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 |
Credit |
|
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. |
|||||
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 |