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 |
|
|
|
|