Page No 8.120:
Question 61:
Answer:
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Journal |
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Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
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Building A/c
(70,000 × 10) |
Dr. |
|
7,00,000 |
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To M/s Star Ltd. A/c |
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7,00,000 |
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(Being building bought) |
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M/s Star Ltd. A/c |
Dr. |
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7,00,000 |
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To Equity Share Capital A/c |
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7,00,000 |
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(Being purchase consideration paid in equity share of ` 10 each) |
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Bank A/c (2,00,000×3) |
Dr. |
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6,00,000 |
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To Equity Share application A/c |
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6,00,000 |
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(Being share application money received) |
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Equity Share application A/c |
Dr. |
|
6,00,000 |
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To Equity Share Capital A/c |
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|
6,00,000 |
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(Being share application money transferred to share
capital ) |
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Equity Share Allotment A/c (2,00,000 × 2) |
Dr. |
4,00,000 |
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To Equity Share Capital A/c |
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|
4,00,000 |
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(Allotment money due) |
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Bank A/c |
Dr. |
4,00,000 |
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To Equity Share Allotment A/c |
|
4,00,000 |
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(Allotment money received) |
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Equity Share First Call A/c (2,00,000 × 2) |
Dr. |
4,00,000 |
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To Equity Share Capital A/c |
|
4,00,000 |
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(Call money due) |
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Bank A/c (1,60,000 × 2) |
Dr. |
3,20,000 |
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To Equity Share First Call A/c |
|
3,20,000 |
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(Call money received) |
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Equity Share Second & final Call A/c (2,00,000 × 3) |
Dr. |
6,00,000 |
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To Equity Share Capital A/c |
|
6,00,000 |
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(Call money due) |
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Bank A/c (1,00,000 × 3) |
Dr. |
3,00,000 |
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To Equity Share
Second & final Call A/c |
|
3,00,000 |
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(Call money received except 1,00,000 shares) |
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Equity Share Capital A/c (10,000×10) |
Dr. |
1,00,000 |
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To Equity Share Allotment A/c (10,000×2) |
20,000 |
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To Equity Share First Call A/c (10,000×2) |
|
20,000 |
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To Equity Share
Second & final Call A/c (10,000×3) |
30,000 |
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To Equity share
forfeiture A/c (10,000×3) |
30,000 |
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(Being 10,000 share forfeited) |
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Bank A/c |
Dr, |
1,20,000 |
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To Equity Share
Capital A/c To Securities
premium reserve a/c |
1,00,000 20,000 |
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(Being 10,000 forfeited shares, re-issued @ `12 per share fully paid-up) |
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Equity share forfeiture A/c To Capital Reserve
A/c |
Dr. |
30,000 |
30,000 |
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(Being balance of share forfeiture transferred to Capital
reserve a/c) |
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Page No 8.120:
Question 62:
Midee Ltd. invited applications for issuing 27,000 shares
of ` 100 each payable as follows:
` 50—per share on
application;
` 10—per share on allotment; and
Balance—on First and Final call.
Applications were received for 40,000 shares. Full allotment was made to the
applicants of 7,000 shares. The remaining applicants were allotted 20,000
shares on pro rata basis. Excess money received on applications was
adjusted towards allotment and call.
Asha, holding 600 shares was belonged to the
category of applicants to whom full allotment was made ,paid the call money at
the time of allotment . Ankur, who belonged to the category of applicants to
whom shares were allotted on pro rata basis
did not pay anything after application on his 200 shares . Ankur's
shares were forfeited after the First and Final call. These shares were later
reissued at
` 105 per share as fully paid-up.
Pass necessary journal entries in the books of Midee Ltd .
for the above transactions, by opening
Calls-in-Arrears and Calls-in-Advance Accounts wherever necessary.
Answer:
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Journal |
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Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
Bank A/c (40,000 × 50) |
Dr. |
|
20,00,000 |
|
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To Equity Share Application A/c |
|
|
|
20,00,000 |
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(Application money received) |
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Equity Share Application A/c |
Dr. |
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20,00,000 |
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To Equity Share Capital A/c(27,000 × 50) |
|
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|
13,50,000 |
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To Calls in Advance A/c(13,000 × 50) |
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6,50,000 |
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(Application money transferred) |
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Equity Share Allotment A/c (27,000 × 10) |
Dr. |
|
2,70,000 |
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To Equity Share Capital A/c |
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|
2,70,000 |
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(Allotment money due) |
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Bank A/c |
Dr. |
|
94,000 |
|
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Calls in Advance A/c |
|
|
2,00,000 |
|
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To Equity Share Allotment A/c |
|
|
|
2,70,000 |
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To Calls–in–Advance A/c |
|
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|
24,000 |
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(Allotment money received) |
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Equity Share First Call A/c (27,000 × 40) |
Dr. |
|
10,80,000 |
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To Equity Share Capital A/c |
|
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|
10,80,000 |
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(Call money due) |
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Bank A/c |
Dr. |
|
6,26,500 |
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Calls–in–Advance A/c |
Dr. |
|
4,50,000 |
|
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Calls–in–Arrears A/c |
Dr. |
|
3,500 |
|
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To Equity Share First Call A/c |
|
|
|
10,80,000 |
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(Call money received) |
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Equity Share Capital A/c |
Dr. |
|
20,000 |
|
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To Equity Share First Call A/c |
|
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|
3,500 |
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To Equity Share Forfeiture A/c |
|
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16,500 |
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(200 shares forfeited) |
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Bank A/c (200 × 105) |
Dr. |
|
21,000 |
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To Equity Share Capital A/c |
|
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|
20,000 |
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To Securities Premium A/c |
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|
1,000 |
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(Forfeited shares re–issued at ` 105 per
share) |
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Equity Share Forfeiture A/c |
Dr. |
|
16,500 |
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To Capital Reserve A/c |
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16,500 |
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(Profit on re–issue transferred) |
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Page No 8.120:
Question 63:
A
share of `
100 issued at a premium of ` 10 on
which ` 80 (including premium) was called and ` 60 (including premium) was paid, has been forfeited.
