Question 93:
Sukanya Ltd. invited applications
for issuing 1,00,000 equity shares of ` 10 each. The shares were issued at a premium of
` 20 per share. The amount was payable as follows:
|
On Application and Allotment |
— |
` 14 per share (including premium of ` 10), |
|
On First Call |
— |
` 8 per share (including premium of ` 5), |
|
On Final Call |
— |
` 8 per share (including premium of ` 5). |
Applications for 96,000 shares were received. Rohit , a shareholder holding
7,000 shares, failed to pay both the calls and Namit , a holder of 5,000 shares , did not pay the final call.
Shares of Rohit and Namit were forfeited
. Of the forfeited shares 8,000 shares
including all the shares of Rohit
were reissued to Reena at `
8 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Sukanya Ltd. (CBSE 2016 C)
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Bank A/c (96,000×14) |
Dr. |
|
13,44,000 |
|
|
|
To Equity Share Application
and Allotment A/c |
|
|
|
13,44,000 |
|
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application and
Allotment A/c |
Dr. |
|
13,44,000 |
|
|
|
To Equity Share Capital A/c
(96,000×4) |
|
|
|
3,84,000 |
|
|
To Security Premium Reserve
A/c (96,000×10) |
|
|
|
9,60,000 |
|
|
(Application money adjusted to
Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c
(96,000×8) |
Dr. |
|
7,68,000 |
|
|
|
To Equity Share Capital A/c
(96,000×3) |
|
|
|
2,88,000 |
|
|
To Security Premium Reserve
A/c (96,000×5) |
|
|
|
4,80,000 |
|
|
(First call money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (7,68,000 – 56,000) |
Dr. |
|
7,12,000 |
|
|
|
To Equity Share First Call
A/c |
|
|
|
7,12,000 |
|
|
(First call money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Second Call A/c
(96,000×8) |
Dr. |
|
7,68,000 |
|
|
|
To Equity Share Capital A/c
(96,000×3) |
|
|
|
2,88,000 |
|
|
To Security
Premium Reserve A/c (96,000×5) |
|
|
|
4,80,000 |
|
|
(Second call money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (7,68,000 – 56,000 –
40,000) |
Dr. |
|
6,72,000 |
|
|
|
To Equity Share Second Call
A/c |
|
|
|
6,72,000 |
|
|
(Second call money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
1,20,000 |
|
|
|
Security Premium Reserve A/c (7,000×10 + 5,000×5) |
Dr. |
|
95,000 |
|
|
|
To
Equity Share First Call A/c |
|
|
|
56,000 |
|
|
To
Equity Share Second Call A/c |
|
|
|
96,000 |
|
|
To
Shares Forfeited A/c (7,000×4 + 5,000×7) |
|
|
|
63,000 |
|
|
(Shares Forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (8,000×8) |
Dr. |
|
64,000 |
|
|
|
Shares Forfeited A/c (8,000×2) |
Dr. |
|
16,000 |
|
|
|
To Equity Share
Capital A/c |
|
|
|
80,000 |
|
|
(Shares Reissued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Forfeited A/c |
Dr. |
|
19,000 |
|
|
|
To Capital
Reserve A/c |
|
|
|
19,000 |
|
|
(Prof it on Reissue transferred to
Capital Reserve A/c) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Amount transferred to
Capital Reserve
Amount forfeited on reissued shares of
Rohit = ` 28,000
Amount forfeited on reissued shares of
Namit=Amount Forfeited×Shares Re-issuedShares Forfeited
=35,000×1,0005,000=7,000
Total amount forfeited on reissued
shares = 28,000 + 7,000 = ` 35,000
Amount transferred to Capital
Reserve = 35,000 – 16,000 = ` 19,000
Question 94:
Abhipra
Ltd. invited applications for issuing 1,00,000 equity shares of `10 each. The
shares were issued at a premium of `20
per share. The amount was payable as follows:
On
Application `14 per share (including premium of `10),
On
Allotment `8 per share (including premium of `5)
On
First and Final Call `8 per share (including premium of `5).
Applications
for 90,000 shares were received. Paresh, a shareholder holding 5,000 shares,
did not pay the allotment money and call. While Dharam, holder of 3,000 shares, did not pay the call. Shares of Paresh and Dharam were forfeited. Of the forfeited shares, 5,000 shares including
3,000 shares of Paresh and 2,000 shares of
Dharam were reissued to Parul at 8 per
share as fully paid-up.
