Question 25:
Sugandh Ltd. issued 60,000 shares of ₹10 each at a premium of ₹2 per share payable as ₹3 on application, ₹5 (including premium) on allotment and the balance on first and final call. Applications were received for 92,000 shares. The Directors resolved to allot as:
|
(i) |
Applicants of 40,000 shares |
30,000 shares, |
|
(ii) |
Applicants of 50,000 shares |
30,000 shares, |
|
(iii) |
Applicants of 2,000 shares |
Nil. |
Mohan, who had applied for 800 shares in Category (i) and Sohan, who was allotted 600 shares in Category (ii) failed to pay the allotment money. Calculate amount received on allotment.
Answer:
|
Issued Shares |
60,000 |
|
Less: Applied Shares |
92,000 |
|
Over-subscribed Shares |
32,000 |
Payable as:
|
₹ |
3 |
on Application |
|
||||
|
₹ |
5 |
on Allotment (Including ₹2 premium) |
|
||||
|
₹ |
4 |
on First and Final Call |
|
||||
|
₹ |
12 |
(10 + 2) |
|
||||
|
|
|
|
|
|
|
|
|
|
Applied |
Allotted |
Money Received on Application @ ₹3 |
Money adjusted on Application @ ₹3 |
Excess |
Allotment due @ ₹5 |
Excess money adjusted on Allotment @ ₹5 |
|
|
40,000 |
30,000 |
1,20,000 |
90,000 |
30,000 |
1,50,000 |
30,000 |
|
|
50,000 |
30,000 |
1,50,000 |
90,000 |
60,000 |
1,50,000 |
60,000 |
|
|
2,000 |
NIL |
6,000 |
– |
6,000 |
|
|
|
|
|
|
|
|
(Bank) |
|
|
|
|
92,000 |
60,000 |
2,76,000 |
1,80,000 |
|
3,00,000 |
90,000 |
|
|
|
|||||||
Calls-in-Arrears by Mohan
Number of shares allotted to Mohan=30,000/40,000×800= 600 shares
|
Money Received on Application 800×3 |
= |
2,400 |
|
Application money adjusted to Share Capital 600×3 |
= |
1,800 |
|
Execs Money on Application |
= |
600 |
|
|
|
|
|
Allotment due on 600 shares × ₹5 |
= |
3,000 |
|
Less: Adjustment of excess money on application |
= |
600 |
|
Calls-in-Arrears by Mohan |
= |
2,400 |
Calls-in-Arrears by Sohan
Number of shares allotted to Sohan=50,000/30,000×600= 1000 shares
|
Money received on Application 1,000×3 |
= |
3,000 |
|
Application money adjusted to Share Capital 600×3 |
= |
1,800 |
|
Excess money on application |
= |
1,200 |
|
|
|
|
|
Allotment due on 600 Shares × ₹5 |
= |
3,000 |
|
Less: Adjustment of excess money on application |
= |
1,200 |
|
Calls-in-Arrears by Sohan |
= |
1,800 |
|
Money received on allotment |
|
|
|
Allotment due on 60,000 shares × ₹5 |
= |
3,00,000 |
|
Less: Excess Application money adjusted on Allotment |
= |
90,000 |
|
|
|
2,10,000 |
|
Less: Calls-in-Arrears by Mohan |
= |
2,400 |
|
Less: Calls-in-Arrears by Sohan |
= |
1,800 |
|
Money received on allotment |
= |
2,05,800 |
Question 26:
Printkit Limited invited applications for issue of 80,000 equity shares of ₹10 each. The amount was payable as follows:
On Application ₹3 per share
On Allotment ₹2 per share
On First and Final call Balance
Applications for 1,50,000 shares were received. Applications for 10,000 shares were rejected and pro rata allotment was made to the remaining applicants on the following basis:
Category A- Applicants for 80,000 shares were allotted 40,000 shares.
Category B- Applicants for 60,000 shares were allotted 40,000 shares.
Excess money received on application was adjusted towards amount due on allotment and first and final call. All the amounts due on allotment and first and final call were duly received.
Pass necessary Journal entries in the books of Printkit Limited.