This share was afterwards reissued as fully paid-up for ` 70 . Give Journal entries
to record the above.
Answer:
|
Journal |
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Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
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Share
Capital A/c (
` 80 – 10 premium) |
Dr. |
|
70 |
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To Share Forfeiture ( ` 60 – 10 premium) |
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|
50 |
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To Calls-In-Arrears A/c |
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|
20 |
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(A
share of ` 100
on which ` 70
called excluding the amount of securities premium ` 10,
forfeited for non-payment of ` 20) |
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Bank
A/c |
Dr. |
|
70 |
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Share
Forfeiture A/c |
Dr. |
|
30 |
|
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To Share Capital A/c |
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|
100 |
|
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(A
share of ` 100
re-issued at ` 70
as fully paid-up) |
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Share
Forfeiture A/c |
Dr. |
|
20 |
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To Capital Reserve A/c |
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|
20 |
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(Balance
in Share Forfeiture after re-issue transferred to Capital Reserve) |
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Page No 8.120:
Question 64:
Pass
journal entries in the following cases:
M Ltd forfeited 200 Equity Shares of `10 each , issued at a premium of ` 5 per share , held by Ram for non-payment of the
final call of
` 3 per share . Of these
, 100 shares were reissued to Vishu at a discount
of
` 4 per share .
Answer:
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|
Journal |
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Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c |
Dr. |
|
20,000 |
|
|
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To Share Forfeiture A/c
(2,000 × ` 7) |
|
|
14,000 |
|
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To Calls-in-Arrears A/c |
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|
6,000 |
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(2,000
shares of ` 10
each forfeited for the non-payment of ` 3 per share) |
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Bank
A/c |
Dr. |
|
600 |
|
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Share
Forfeiture A/c (100 × ` 4) |
Dr. |
|
400 |
|
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|
To Equity Share Capital
A/c |
|
|
1,000 |
|
|
|
(100
shares of ` 10
each reissued at ` 6
per share as fully paid-up) |
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Share
Forfeiture A/c |
Dr. |
|
300 |
|
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To Capital Reserve A/c |
|
|
300 |
|
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|
(Balance
in Share Forfeiture of 100 re-issued shares transferred to Capital Reserve ) |
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Working Note-
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Share
Forfeiture of re-issued shares |
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Share
Forfeiture |
Cr. |
` 7 |
per
share |
|
Share
Forfeiture |
Dr. |
` 4 |
per
share |
|
Balance
in share forfeiture after re-issue |
Cr. |
3 |
per
share |
Capital
Reserve = Balance in Share Forfeiture after re-issue × No. of shares re-issued
= Re
3 × 100 shares
= ` 300
Page No 8.120:
Question 65:
VT
Ltd forfeited 200 shares of ` 10 each , issued at a premium of ` 5 per share , held by Mohan for non-payment of the
final call of
` 3 per share . 100 out of these shares were reissued to Narendra at a discount
of ` 4 per share . Journalise.
Answer:
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|
Books of VT Limited Journal |
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Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
||
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|
|
|
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|
Share
Capital A/c (200 × ` 10) |
Dr. |
|
2,000 |
|
|
|
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To Share Forfeiture A/c
(200 × ` 7) |
|
|
1,400 |
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To Calls-in-Arrears A/c |
|
|
600 |
||
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|
(200
shares of ` 10
each forfeited for non-payment of ` 3 each) |
|
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||
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||
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|
Bank
A/c |
Dr. |
|
600 |
|
|
|
|
Share
Forfeiture A/c (100 × ` 4) |
Dr. |
|
400 |
|
|
|
|
To Share Capital A/c |
|
|
1,000 |
||
|
|
(100
shares of ` 10
each re-issued at ` 6
per share fully paid-up) |
|
|
|
||
|
|
|
|
|
|
||
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|
Share
Forfeiture A/c |
Dr. |
|
300 |
|
|
|
|
To Capital Reserve A/c |
|
|
300 |
||
|
|
(Balance
in share forfeiture of 100 shares transferred to capital reserve) |
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Working Notes:
|
Share
Forfeiture of re-issued shares |
||
|
Share
Forfeiture Cr. |
` 7 |
per share |
|
Share
Forfeiture Dr. |
` 4 |
per share |
|
Balance
in Share Forfeiture after re-issue |
` 3 |
per share |
|
Capital Reserve |
=
Balance in Share Forfeiture after re-issue (per share) × No. of
shares re-issued |
|
|
=
Re 3 × 100 |
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|
= ` 300 |