Page No 8.116:
Question 36:
Sure
Ltd. purchased a running business from M/s. Rai
Brothers for a sum of ` 15,00,000 payable `
12,00,000 in fully paid shares of ` 10
each and balance through cheque.
The assets and liabilities consisted of the following:
Plant and
Machinery |
` 4,00,000 |
Stock |
` 4,00,000 |
Building |
` 4,00,000 |
Cash |
` 3,00,000 |
Sundry Debtors |
` 3,00,000 |
Sundry Creditors |
` 2,00,000 |
You are required to pass necessary Journal entries in the company's books.
Answer:
Books of Sure Ltd. |
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Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
|
|
|
|
|
Plant
and Machinery |
Dr. |
|
4,00,000 |
|
|
Building
A/c |
Dr. |
|
4,00,000 |
|
|
Sundry
Debtors A/c |
Dr. |
|
3,00,000 |
|
|
Stock
A/c |
Dr. |
|
4,00,000 |
|
|
Cash
A/c |
Dr. |
|
3,00,000 |
|
|
To Sundry Creditors A/c |
|
|
2,00,000 |
|
|
To M/s Rai Brothers |
|
|
15,00,000 |
|
|
To Capital Reserve A/c |
|
|
1,00,000 |
|
|
(Business
of M/s Rai Brothers took over) |
|
|
|
|
|
|
|
|
|
|
|
M/s
Rai Brothers |
Dr. |
|
12,00,000 |
|
|
To Share Capital A/c |
|
|
12,00,000 |
|
|
(Shares
issued to M/s Rai Brothers) |
|
|
|
|
|
|
|
|
|
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|
M/S
Rai Brothers |
Dr. |
|
3,00,000 |
|
|
To Bank A/c |
|
|
3,00,000 |
|
|
(Payment
made to M/s Rai Brothers through cheque) |
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Page No 8.116:
Question 37:
Sandesh
Ltd. took over the assets of ` 7,00,000 and liabilities of ` 2,00,000 from Sanchar Ltd. for a purchase
consideration of ` 4,59,500. ` 8,500 were paid by accepting a draft in favour of Sanchar Ltd. payable after three months and the
balance was paid by issue of equity shares of ` 10 each at a premium of 10% in favour
of Sanchar Ltd.
Pass necessary journal entries for the above transactions in the books of Sandesh Ltd.
Answer:
Sandesh Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
|
|
|
|
(i) |
Sundry
Assets A/c |
Dr. |
|
7,00,000 |
|
|
To Sundry Liabilities A/c |
|
|
|
2,00,000 |
|
To Sanchar Ltd. |
|
|
|
4,59,500 |
|
To Capital Reserve A/c |
|
|
|
40,500 |
|
(Purchase
of assets and liabilities of Sanchar Ltd.) |
|
|
|
|
|
|
|
|
|
|
(ii) |
Sanchar
Ltd. |
Dr. |
|
4,59,500 |
|
|
To Equity Share Capital A/c |
|
|
|
4,10,000 |
|
To Securities Premium A/c |
|
|
|
41,000 |
|
To Bank A/c |
|
|
|
8,500 |
|
(41,000
Equity Shares issued of ` 10 each at a premium of Re 1 per share and `
8,500 by bank draft) |
|
|
|
|
|
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|
Working Notes:
WN1: Calculation of Number of
Equity Shares
Number
of shares issued= Purchaese consideration/issue
price=4,51,000/11=41,000
Page No 8.116:
Question 38:
Better
Prospect Ltd. acquired land costing ` 1,00,000 and in payment allotted 1,000 Equity Shares
of
` 100 each as fully paid. Further, the
company issued 4,000 Equity Shares to public . The
shares were payable as: ` 30 on application ; ` 30 on
allotment;
` 40 on first and final call.
Applications were received for all shares which were allotted
. All the money was received except the call on 200 shares.
Pass journal entries and prepare Balance Sheet of the company.
Answer:
Issued
to public payable as:
` |
30 |
on
application |
` |
30 |
on
allotment |
` |
40 |
first
and final call |
` |
100 |
Called-up |
Books of Better Prospect Ltd. Journal |
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Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
Land
A/c |
Dr. |
|
1,00,000 |
|
|
To Vendor |
|
|
1,00,000 |
|
|
(Land
purchased from the vendor) |
|
|
|
|
|
|
|
|
|
|
|
Vendor |
Dr. |
|
1,00,000 |
|
|
To Equity Share Capital
A/c |
|
|
1,00,000 |
|
|
(1,000
equity of ` 100
each issued to Vendor) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
1,20,000 |
|
|
To Equity Share
Application A/c |
|
|
1,20,000 |
|
|
(Share
Application money received for 4,000 equity shares at ` 30
per share) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Application A/c |
|
1,20,000 |
|
|
|
To Equity Share Capital |
Dr. |
|
|
1,20,000 |
|
(Share
Application money of 4,000 shares transferred to Equity Share Capital
Account) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Allotment A/c |
Dr. |
|
1,20,000 |
|
|
To Equity Share Capital
A/c |
|
|
1,20,000 |
|
|
(Share
allotment due on 4,000 equity shares of ` 30 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
1,20,000 |
|
|
To Share Allotment A/c |
|
|
1,20,000 |
|
|
(Share
allotment received for 4,000 shares at ` 30 per share) |
|
|
|
|
|
|
|
|
|
|
|
Share
First and Final Call A/c |
Dr. |
|
1,60,000 |
|
|
To Equity Share Capital
A/c |
|
|
1,60,000 |
|
|
(First
and final call due on 4,000 equity shares at 40 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
1,52,000 |
|
|
Calls-in-Arrears
A/c |
Dr. |
|
8,000 |
|
|
To Share First and
Final Call A/c |
|
|
1,60,000 |
|
|
(First
and final call received from 3,800 shares and 200 share failed to pay it) |
|
|
|
|
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As per the Schedule III of Companies Act, 2013, the
Company's Balance Sheet is presented as follows.
