Question
49: Sangita
Limited invited applications for issuing 60,000 shares of `10
each at par. The amount was payableas follows: on
application `2 per share; on
allotment`3 per share; on first
and final call `5 per share.Applications were received for 92,000 shares.
Allotment was made on the following basis: (a) to
applicants for 40,000 shares: full; (b) to applicants for 50,000 shares: 40%; (c)
to applicants for 2,000 shares: nil.
`1,08,000
was realised on account of allotment (excluding the amount carried from
application money)and `2,50,000 on account of call. The directors decided to forfeit shares of those applicants
to whom fullallotment was made and on which allotment
money was overdue.Pass Journal entries in the books of
Sangita
Limited to record the above transactions.
(CBSE Sample Paper 2013)
Answer:
|
Books
of Sangita
Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
|
|
|
|
|
|
|
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
Question 50:
Alpha Ltd. issued 20,000 Equity
Shares of ` 10 each at par payable: On application `2 per share; on allotment `
3 per share; on first call `
3 per share; on second and final call `2 per share.Mr. Gupta was allotted
100 shares. Pass necessary Journal entry relating to the forfeiture of shares in each of the following alternative cases:
|
Case I: |
If Mr. Gupta failed to pay the
allotment money and his shares were immediately forfeited. |
|
Case II: |
If Mr. Gupta failed to pay
allotment money and on his subsequent failure to pay the first call, his
shares were forfeited. |
|
Case III: |
If Mr. Gupta failed to pay the
first call and on his subsequent failure to pay the second and final call,
his shares were forfeited. |
Answer:
|
Application |
` |
2 |
|
|||||
|
Allotment |
` |
3 |
|
|||||
|
First Call |
` |
3 |
|
|||||
|
Final Call |
` |
2 |
|
|||||
|
|
|
10 |
|
|||||
|
Books
of Alpha Limited |
||||||||
|
Date |
Particulars |
L.F. |
Debit
(`) |
Credit (`) |
||||
|
|
|
|
|
|
||||
|
Case
I |
Share Capital A/c (100×5) |
Dr. |
|
500 |
|
|||
|
|
To Share Forfeiture A/c |
|
|
200 |
||||
|
|
To Share Allotment A/c |
|
|
300 |
||||
|
|
(100 shares of `
10 each, ` 5 called-up, forfeited for the non-payment of allotment) |
|
|
|
||||
|
|
|
|
|
|
||||
|
Case
II |
Share Capital A/c (100 × 8) |
Dr. |
|
800 |
|
|||
|
|
To Share Forfeiture A/c |
|
|
200 |
||||
|
|
To Share Allotment A/c |
|
|
300 |
||||
|
|
To Share First Call
A/c |
|
|
300 |
||||
|
|
(100 shares of `
10 each, ` 8 called-up forfeited for non-payment allotment and
first-call) |
|
|
|
||||
|
|
|
|
|
|
||||
|
Case
III |
Share Capital A/c |
Dr. |
|
1,000 |
|
|||
|
|
To Share Forfeiture A/c |
|
|
500 |
||||
|
|
To Share First Call A/c |
|
|
300 |
||||
|
|
To Share Final Call
A/c |
|
|
200 |
||||
|
|
(100 shares of `
10 each forfeited for the non-payment `
5 each) |
|
|
|
||||
|
|
|
|
|
|
||||
Forfeiture
of Shares which
were Issued at Premium
Question 51:
Ratan Ltd. forfeited 3,000 shares of `10
each (issued at `2 premium) for non-payment of first call of `2 per share. Final call of `3 per
share was not yet made. Out of these, 2,000 shares we`10 per
share as fully paid. Pass entries for forfeiture and reissue of
shares. (CBSE Sample Paper 2023)
Answer:
|
Books
of Ratan Ltd. Journal |
|
|||||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|||
|
|
Share capital A/c (3,000×7) |
Dr. |
|
21,000 |
|
|
||
|
|
To Share forfeited A/c
(3,000×5) |
|
|
15,000 |
|
|||
|
|
To Share first
call A/c (3,000×2) |
|
|
6,000 |
|
|||
|
|
(Being share forfeited for non-payment) |
|
|
|
|
|||
|
|
Bank A/c (2,000×10) |
Dr. |
|
20,000 |
|
|
||
|
|
To Share capital A/c |
|
|
20,000 |
|
|||
|
|
(Being 2,000 shares reissued) |
|
|
|
|
|||
|
|
Share forfeited A/c |
Dr. |
|
10,000 |
|
|
||
|
|
To Capital Reserve A/c |
|
|
10,000 |
|
|||
|
|
(Being balance in Share forfeited
account of reissued share transferred) |
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Working notes:
Amount paid-up 18,000
Amount to be transferred to capital reserve = 18,000÷5000×3,000
Question 52:
Ajanta
Ltd. issued a prospectus inviting applications for issuing 5,00,000
equity shares of `10
each issued at a premium of 10%. The
amount was payable as follows:
On
Application -`3 per share
On
Allotment (including premium) - `5 per share
On
First and Final Call - `3 per share
Applications were received for 6,00,000
shares and pro rata allotment was made to all applicants. Excess money received
on application was adjusted towards sums due on allotment. All amounts were
duly received except from Sumit, who was the holder of 1,000 shares, and
failed to pay the allotment and first and final call. His shares were
forfeited.
