Page No 8.122:
Question 76:
Alfa
Ltd. invited applications for issuing 75,000 equity shares of ` 10
each. The amount was payable as follows:
|
On application and allotment |
— |
` 4 per
share , |
|
On first Call |
— |
` 3
per share, |
|
On second and final Call |
— |
balance. |
Applications for 1,00,000 shares were received. Shares
were allotted to all the applicants on pro rata basis and excess money
received with applications was transferred towards sums due
on first call. Vibha who was allotted 750 shares failed to pay the first
call . Her shares were immediately forfeited
. Afterwards the second call was made. The amount due on second call was
also received except on 1,000 shares applied by Monika .
Her shares were also forfeited. All the forefited shares were reissued to Mohit
for `9,000
as fully paid-up.
Pass necessary journal entries in the Books of Alfa Ltd .
for the above transactions.
Answer:
|
In the books of Alfa Ltd. Journal Entry |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
Bank
A/c |
Dr. |
|
4,00,000 |
|
|
|
To Equity Share Application and Allotment A/c |
|
|
|
4,00,000 |
|
|
(Application
money received on 1,00,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Application and Allotment A/c |
Dr. |
|
4,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
3,00,000 |
|
|
To Equity Share First Call A/c |
|
|
|
1,00,000 |
|
|
(Application
money transferred to share capital account and excess money is adjusted in
first call account) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share First Call A/c |
Dr. |
|
2,25,000 |
|
|
|
To Equity Share Capital
A/c |
|
|
|
2,25,000 |
|
|
(Amount
due on first call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c (2,25,000 – 1,00,000 – 1,250) |
Dr. |
|
1,23,750 |
|
|
|
To Equity Share First Call A/c |
|
|
|
1,23,750 |
|
|
(Amount
received on first call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c |
Dr. |
|
5,250 |
|
|
|
To Equity Share Forfeiture A/c |
|
|
|
4,000 |
|
|
To Equity Share First Call A/c |
|
|
|
1,250 |
|
|
(Vibha’s
shares were forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Second and Final Call A/c |
Dr. |
|
2,22,750 |
|
|
|
To Equity Share Capital
A/c |
|
|
|
2,22,750 |
|
|
(Amount
due on second and final call after forfeiting Vibha’s shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c (2,22,750 – 2,250) |
Dr. |
|
2,20,500 |
|
|
|
To Equity Share Second and Final Call A/c |
|
|
|
2,20,500 |
|
|
(Amount
received on second and final call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c |
Dr. |
|
7,500 |
|
|
|
To Equity Share Forfeiture A/c |
|
|
|
5,250 |
|
|
To Equity Share Second and Final Call A/c |
|
|
|
2,250 |
|
|
(Monika’s
shares were forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
9,000 |
|
|
|
Equity
Share Forfeiture A/c |
Dr. |
|
6,000 |
|
|
|
To Equity Share Capital
A/c |
|
|
|
15,000 |
|
|
(Forfeited
shares were reissued for ` 9,000 as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Forfeiture A/c |
Dr. |
|
3,250 |
|
|
|
To Capital Reserve A/c |
|
|
|
3,250 |
|
|
(Excess
amount on forfeiture is transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of Amount not
received on First Call
Share
applied by vibha=1,00,000/75,000×750= 1,000 share
Amount
received on 1000 share@4 `. Each= `.
4,000
Amount
transferred to share capital A/c(750×4)=3,000
Excess
application and allotment money received=1000
Amount
due on first call @3 `. 2,250
Amount
not received on first call @3=1,250(2,250-1,000)
WN2: Calculation of Amount not
received on Second Call
Allotted share to Monika
=75,000×1000/1,00,000=750 shares
Amount not received on second
call=2,250(750×3)
Page No 8.122:
Question 77:
Himalaya
Company Limited issued for public subscription 1,20,000
equity shares of
` 10 each at a premium for ` 2 per share payable as under:
|
With Application |
— |
` 3 per
share, |
|
On allotment (including premium) |
— |
` 5 per share, |
|
On First call |
— |
` 2 per share |
|
On Second and Final call |
— |
` 2 per
share. |
Applications were received for 1,60,000 shares .