Better Prospect Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount ( `) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
4,92,000 |
2. Non-Current
Liabilities |
|
|
3. Current Liabilities |
|
|
Total |
|
4,92,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
a. Fixed Assets |
|
|
i. Tangible Assets |
2 |
1,00,000 |
2. Current Assets |
|
|
a. Cash and Cash
Equivalents |
3 |
3,92,000 |
Total |
|
4,92,000 |
|
|
|
NOTES
TO ACCOUNTS
|
|||
Note No. |
Particulars |
Amount ( `) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
…… shares of ` 100
each |
- |
|
|
Issued Share Capital |
|
|
|
5,000 shares of ` 100
each |
5,00,000 |
|
|
Subscribed, Called-up
and Paid-up Share Capital |
|
|
|
1,000 shares of ` 100
each (for consideration other than cash) |
1,00,000 |
|
|
4,000 shares of ` 100
each |
4,00,000 |
|
|
Less: Calls-in-Arrears |
(8,000) |
4,92,000 |
|
|
|
|
2 |
Tangible Assets |
|
|
|
Land |
1,00,000 |
|
|
|
|
|
3 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
3,92,000 |
|
|
|
|
Page No 8.116:
Question 39:
Light
Lamps Ltd. issued 50,000 shares of ` 10 each as fully paid-up to
the promoters for their services to set-up the company . It also issued 2,000
shares of `
10 each credited as fully paid-up to the underwriters of shares for their
services . journalise these
transactions.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
|
|
|
|
|
Incorporation Expenses A/c |
Dr. |
|
5,00,000 |
|
|
To Share Capital A/c (50,000×10) |
|
|
|
5,00,000 |
|
(Shares issued to promoters) |
|
|
|
|
|
|
|
|
|
|
|
Underwriting Commission A/c |
Dr. |
|
20,000 |
|
|
To Underwriters’ A/c |
|
|
|
20,000 |
|
(Underwriting commission due) |
|
|
|
|
|
|
|
|
|
|
|
Underwriters’ A/c |
Dr. |
|
20,000 |
|
|
To Share Capital A/c (2,000×10) |
|
|
|
20,000 |
|
(Shares issued to underwriters) |
|
|
|
|
|
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Page No 8.116:
Question 40:
Alpha Ltd.
issued 20,000 Equity Shares of ` 10 each at
par payable: On application ` 2 per share; on allotment ` 3 per
share; on first call ` 3 per
share; on second and final call ` 2 per share.
Mr. Gupta was allotted 100 shares. Pass necessary
Journal entry relating to the forfeiture of shares in each of the
following alternative cases:
Case I |
If Mr. Gupta failed to pay the allotment money and his
shares were immediately forfeited. |
Case II |
If Mr. Gupta failed to pay allotment money and on his
subsequent failure to pay the first call, his shares were forfeited. |
Case III |
If Mr. Gupta failed to pay the first call and on his
subsequent failure to pay the second and final call, his shares were
forfeited. |
Answer:
Application |
` |
2 |
|
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Allotment |
` |
3 |
|
|||||
First
Call |
` |
3 |
|
|||||
Final
Call |
` |
2 |
|
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|
|
10 |
|
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Books of Alpha Limited |
||||||||
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
||||
|
|
|
|
|
||||
Case I |
Share
Capital A/c (100×5) |
Dr. |
|
500 |
|
|||
|
To Share Forfeiture A/c |
|
|
200 |
||||
|
To Share Allotment A/c |
|
|
300 |
||||
|
(100
shares of ` 10
each, ` 5
called-up, forfeited for the non-payment of allotment) |
|
|
|
||||
|
|
|
|
|
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Case II |
Share
Capital A/c (100 × 8) |
Dr. |
|
800 |
|
|||
|
To Share Forfeiture A/c |
|
|
200 |
||||
|
To Share Allotment A/c |
|
|
300 |
||||
|
To Share First Call A/c |
|
|
300 |
||||
|
(100
shares of ` 10
each, ` 8
called-up forfeited for non-payment allotment and first-call) |
|
|
|
||||
|
|
|
|
|
||||
Case III |
Share
Capital A/c |
Dr. |
|
1,000 |
|
|||
|
To Share Forfeiture A/c |
|
|
500 |
||||
|
To Share First Call A/c |
|
|
300 |
||||
|
To Share Final Call A/c |
|
|
200 |
||||
|
(100
shares of ` 10
each forfeited for the non-payment ` 5 each) |
|
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