Volume-2 | Chapter-1 | Question 26 to 30 | Issue of Share Capital | Ts grewal solution 2020-21 | Class-12th

Page No 8.115:

Question 26:

Bharat Ltd made the first call of  ` 2 per share on its 1,00,000 Equity Shares on 1st March , 2006. Ashok, a shareholder, holding 800 shares paid the second and final call amount along with the first call money. The second and final call amount was  ` 3 per share. Pass necessary journal entries for recording  the above using the Calls-in Advance Account.



Answer:

Books of Bharat Ltd.

Journal

Date

Particulars

L.F.

Debit

Amount

 `

Credit

Amount

 `

2006

 

 

 

 

 

Equity Share First Call A/c

Dr.

 

2,00,000

 

 

To Equity Share Capital A/c

 

 

2,00,000

 

(Shares first call due on 1,00,000 shares at  ` 2 per share)

 

 

 

 

 

 

 

 

Mar 01

Bank A/c

Dr.

 

2,02,400

 

 

To Equity Share First Call A/c

 

 

2,00,000

 

To Call-In-Advance A/c

 

 

2,400

 

(Share first call received with call-in-advance of 800 shares at  ` 3 per share)

 

 

 

 

 

 

 

 



Page No 8.115:

Question 27:



Answer:

 

Particulars

Amount

( `)

Share Capital

 

 A

Authorised Share Capital

 

 

10,000 shares of  ` 100 each

10,00,000

 B

Issued Share Capital

 

 

9,000 shares of  ` 100 each

9,00,000

 C

Subscribed Share Capital

 

 

9,000 shares of  ` 100 each,

9,00,000 

D

    Called-up share capital

 

 

9,000 shares of `60 each

5,40,000

 E

    Paid – up share capital

      9,000 shares of `60 each                                       5,40,000

 Less: Calls-in-arrears (550×20)                                       11,000

 

 

5,39,000

F

    Calls-in-arrears

      Money received on Allotment `1,69,000

No. of shares on allotment money received=

= 1,69,000/20= 8,450

No. of shares on allotment money have not been received

=9,000-8,450=550

Allotment money not received= 550×20

 

 

 

 

 

 

11,000



Page No 8.115:

Question 28:

2,000 Equity Shares of  ` 10 each  were issued to  Limited  from whom assets of  ` 25,000 were acquired .
Pass Journal entry.



Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

 `

Credit

 Amount

 `

 

 

 

 

 

 

Assets A/c

Dr.

 

25,000

 

 

To X Ltd.

 

 

25,000

 

(Assets bought from X Ltd.)

 

 

 

 

 

 

 

 

 

X Ltd.

Dr.

 

25,000

 

 

To Share Capital A/c

 

 

20,000

 

  To Securities Premium A/c

 

 

5,000

 

(2,000 shares of  ` 10 each issued to X Ltd.)

 

 

 

 

 

 

 

 



Page No 8.115:

Question 29:

'Amrit Dhara Ltd.' issued 800 Equity Shares of  ` 100 each at a premium of 25% as fully paid-up in consideration of the purchase of plant and machinery of  ` 1,00,000.
Pass entries in company's Journal.



Answer:

Books of Amrit Dhara Limited
Journal

Date

Particulars

L.F.

Debit

Amount

( `)

Credit

Amount

( `)

 

Plant & Machinery A/c

Dr.

 

1,00,000

 

 

To Vendor A/c

 

 

 

1,00,000

 

(Machinery purchased)

 

 

 

 

 

 

 

 

 

 

 

Vendor A/c

Dr.

 

1,00,000

 

 

To Equity Share Capital A/c (800 × 100)

 

 

 

80,000

 

To Securities Premium A/c (800 × 25)

 

 

 

20,000

 

(Shares issued to vendor at a premium of  ` 25 per share)

 

 

 

 

 

 

 

 

 



Page No 8.115:

Question 30:

Rajan Ltd . purchased assets from Geeta & Co . for  ` 5,00,000. A sum of  ` 1,00,000 was paid by means of a bank draft and for the balance due Rajan Ltd. issued equity Shares of  ` 10 each at a premium of 25%. journalise the above transactions in the books of the company.



Answer:

Books of Rajan Limited

Journal

Date

Particulars

L.F.

Debit

 Amount

 `

Credit

 Amount

 `

 

 

 

 

 

 

Assets A/c

Dr.

 

5,00,000

 

 

To Geeta & Co.

 

 

5,00,000

 

(Assets purchased from Geeta & Co.)

 

 

 

 

 

 

 

 

 

Geeta & Co.

Dr.

 

1,00,000

 

 

To Bank A/c

 

 

1,00,000

 

(Payment made to Geeta & Co.)

 

 

 

 

 

 

 

 

 

Geeta & Co.

Dr.

 

4,00,000

 

 

To Equity Share Capital A/c

 

 

3,20,000

 

To Securities Premium A/c

 

 

80,000

 

(32,000 equity shares of  ` 10 issued at 25% premium)

 

 

 

 

 

 

 

 

 

Working Note-

 

Number of shares issued=4,00,000/10+2.5=32,000 shares      

 


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