(CBSE 2024)
Answer:
|
Books of Tiny Printkit Limited Journal |
|
|||||
|
Date |
Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
|
|
|
|
Bank A/c |
Dr. |
|
4,50,000 |
|
|
|
|
To Share Application A/c |
|
|
4,50,000 |
|
|
|
|
(Share application money received for 1,50,000 shares at ₹3 each) |
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
4,50,000 |
|
|
|
|
To Share Capital A/c |
|
|
2,40,000 |
|
|
|
|
To Share Allotment A/c |
|
|
1,40,000 |
|
|
|
To Share First and Final Call A/c |
40,000 |
|
||||
|
|
To Bank A/c |
|
|
30,000 |
|
|
|
|
(Share application of 80,000 shares transferred to Share Capital out of share applied 1,50,000 shares, and excess application money adjusted on allotment, First and Final Call and remaining amount returned) |
|
|
|
|
|
|
|
Share Allotment A/c Dr. |
1,60,000 |
|
|||
|
|
To Share Capital A/c |
|
|
1,60,000 |
|
|
|
|
(Share allotment due on 80,000 shares at ₹2 each) |
|
||||
|
|
Bank A/c Dr. |
20,000 |
|
|||
|
|
To Share Allotment A/c |
|
|
20,000 |
|
|
|
|
(Share allotment money received) |
|
|
|
|
|
|
|
Share First and Final Call A/c |
Dr. |
|
4,00,000 |
|
|
|
|
To Share Capital A/c |
|
4,00,000 |
|
||
|
|
(First and final call due on 80,000 shares at ₹5 each) |
|
|
|||
|
|
Bank A/c |
Dr. |
|
3,60,000 |
|
|
|
|
To Share First and Final Call A/c |
|
3,60,000 |
|
||
|
|
(Share first and final call money received) |
|
|
|
|
|
Working Notes:
|
Applied Shares |
Allotted Shares |
Money received on Application @ ₹3 each |
Money transferred to Share Capital @ ₹3 each |
Excess |
Excess money adjusted on Allotment |
Excess money adjusted on First and Final Call |
Excess money after Allotment |
|
80,000 |
40,000 |
2,40,000 (80,000×3) |
1,20,000 (40,000×3) |
1,20,000 (40,000×3) |
80,000 (40,000×2) |
40,000 |
- |
|
60,000 |
40,000 |
1,80,000 (60,000×3) |
1,20,000 (40,000×3) |
60,000 (20,000×3) |
60,000 (40,000×2) |
- |
- |
|
10,000 |
Nil |
30,000 (10,000×3) |
Nil |
30,000 |
- |
- |
30,000 |
|
1,50,000 |
80,000 |
4,50,000 (1,50,000×3) |
2,40,000 (80,000×3) |
1,40,000 |
40,000 |
30,000 |
Question 27:
Eastern Company Limited, having an authorised capital of ₹10,00,000 divided into shares of ₹10 each ,issued 50,000 shares at a premium of ₹3 per share payable as follows:
|
On Application |
₹ 3 per share; |
|
On Allotment (including premium) |
₹ 5 per share; |
|
On first call (due three months after allotment) and the balance as when required. |
₹ 3 per share; |
Applications
were received for 60,000 shares and the directors allotted the shares as follows:
(i) Applicants for 40,000 shares received in full.
(ii) Applicants for 15,000 shares received an allotment of 8,000 shares.
(iii) Applicants for 5,000 shares received 2,000 shares on allotment, excess
money being returned.
All amounts due on allotment were received.
The first call was made and the money was received except on 100 shares.
Give journal and cash book entries to record these transactions of the company.
Also prepare the Balance Sheet of the company.
(NCERT, Modified)
Answer:
|
Books of Eastern Company Limited |
|||||
|
Date |
Particulars |
L.F. |
Debit ( ₹) |
Credit ( ₹) |
|
|
|
Bank A/c To Share Application a/c (share application money received) |
Dr. |
|
1,80,000 |
1,80,000 |
|
|
Share Application A/c |
Dr. |
|
1,80,000 |
|
|
|
To Share Capital A/c |
|
|
1,50,000 |
|
|
|
To Share Allotment A/c To Bank A/c |
|
|
27,000 3,000 |
|
|
|
(Share Application money for 50,000 shares transferred To Share Capital Account and the excess money transferred To Share Allotment Account) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
2,50,000 |
|
|
|
To Share Capital A/c |
|
|
1,00,000 |
|
|
|
To Share Premium A/c |
|
|
1,50,000 |
|
|
|
(Allotment money due on 50,000 shares @ ₹5 per share including ₹3 security premium) |
|
|
|
|
|
|
Bank A/c (2,50,000-27,000) Dr. To Share Allotment A/c (Share allotment money received) |
|
2,23,000 |
2,23,000 |
|
|
|
Share First Call A/c |
Dr. |
|
1,50,000 |
|
|
|
To Share Capital A/c |