Allotment was made on pro rata basis . Excess
money on application were adjusted against the amount
due on allotment.
Rohan to whom 4,800 shares were allotted failed to pay for the two calls. These
shares were subsequently forfeited after the
second call was made . All the shares forfeited were reissued to Teena as fully
paid at `
7 per share.
Record journal entries and show the transactions relating to share capital in
the company's Balance Sheet.
Answer:
|
Books of
Himalaya Company Ltd. Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
Bank A/c |
Dr. |
|
4,80,000 |
|
|
|
To Share Application A/c |
|
|
4,80,000 |
|
|
|
(Share Application money received for 1,60,000 shares @ ` 3 per
share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
4,80,000 |
|
|
|
To Equity Share Capital A/c |
|
|
3,60,000 |
|
|
|
To Share Allotment A/c |
|
|
1,20,000 |
|
|
|
(Share Application for 1,20,000 shares @ ` 3 per
share transferred to Share Capital Account and remaining amount adjusted to
Allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
6,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
3,60,000 |
|
|
|
To Securities Premium |
|
|
2,40,000 |
|
|
|
(Share Allotment due on 1,20,000 shares @ ` 5 per
share including ` 2 Securities Premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
4,80,000 |
|
|
|
To Share Allotment A/c |
|
|
4,80,000 |
|
|
|
(Share allotment for 1,20,000 shares @ ` 5 per
share received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
2,40,000 |
|
|
|
To Equity Share Capital A/c |
|
|
2,40,000 |
|
|
|
(Share First Call due on 1,20,000 shares @ ` 2 per
share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,30,400 |
|
|
|
To Share First Call A/c |
|
|
2,30,400 |
|
|
|
(Share First Call received on 1,15,200 shares @ ` 2 per
share and 4,800 shares failed to pay) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Final Call A/c |
Dr. |
|
2,40,000 |
|
|
|
To Equity Share Capital A/c |
|
|
2,40,000 |
|
|
|
(Share Final call due on 1,20,000 shares @ ` 2 per
share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,30,400 |
|
|
|
To Share Final Call A/c |
|
|
2,30,400 |
|
|
|
(Share Final Call received on 1,15,200 shares @ ` 2 per
share and 4,800 shares failed to pay) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (4,800×10) |
Dr. |
|
48,000 |
|
|
|
To Share First Call A/c (4,800×2) |
|
|
|
9,600 |
|
|
To Share Final Call A/c (4,800×2) |
|
|
|
9,600 |
|
|
To Share Forfeiture A/c (4,800×6) |
|
|
|
28,800 |
|
|
(4,800 shares forfeited for the non–payment of First Call
and Final Call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
33,600 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
14,400 |
|
|
|
To Equity Share Capital |
|
|
|
48,000 |
|
|
(4,800 shares reissued @ ` 7 per share, fully paid–up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
14,400 |
|
|
|
To Capital Reserve A/c |
|
|
|
14,400 |
|
|
(Share forfeiture balance of 4,800 shares
transferred to Capital Reserve Account) |
|
|
|
|
|
|
|
|
|
|
|
|
Himalaya
Company Limited |
||
|
Balance
Sheet |
||
|
Particulars |
Note No. |
Amount ( `) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
12,00,000 |
|
b. Reserves and Surplus |
2 |
2,54,400 |
|
2. Non-Current Liabilities |
|
|
|
3. Current Liabilities |
|
|
|
Total |
|
14,54,400 |
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
3 |
14,54,400 |
|
Total |
|
14,54,400 |
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
Amount ( `) |
|
|
1 |
Share Capital |
|
|
|
|
Authorised Share Capital |
|
|
|
|
…….. shares of ` 10 each |
– |
|
|
|
Issued Share Capital |
|
|
|
|
1,20,000 shares of ` 10 each |
12,00,000 |
|
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
|
1,20,000 shares of ` 10 each |
12,00,000 |
|
|
|
|
|
|
|
2 |
Reserves and Surplus |
|
|
|
|
Securities Premium |
2,40,000 |
|
|
|
Capital Reserve |
14,400 |
2,54,400 |
|
|
|
|
|
|
3 |
Cash and Cash Equivalents |
|
|
|
|
Cash at Bank |
14,54,400 |
|
|
|
|
|
|
Page No 8.123:
Question 78:
Answer:
In the
books of Saregama Ltd.
