |
|
(Being share application and allotment money adjusted for
10,000 |
|
|
|
|
|
shares and balance money refunded) |
|
|
|
|
Note: Since the
entire amount is receivable on application so the excess money on 2,000 shares
has been refunded and allotment is made on a pro-rata basis to 12,000
shareholders.