|
|
|
1,50,000 |
|
|
(First call due on 50,000 shares @ ₹3 per share) |
|
|
|
|
|
|
Bank A/c (1,50,000-[100×3]) To Share First Call A/c (Amount received on first call except 100 shares) |
Dr. |
|
1,49,700 |
1,49,700 |
|
Cash Book (Bank Column) |
|||||||
|
Dr. |
|
|
|
|
|
|
Cr. |
|
Date |
Particulars |
J.F. |
( ₹) |
Date |
Particulars |
J.F. |
( ₹) |
|
|
Share Application |
|
1,80,000 |
|
Share Application |
|
3,000 |
|
|
Share Allotment |
|
2,23,000 |
|
Balance c/d |
|
5,49,700 |
|
|
Share First Call |
|
1,49,700 |
|
|
|
|
|
|
|
|
5,49,700 |
|
|
|
5,49,700 |
|
|
|
|
|
|
|
|
|
|
Eastern Company Limited |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
( ₹) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
3,99,700 |
|
b. Reserves and Surplus |
2 |
1,50,000 |
|
2. Non–Current Liabilities |
|
|
|
3. Current Liabilities |
|
|
|
Total |
|
5,49,700 |
|
II. Assets |
|
|
|
1. Non–Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
3 |
5,49,700 |
|
Total |
|
5,49,700 |
|
|
|
|
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
( ₹) |
|
|
1 |
Share Capital |
|
|
|
|
Authorised Share Capital |
|
|
|
|
1,00,000 shares of ₹ 10 each |
10,00,000 |
|
|
|
Issued Share Capital |
|
|
|
|
50,000 shares of ₹ 10 each |
5,00,000 |
|
|
|
Subscribed, Called up and Paid up Share Capital |
|
|
|
|
50,000 shares of ₹ 10 each, ₹ 8 called–up |
4,00,000 |
|
|
|
Less: Calls–in–Arrears |
(300) |
3,99,700 |
|
2 |
Reserves and Surplus |
|
|
|
|
Securities Premium |
1,50,000 |
|
|
|
|
|
|
|
3 |
Cash and Cash Equivalents |
|
|
|
|
Cash at Bank |
5,49,700 |
|
Table Adjusting Application money
|
Shares allotted |
Shares applied |
Application money receive |
Share Capital |
Share Allotment |
Refund |
|
40,000 |
40,000 |
1,20,000 |
1,20,000 |
- |
- |
|
15,000 |
8,000 |
45,000 |
24,000 |
21,000 |
- |
|
5,000 |
2,000 |
15,000 |
6,000 |
6,000 |
3,000 |
|
60,000 |
50,000 |
1,80,000 |
1,50,000 |
27,000 |
3,000 |
Question 28:
A-one Product Ltd. is registered with authorised capital of ₹10,00,000 divided into 50,000 equity shares of ₹20 each. It issued 25,000 Equity Shares for subscription at premium of ₹2 per share, issue price being payable along with application. It received ₹5,17,000 towards application money.
You are required to prepare the Balance Sheet showing Share Capital.
Answer:
|
Balance Sheet of A-One Product Ltd. |
||
|
Particulars |
Note No. |
(₹) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
Share Capital |
1 |
4,70,000 |
|
Reserve and Surplus |
2 |
47,000 |
|
Total |
|
5,17,000 |
|
|
|
|
|
Notes to Accounts |
|
|
|
Particulars |
(₹) |
|
|
1. Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
50,000 Equity Shares of ₹20 each |
10,00,000 |
|
|
|
|
|
|
|
10,00,000 |
|
|
Issued Share Capital |
|
|
|
25,000 Equity Shares of ₹20 each |
5,00,000 |
|
|
|
5,00,000 |
|
|
Subscribed Share Capital |
|
|
|
Subscribed and Fully Paid-up Share Capital |
|
|
|
23,500 Equity Shares of 20 each |
4,70,000 |
|
|
|
4,70,000 |
|
|
2. Reserve and Surplus |
|
|
|
Securities Premium Reserve (23,500×2) |
47,000 |
|
|
|
47,000 |
|
|
|
|
|
Working Notes:
Issue Price 20+2=₹22
Application Money Received =5,17,000
Hence, no. of shares issued = 5,17,000÷22=23,500
Ts Grewal Solution 2026-2027
Click below for more Questions
Class 12 / Volume – 2
Chapter 1- Company Accounts- Accounting for Share Capital
Question No. 1 To 4
Question No. 5 To 8
Question No. 9 To 12
Question No. 13 To 16
Question No. 17 To 20
Question No. 21 To 24
Question No. 25 To 28
Question No. 29 To 32
Question No. 33 To 36
Question No. 37 To 40
Question No. 41 To 44
Question No. 45 To 48
Question No. 49 To 52
Question No. 53 To 56
Question No. 57 To 60
Question No. 61 To 64
Question No. 65 To 68
Question No. 69 To 72
Question No. 73 To 76
Question No. 77 To 80
Question No. 81 To 84
Question No. 85 To 88
Question No. 89 To 92
Question No. 93 To 96
Question No. 97 To 100
Question No. 101 To 104
Question No. 105 To 108
Question No. 109 To 112
Question No. 113 To 115