Volume-2 | Chapter-1 | Question 41 to 45 | Issue of Share Capital | Ts grewal solution 2020-21 | Class-12th

Page No 8.116:

Question 41:

Answer:

 

Books of Sangita Limited Journal
Date	Particulars		L.F.	Debit Amount ( `)	Credit Amount ( `)
	Bank A/c	Dr.		1,84,000
	To Share Application A/c				1,84,000
	(Share application money received for 92,000 shares at  ` 2 each)
	Share Application A/c	Dr.		1,84,000
	To Share Capital A/c				1,20,000
	To Share Allotment A/c				60,000
	To Bank A/c				4,000
	(Share application of 90,000 shares transferred to Share Capital, and excess adjusted on allotment and remaining amount returned)
	Share Allotment A/c	Dr.		1,80,000
	To Share Capital A/c				1,80,000
	(Share allotment due on 90,000 shares)
	Bank A/c	Dr.		1,08,000
	To Share Allotment A/c				1,08,000
	(Share allotment money received)
	Share capital A/c (4000×10)	Dr.		40,000
	To Share allotment  A/c (4000×3)				12,000
	To Share First and Final Call A/c (4000×2) To Share Forfeiture A/c				20,000 8,000
	(4000 share forfeited)

 

Working notes;

 

Shares applied	Shares allotted	Application Money received	Share capital	Share allotment	Bank (Refund)
40,000	40,000	80,000	80,000	-	-
		40,000×2
50,000	20,000	1,00,000	40,000	60,000
		50,000×2
2,000	Nil	4,000	-	-	4,000
		2,000×2
92,000	90,000	1,84,000	1,20,000	60,000	4,000

 

Due on allotment 60,000×3 Transferred from application money	= =	1,80,000 60,000
Money received on allotment	=	120,000 1,08,000
Calls in arrears	=	12,000

 

No. of shares on which allotment money not received 12000/3=4000 shares

Page No 8.117:

Question 42:

Ankit Ltd. issued 20,000 equity shares of 10 each at a premium of  ` 2 per share, payable as:
 

On Application	:	` 3
On Allotment	:	` 5 (including premium)
On First Call	:	` 2
On Second and Final Call	:	` 2

Vijay was allotted 500 shares. Pass the necessary Journal entries relating to the forfeiture of shares in following cases.

Case I	Vijay did not pay allotment money and his shares were immediately forfeited.
Case II	Vijay did not pay allotment and first call, his shares were forfeited after first call.
Case III	Vijay failed to pay first call and his shares were forfeited immediately.
Case IV	Vijay failed to pay both the calls and his shares were forfeited.

Answer:

Case I:

In the books of Ankit Ltd. Journal
Date	Particulars		L.F.	Debit Amount ( `)	Credit Amount ( `)
	Share Capital A/c (500 × 6)	Dr.		3,000
	Securities Premium Reserve A/c (500 × 2)	Dr.		1,000
	To Share Forfeiture A/c (500 × 3)				1,500
	To Share Allotment A/c (500 × 5)				2,500
	(Being 500 shares forfeited for non-payment of allotment money)

Case II:

In the books of Ankit Ltd. Journal
Date	Particulars		L.F.	Debit Amount ( `)	Credit Amount ( `)
	Share Capital A/c (500 × 8)	Dr.		4,000
	Securities Premium Reserve A/c (500 × 2)	Dr.		1,000
	To Share Forfeiture A/c (500 × 3)				1,500
	To Share Allotment A/c (500 × 5)				2,500
	To Share First Call A/c (500 × 2)				1,000
	(Being 500 shares forfeited for non-payment of allotment and first call)

Case III:

In the books of Ankit Ltd. Journal
Date	Particulars		L.F.	Debit Amount ( `)	Credit Amount ( `)
	Share Capital A/c (500 × 8)	Dr.		4,000
	To Share Forfeiture A/c (500 × 6)				3,000
	To Share First Call A/c (500 × 2)				1,000
	(Being 500 shares forfeited for non-payment of first call)

Case IV:

In the books of Ankit Ltd. Journal
Date	Particulars		L.F.	Debit Amount ( `)	Credit Amount ( `)
	Share Capital A/c (500 × 10)	Dr.		5,000
	To Share Forfeiture A/c (500 × 6)				3,000
	To Share First Call A/c (500 × 2)				1,000
	To Share Second and Final Call (500 × 2)				1,000
	(Being 500 shares forfeited for non-payment of first and second call)

Page No 8.117:

Question 43:

Black Stone Ltd. issued 10,000 Equity Shares of  ` 10 each at a premium of  ` 3 per share payable  ` 5 on application,  ` 5 (including premium) on allotment and the balance on first call. All the shares offered were applied for and allotted. All the money due on allotment was received except on 200 shares. Call was made. All the amount due thereon was received except on 300 shares. Directors forfeited 200 shares on which both allotment and call money were not received.

Pass necessary Journal entries to record the above.

Answer:

Issued and Applied 10,000 Shares at  ` 10 each at a premium of  ` 3 per share

Application	`	5
Allotment	`	5	(2+3)
First and Final Call	`	3
	`	13	(10+3) Called-up

 

In the Books of Black Stone Ltd. Journal
Date	Particulars		L.F.	Debit Amount ( `)	Credit Amount ( `)
	Bank A/c	Dr.		50,000
	To Equity Share Application A/c				50,000
	(Share application money received for 10,000 shares at  ` 5 each)
	Equity Share Application A/c	Dr.		50,000
	To Equity Share capital A/c				50,000
	(Share application money transferred to Share Capital Account)
	Equity Share Allotment A/c	Dr.		50,000
	To Equity Share Capital A/c				20,000
	To Securities Premium				30,000
	(Share allotment due on 10,000 shares at  ` 5 per share including premium  ` 3)
	Bank A/c	Dr.		49,000
	Calls-in-Arrears A/c	Dr.		1,000
	To Equity Share Allotment A/c				50,000
	(All allotment money received except 200 shares)
	Equity Share First and Final Call A/c	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(First and final due on 10,000 shares at  ` 3 per share)
	Bank A/c	Dr.		29,100
	Calls-in-Arrears A/c	Dr.		900
	To Equity Share First and Final Calls A/c				30,000
	(First and final call received on all shares except 300 shares)
	Equity Share Capital A/c	Dr.		2,000
	Securities Premium A/c	Dr.		600
	To Share Forfeiture A/c				1,000
	To Calls-in-Arrears A/c				1,600
	(200 shares forfeited for the non-payment of  ` 8 per share including  ` 3 premium)

Page No 8.117:

Q 44

Answer:

 

Situations	Maximum Permissible  Discount	Minimum Reissue price
1	5	5
2	4	6
3	5	5

Page No 8.117:

Q 45

Answer:

Situations	Gain on Re-Issue of forfeited shares
1	`1200
2	`75

 

 

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