Pass
necessary Journal entries for the above transactions in the books of Abhipra Ltd.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Bank A/c (90,000×14) |
Dr. |
|
12,60,000 |
|
|
|
To Share Application A/c |
|
|
|
12,60,000 |
|
|
(Being share application money received) |
|
|
|
|
|
|
Share Application A/c (90,000×14) |
Dr. |
|
12,60,000 |
|
|
|
To Share Capital A/c (90,000×4) |
|
|
|
3,60,000 |
|
|
To Securities Premium Reserve A/c (90,000×10) |
|
|
|
9,00,000 |
|
|
(Being share application money
transferred to share capital and Securities Premium Reserve) |
|
|
|
|
|
|
Share allotment A/c (90,000×8) |
Dr. |
|
7,20,000 |
|
|
|
To Share Capital A/c (90,000×3) |
|
|
|
2,70,000 |
|
|
To Securities Premium Reserve A/c (90,000×5) |
|
|
|
4,50,000 |
|
|
(Being share allotment money
transferred to share capital and Securities Premium Reserve) |
|
|
|
|
|
|
Bank A/c (85,000×8) |
Dr. |
|
6,80,000 |
|
|
|
To Share Allotment A/c |
|
|
|
6,80,000 |
|
|
(Being share allotment money
received and except 5,000
shares) |
|
|
|
|
|
|
Share First and
Final Call A/c (90,000×8) |
Dr. |
|
7,20,000 |
|
|
|
To Share Capital A/c (90,000×3) |
|
|
|
2,70,000 |
|
|
To Securities Premium Reserve A/c (90,000×5) |
|
|
|
4,50,000 |
|
|
(Being share First and
Final Call money transferred to share capital
and Securities Premium Reserve) |
|
|
|
|
|
|
(Being first and final call due) |
|
|
|
|
|
|
Bank
A/c [(90,000-8,000) ×3] |
Dr. |
|
6,56,000 |
|
|
|
To Share First and Final A/c |
|
|
|
6,56,000 |
|
|
(Being
share First and Final money received except [5,000+3,000] 8,000 shares) |
|
|
|
|
|
|
Share Capital A/c (8,000×10) |
Dr. |
|
80,000 |
|
|
|
Securities Premium Reserve A/c |
Dr. |
|
65,000 |
|
|
|
(5,000×10+3,000×5) |
|
|
|
|
|
|
To Forfeited Shares A/c (4,000×7) |
|
|
|
41,000 |
|
|
To Share Allotment A/c |
|
|
|
40,000 |
|
|
To
Share First and Final A/c |
|
|
|
64,000 |
|
|
(Being share forfeited for allotment
and First and Final Calls of 5,000
shares and for First and Final Calls of
3,000 shares) |
|
|
|
|
|
|
Bank A/c (5,000×8) |
Dr. |
|
40,000 |
|
|
|
Forfeited Shares A/c (5,000×2) |
|
|
10,000 |
|
|
|
To Share Capital A/c (5,000×10) |
|
|
|
50,000 |
|
|
(Being 5,000 shares forfeited
reissued at `8 as fully paid-up) |
|
|
|
|
|
|
Forfeited Shares A/c |
Dr. |
|
16,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
16,000 |
|
|
(Being full amount Forfeited on
2,000 Shares reissued, transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Working
notes:
Forfeited amount of
Paresh 3,000 shares 20,000÷5,000×3,000= 12,000
Forfeited amount of
Parul 2,000 shares 21,000÷3,000×2,000= 14,000
Total
Forfeited amount = 12,000+14,000=26,000
Amount
to be transferred to capital reserve = Total Forfeited amount – Discount on
reissue
16,000=
26,000-10,000
Determination
of Amount Realised from Reissue of Shares
Question
95:
"Ratan Ltd.' forfeited 1,000 shares of 10 each for non-payment of first and final call of ? 2 per share. These
shares were reissued and gain on reissue transferred to Capital Reserve was
5,000. Determine the amount realised from reissue of shares. [Ans.: Amount realised from reissue of
shares* 7,000.]
Answer:
Amount
forfeited on 1,000 shares par shares is `8 = `8,000
Amount
transferred to capital reserve = `5,000
Face value
of all reissued shares = `10,000
(1,000×`10)
Amount of discount = `8,000 - `5,000 = `3,000
Therefore,
amount realized from reissue of shares = `10,000 - `3,000 = `7,000
Reissue price par share = `7,000 ÷
1,000 = `7
Question
96:
"Swasth Ltd.'forfeited 2,000 shares of 10 each for non-payment of final call of 3 per share. 1,500 of these shares were reissued and gain on reissue
transferred to Capital Reserve was? 7,500. Determine the amount realised from
reissue of shares.
Answer:
Amount
forfeited on 2,000 shares par shares is `7 = `14,000
Amount
transferred to capital reserve of 1500
shares = 14,000×1,500÷2,000 =`10,500
Face value
of all reissued shares = `10,000
(2,000×`10)
Total Amount of discount = `10,500 - `7,500 = `3,000
Discount
per share= `3,000÷1,500=
`2
Therefore, amount realized from reissue of
shares = `15,000
- `3,000 = `12,000
Reissue
price par share = `12,000 ÷ 1,000 = `12
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