|
|||||
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
|
|
|
|
|
|
|
Bank A/c (1,20,000×30) |
Dr. |
|
36,00,000 |
|
|
|
To Equity Share application A/c |
|
|
|
36,00,000 |
|
|
(Being share application money received) |
|
|
|
|
|
|
|||||
|
|
Equity Share application A/c |
Dr. |
|
36,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
24,00,000 |
|
To Equity Share
Allotment A/c (Being share application money transferred to share
capital and allotment) |
12,00,000 |
||||
|
|
|
|
|
|
|
|
|
|||||
|
|
Equity Share Allotment A/c (80,000 × 30) |
Dr. |
36,00,000 |
||
|
|
To Equity Share Capital A/c (80,000 × 20) |
|
|
|
16,00,000 |
|
To securities
premium reserve A/c (80,000 × 10) |
8,00,000 |
||||
|
|
(Allotment money due) |
|
|||
|
|
|
|
|||
|
|
Bank A/c |
Dr. |
11,76,000 |
||
|
Calls in arrears A/c |
Dr. |
24,000 |
|||
|
|
To Equity Share Allotment A/c |
|
12,00,000 |
||
|
|
(Allotment money received) |
|
|||
|
|
|
|
|||
|
|
Equity Share First Call A/c (80,000 × 3) |
Dr. |
24,00,000 |
||
|
|
To Equity Share Capital A/c |
|
24,00,000 |
||
|
|
(Call money due) |
|
|||
|
|
|
|
|||
|
|
Bank A/c (1,60,000 × 2) |
Dr. |
22,32,000 |
||
|
Calls in arrears A/c (1600×30) |
Dr. |
48,000 |
|||
|
Calls in arrears A/c (4000×30) |
Dr. |
1,20,000 |
|||
|
|
To Equity Share First Call A/c |
|
24,00,000 |
||
|
|
(Call money received) |
|
|||
|
|
|
|
|||
|
|
Equity Share Capital A/c |
Dr. |
1,28,000 |
||
|
Securities premium reserve a/c |
Dr. |
16,000 |
|||
|
|
To Calls in arrears
A/c (allotment) |
|
24,000 |
||
|
To Calls in arrears
A/c (1600×30) |
48,000 |
||||
|
To share forfeited
A/c (2400×30) |
72,000 |
||||
|
(Being shares of Dhanwani forfeited) |
|
||||
|
|
|
||||
|
Equity Share Capital A/c (400×95) |
Dr. |
38,000 |
|||
|
To Calls in arrears
A/c (400×80) |
32,000 |
||||
|
|
To share forfeited
A/c (400×15) |
6,000 |
|||
|
|
(Being shares of Dhanwani forfeited) |
|
|||
|
Share forfeiture A/c [72,000+(400×50)] |
Dr. |
92,000 |
|||
|
To Capital Reserve
A/c |
92,000 |
||||
|
(Being balance of forfeiture transferred to Capital
reserve) |
|||||
|
|
|||||
Page No 8.123:
Question 79:
Jeevan
Dhara Ltd. invited applications for issuing 1,20,000
equity shares of
` 10 each at a premium
of
` 2 per share. The amount was payable as
follows:
|
On application |
— |
` 2 per
share, |
|
On allotment |
— |
` 5 per
share (including premium) |
|
On first and final call |
— |
Balance. |
Applications for 1,50,000 shares were received .
Shares were allotted to all the applicants on pro rata basis. Excess
money received on applications was adjusted towards sums due on allotment . All calls were made. Manu who had applied for
3,000 shares failed to pay the amount due on
allotment and first and final call Madhur who was allotted 2,400 shares failed
to pay the first and final call . Shares of both Manu and Madhur were forfeited . The forfeited shares were reissued
at ` 9 per share as fully paid-up .
