Volume-2 | Chapter-1 | Question 21 to 25 | Issue of Share Capital | Ts grewal solution 2020-21 | Class-12th

Page No 8.114:

Question 21:

Blue chip Ltd. was registered on 1st January,2011 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, 2011.

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 Amount  `	Credit  Amount   `
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.	Amount  ( `)
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		Amount ( `)
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

Page No 8.114:

Question 22

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.	Amount  ( `)
I. Equity and Liabilities
1. Shareholders’ Funds
a.      Share Capital b.     Securities premium reserve	1 2	1,20,00,000 15,60,000
Total		1,35,60,000
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	1,35,60,000
Total		1,35,60,000

 

NOTES TO ACCOUNTS

Note No.	Particulars		Amount ( `)
1	Share Capital
	Authorised Share Capital
	12,00,000 shares of  ` 10 each		1,20,00,000
	Issued Share Capital
	8,00,000 shares of  ` 10 each		8,00,000
	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		1,35,60,000
3	Reserve and surplus
	Securities premium reserve  7,80,000 shares at `2 each		15,60,000

Page No 8.114:

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 Amount   `	Credit  Amount   `
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)

 

Page No 8.114:

Question 24:

Star 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 Star Ltd. Journal
Date	Particulars		L.F.	Debit Amount  ( `)	Credit  Amount ( `)
	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.

Star Ltd.
Balance Sheet
Particulars	Note No.	Amount  ( `)
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		Amount ( `)
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

Page No 8.115:

Question 25:

Green Ltd. issued 8,000 Equity Shares of  ` 10 each.  ` 5 per share was called, payable  ` 2 on application,  ` 1 on allotment ,  ` 1 on first call and  ` 1 on second call. All the money was duly received with the following exceptions:
   A who holds 250 shares paid nothing after application.
  B who holds 500 shares paid nothing after allotment.
  C who holds 1,250 shares paid nothing after first call.
Prepare Journal and the Balance Sheet.

Answer:

Issued Capital 5,000 Shares of  `10 each  ` 5 called up

		shares	A	B
Application	` 2	8,000				=	8,000
Allotment	` 1	8,000	-250			=	7,750
First call	` 1	8,000	-250	-500		=	7,250
Second call	` 1	8,000	-250	-500	-1250	=	6,000
Called-up	` 5

s

Books of Green Ltd. Journal
Date	Particulars		L.F.	Debit Amount ( `)	Credit Amount ( `)
	Bank A/c	Dr.		16,000
	To Share Application A/c				16,000
	(Share application money received for 8,000 shares at  `2 each)
	Share Application A/c	Dr.		16,000
	To Share Capital A/c				16,000
	(Application money transferred to Share Capital)
	Share Allotment A/c	Dr.		8,000
	To Share Capital A/c				8,000
	(Allotment due on 8,000 shares at Re 1 each)
	Bank A/c	Dr.		7,750
	Call-in-Arrears A/c	Dr.		250
	To Share Allotment A/c				8,000
	(Allotment money received on 7,750 shares and 250 shares failed to pay it)
	Share First Call A/c	Dr.		8,000
	To Share Capital A/c				8,000
	(First call due on 8,000 shares at Re 1 each)
	Bank A/c	Dr.		7,250
	Calls in Arrears A/c	Dr.		750
	To Share First Call A/c				8,000
	(Share first call money received on 7,250 shares and 750 shares failed to pay it)
	Share Second Call A/c	Dr.		8,000
	To Share Capital A/c				8,000
	(Share second call due on 8,000 shares at  ` l each)
	Bank A/c	Dr.		6,000
	Call-in-Arrears A/c	Dr.		2,000
	To Share Second Call A/c				8,000
	(Share second call money received on 6,000 shares and 2000 shares failed to pay it)

 

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

Green Ltd.
Balance Sheet
Particulars	Note No.	Amount  ( `)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	37,000
2. Non-Current Liabilities
3. Current Liabilities
Total		37,000
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	37,000
Total		37,000

NOTES TO ACCOUNTS

Note No.	Particulars		Amount ( `)
1	Share Capital
	Authorised Share Capital
	……. shares of  ` 10 each		-
	Issued Share Capital
	8,000 shares of  ` 10 each		80,000
	Subscribed, Called-up and Paid-up Share Capital
	8,000 shares of  ` 10 each,  ` 5 Called-up and Paid-up	40,000
	Less: Calls-in-Arrears	(3,000)	37,000
2	Cash and Cash Equivalents
	Cash at Bank		37,000

 

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