Pass Journal entries for the above transactions in
the books of Ajanta
Ltd. Open Calls-in-Arrears Account wherever necessary. (CBSE 2023)
Answer:
Issued and Subscribed Capital 5,00,000 shares of `10
each at `1 Premium
Payable as:
|
` |
3 |
On application |
|
` |
5 |
On allotment (including 5 Premium) |
|
` |
3 |
On first call |
|
|
11 |
|
|
Books
of Ajanta Ltd. Journal |
|
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (6,00,000×3) |
Dr. |
|
18,00,000 |
|
|
|
|
To Share Application A/c |
|
|
18,00,000 |
|
|
|
|
(Share application money received
for 6,00,000 shares at` 3 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c (6,00,000×6) |
Dr. |
|
18,00,000 |
|
|
|
|
To Share Capital A/c (5,00,000×3) |
|
|
15,00,000 |
|
|
|
|
To Share Allotment A/c |
|
|
3,00,000 |
|
|
|
|
(Share application Money
transferred to Share Capital and excess application money transferred To Share
Allotment Account) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c (5,00,000×5) |
Dr. |
|
25,00,000 |
|
|
|
|
To Share Capital A/c
(5,00,000×4) |
|
|
20,00,000 |
|
|
|
|
To Securities Premium Reserves A/c (5,00,000×1) |
|
|
5,00,000 |
|
|
|
|
(Share allotment due on 5,00,000
shares at` 4 with premium of `1 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
21,95,000 |
|
|
|
|
Calls-in-Arrears
A/c (1,000×5) Dr. |
|
5,000 |
|
|
|
|
|
To Share Allotment A/c |
|
|
22,00,000 |
|
|
|
|
(Share allotment money received
except 1,000 shares) |
|
|
|
|
|
|
|
Share First Call A/c (5,00,000×3) |
Dr. |
|
15,00,000 |
|
|
|
|
To Share Capital A/c |
|
|
15,00,000 |
|
|
|
|
(Share first call due on 5,00,000
shares at`3 per share) |
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
14,97,000 |
|
|
|
|
Calls-in-Arrears
A/c (1,000×3) Dr. |
|
3,000 |
|
|
|
|
|
To Share First and Final call A/c |
|
|
15,00,000 |
|
|
|
|
(Share first call received on
10,000 shares at`3per share except 1,000 shares) |
|
|
|
|
|
|
|
Share Capital A/c (1,000×10) |
Dr. |
|
10,000 |
|
|
|
|
Securities Premium Reserves A/c (1,000×1) |
|
1,000 |
|
|
|
|
|
To Share Forfeited A/c (1,000×3) |
|
|
3,600 |
|
|
|
|
To Calls-in-Arrears A/c (1,000×8) |
|
|
7,400 |
|
|
|
|
(Being shares forfeited due
non-payment of allotment and first
call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
\Working
note:
Sumit applied
for 1,000×6,00,000÷5,00,000=1,200 shares
Payment
received from Sumit on application
= 1,200×3=3,600
Ts Grewal Solution 2024-2025
Click below for more Questions
Class 12 / Volume – II