Pass necessary journal entries for the above transactions in the books of
Jeevan Dhara Ltd.
Answer:
|
In the books of Jeevan Dhara Ltd. Journal Entry |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
Bank
A/c |
Dr. |
|
3,00,000 |
|
|
|
To Equity Share Application A/c |
|
|
|
3,00,000 |
|
|
(Application
money received on 1,50,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Application A/c |
Dr. |
|
3,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
2,40,000 |
|
|
To Equity Share Allotment A/c |
|
|
|
60,000 |
|
|
(Amount
of application transferred to Share Capital and excess money is adjusted
towards allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Allotment A/c |
Dr. |
|
6,00,000 |
|
|
|
To Equity Share Capital
A/c |
|
|
|
3,60,000 |
|
|
To Securities Premium
A/c |
|
|
|
2,40,000 |
|
|
(Amount
due on allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
5,29,200 |
|
|
|
To Equity Share
Allotment A/c |
|
|
|
5,29,200 |
|
|
(Amount
received on share allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share First and Final Call A/c |
Dr. |
|
6,00,000 |
|
|
|
To Equity Share Capital
A/c |
|
|
|
6,00,000 |
|
|
(Amount
due on first and final call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
5,76,000 |
|
|
|
To Equity Share First and Final Call A/c |
|
|
|
5,76,000 |
|
|
(Amount
received on first and final call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c |
Dr. |
|
48,000 |
|
|
|
Securities
Premium A/c |
Dr. |
|
4,800 |
|
|
|
To Equity Share Forfeiture A/c |
|
|
|
18,000 |
|
|
To Equity Share
Allotment A/c |
|
|
|
10,800 |
|
|
To Equity Share First and Final Call A/c |
|
|
|
24,000 |
|
|
(Shares
of Manu and Madhur were forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
43,200 |
|
|
|
Equity
Share Forfeiture A/c |
Dr. |
|
4,800 |
|
|
|
To Equity Share Capital
A/c |
|
|
|
48,000 |
|
|
(Forfeited
shares were reissued for ` 9 as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Forfeiture A/c |
Dr. |
|
13,200 |
|
|
|
To Capital Reserve A/c |
|
|
|
13,200 |
|
|
(Excess
amount on forfeiture is transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of Amount not received on Allotment and
First and Final Call
Share
allotted to Monu = 1,20,000 / 1,50,000× 3,000 = `. 2,400
shares
Amount
Received on 3,000 shares of `. 2 each = `.
6,000
Amount
transfer to share capital account (2,400 x 2) = `.
4,800
Excess
money received on application = `. 1,200
Amount
not received on first and final call = `.
12,000 (2,400 x 5) 1,200
Amount
due on allotment at the rate of 5 rupees each = `.
12,000 (7,200 + 4,800)
Amount
not received on security premium reserve = `.
4,800
Amount
not received on allotment = `. 6,000 (7,200–1,200)
Amount
not received on first and final call = `.
12,000 (2,400 x 5)
WN2: Calculation of amount not received from Madhur
Amount
not received on first and final call= `. 12,000 (2,400 x 5)
Page No 8.123:
Question 80:
JJK Ltd. invited applications for issuing 50,000 equity shares
of ` 10
each at par. The amount was payable as follows:
|
On Application |
— |
` 2 per share, |
|
On Allotment |
— |
` 4 per
share; and |
|
On First and
Final call |
— |
Balance Amount. |
The
issue was oversubscribed three times. Applications for 30%
shares were rejected and money refunded .Allotment was made to the
remaining applicants as follows:
|
Category |
No . of Shares Applied |
No. of Shares Allotted |
|
I |
80,000 |
40,000 |
|
II |
25,000 |
10,000 |
Excess
money paid by the applicants who were allotted
shares was adjusted towards sums due on allotment .
Deepak, a shareholder belonging to Category I ,
who had applied for 1,000 shares ,failed to pay the allotment money. Raju, a
shareholder holding 100 shares, also failed to pay the allotment money. Raju
belonged to Category II. Shares of both Deepak and Raju were forfeited
immediately after allotment . Afterwards, first and
final call was made and was duly received . The
forfeited shares of Deepak and Raju were reissued at `11 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of
company.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ( `) |
Credit Amount ( `) |
|
|
|
Bank A/c (1,50,000 × 2) |
Dr. |
|
3,00,000 |
|
|
|
To Share Application A/c |
|
|
|
3,00,000 |
|
|
(Application money received on 1,50,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
3,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
1,00,000 |
|
|
To Share Allotment A/c |
|
|
|
1,10,000 |
|
|
To Bank A/c |
|
|
|
90,000 |
|
|
(Application money transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c (50,000 × 4) |
|
|
2,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
2,00,000 |
|
|
(Allotment money due on 50,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
88,900 |
|
|
|
To Share Allotment A/c (WN2) |
|
|
|
88,900 |
|
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c (600 × 6) |
Dr. |
|
3,600 |
|
|
|
To Share Allotment A/c (1,000 + 100) |
|
|
|
1,100 |
|
|
To Share Forfeiture A/c (2,000 + 500) |
|
|
|
2,500 |
|
|
(600 shares forfeited for non–payment of allotment money) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share First and Final Call A/c |
Dr. |
|
1,97,600 |
|
|
|
To Share Capital A/c |
|
|
|
1,97,600 |
|
|
(Call money due on 49,400 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,97,600 |
|
|
|
To Share First and Final Call A/c |
|
|
|
1,97,600 |
|
|
(Call money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (600 × 11) |
Dr. |
|
6,600 |
|
|
|
To Share Capital A/c |
|
|
|
6,000 |
|
|
To Security Premium Reserve A/c |
|
|
|
600 |
|
|
(600 shares re–issued at ` 11 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,500 |
|
|
|
To Capital Reserve A/c |
|
|
|
2,500 |
|
|
(Profit on re–issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1:Computation Table
|
Categories |
Shares Applied |
Shares
Allotted |
Money
received on Application @ ` 2
each |
Money
transferred to Share Capital @ ` 2 each |
Excess
Application Money |
Amount
adjusted on Allotment |
Money
refunded |
|
I |
80,000 |
40,000 |
1,60,000 |
80,000 |
80,000 |
80,000 |
– |
|
II |
25,000 |
10,000 |
50,000 |
20,000 |
30,000 |
30,000 |
– |
|
III |
45,000 |
– |
90,000 |
– |
– |
– |
90,000 |
|
|
1,50,000 |
50,000 |
3,00,000 |
1,00,000 |
1,10,000 |
1,10,000 |
90,000 |
|
|
|
|
|
|
|
|
|
WN2:Calculation
of Amount Received on Allotment
|
Amount Due on Allotment |
2,00,000 |
|
Less: Excess Received |
1,10,000 |
|
Balance to be Received |
90,000 |
|
Less: Amount not paid by Deepak |
(1,000) |
|
Less: Amount not paid by Raju |
(100) |
|
Amount received on Allotment |
88,900 |
WN3: Calculation of Shares
Applied/Allotted
Shares Allotted to Deepak=40,000/80,000×1,000=500
Shares Applied by Raju=25,000/10,000×100=250
|
Amount not paid by Deepak on Allotment |
|
|
Amount received on Application |
2,000 |
|
Less: Transferred to Share Capital |
(1,000) |
|
Excess received on Application |
1,000 |
|
Amount due on allotment |
2,000 |
|
Less: Excess adjustment |
(1,000) |
|
Amount unpaid by Deepak |
1,000 |
|
Amount not paid by Raju on Allotment |
|
|
Amount received on Application |
500 |
|
Less: Transferred to Share
Capital |
(200) |
|
Excess received on Application |
300 |
|
Amount due on allotment |
400 |
|
Less: Excess adjustment |
(300) |
|
Amount unpaid by Raju |
100 |