Question
29:
Home Products Ltd. is registered with authorised
capital of `10,00,000 divided into
1,00,000 equity shares of `10 each. It issued
70,000 Equity Shares for subscription at premium of `2 per share, payable `3 on application, `5 on allotment and
balance on first and final call. It received subscription for 62,500 shares.
You are required to pass the necessary Journal
entries.
Answer:
|
Books
of Home Product Ltd. Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
|
|
|
|
|
|
|
Bank A/c (62,500×3) |
Dr. |
|
1,87,500 |
|
|
|
To Share Application A/c |
|
|
1,87,500 |
|
|
|
(Share application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
1,87,500 |
|
|
|
To Bank A/c |
|
|
1,87,500 |
|
|
|
(Share application money refunded
due to less than minimum subscription) |
|
|
|
|
|
|
|
|
|
|
|
Working
Notes:
Issue subscribed 62,500 by public is less than
minimum subscription, which 90%
Therefore, it should be minimum 63,000 shares.
Application money will be refunded.
Question
30:
Pure Products Ltd. is registered with authorised
capital of `10,00,000 divided into
1,00,000 equity shares of `10 each. It issued
70,000 Equity Shares for subscription at premium of `2 per share, payable `3 on application, `5 on allotment and
balance on first and final call. It received application money amounting to `1,89,000.
You are required to:
(i) Determine whether the company should allot
shares; and
(ii) If yes, pass the necessary Journal entries assuming that the company has received due amount on allotment and call.
Answer:
1.
Yes, Company can allot share, since minimum 90%
subscription has been received that is 63,000 of 70,000 shares issued,
2.
|
Books
of Pure Product Ltd. Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
|
|
|
|
|
|
|
Bank A/c (63,000×3) |
Dr. |
|
1,89,000 |
|
|
|
To Share Application A/c |
|
|
1,89,000 |
|
|
|
(Share application money received
for 63,000 shares at` 3 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
1,89,000 |
|
|
|
To Share Capital A/c |
|
|
1,89,000 |
|
|
|
(Share application Money
transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c (63,000×5) |
Dr. |
|
3,15,000 |
|
|
|
To Share Capital A/c
(63,000×3) |
|
|
1,89,000 |
|
|
|
To Securities Premium Reserves A/c (63,000×2) |
|
|
1,26,000 |
|
|
|
(Share allotment due on 63,000
shares at` 3 with premium of `2 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
3,15,000 |
|
|
|
To Share Allotment A/c |
|
|
3,00000 |
|
|
|
(Share allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c (63,000×5) |
Dr. |
|
3,15,000 |
|
|
|
To Share Capital A/c |
|
|
3,15,000 |
|
|
|
(Share first call due on 63,000
shares at`5 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (63,000×5) |
Dr. |
|
3,15,000 |
|
|
|
To Share First and Final call A/c |
|
|
3,15,000 |
|
|
|
(Share first call received on
63,000 shares at`5 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Question
31:
Blue
chip Ltd. was registered on 1st January, 2024 with a capital of `10,00,000
divided into 1,00,000 shares of ` 10 each . The company
issued 42,000 shares of which 40,000
shares were taken up by the public and ` 1 per share was received
with application. On 1st February , these shares were allotted and ` 2
per share was duly received on 28th February as allotment money. A first call of
` 3 per share was made on 1st March and the
call money on all shares with the exception of 100 shares was received . The final call of ` 4
per share was made on 1st June and the amount due, with the exception of 400 shares , was received by 30th June. Pass
necessary journal and Cash Book entries and prepare the Balance Sheet as at
30th June, 2024.
Answer:
Authorised
Capital 1,00,000 shares of ` 10
each
Issued
Capital 42,000 shares of ` 10
each
Applied
40,000 shares
Payable
as:
` 1 on application
` 2 on allotment
` 3 on first call
` 4 on final call
|
Books of Blue chip Ltd. Cash Book |
|||||||||
|
Dr. |
|
Cr. |
|||||||
|
Date |
Particulars |
L.F. |
Bank ` |
Date |
Particulars |
L.F. |
Bank ` |
||
|
2024 |
|
|
|
2024 |
|
|
|
||
|
Feb
01 |
Share
Application |
|
40,000 |
June
30 |
|
|
|
||
|
Feb
28 |
Share
Allotment |
|
80,000 |
|
|
|
|
||
|
May
01 |
Share
First Call |
|
1,19,700 |
|
|
|
|
||
|
June
30 |
Share
Final Call |
|
1,58,400 |
|
Balance
c/d |
|
3,98,100 |
||
|
|
|
|
3,98,100 |
|
|
|
3,98,100 |
||
|
|
|
|
|
|
|
|
|
||
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
2024 |
|
|
|
|
|
|
Feb 01 |
Share
Application A/c |
Dr. |
|
40,000 |
|
|
|
To Share Capital A/c |
|
|
40,000 |
|
|
|
(Share
application of 40,000 shares at Re 1
each transferred to Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
|
Feb 01 |
Share
Allotment A/c |
Dr. |
|
80,000 |
|
|
|
To Share Capital A/c |
|
|
80,000 |
|
|
|
(Share
allotment due on 40,000 shares at ` 2 each) |
|
|
|
|
|
|
|
|
|
|
|
|
Mar 01 |
Share
First Call A/c |
Dr. |
|
1,20,000 |
|
|
|
To Share Capital A/c |
|
|
1,20,000 |
|
|
|
(Share
first call due on 40,000 shares at ` 3 each) |
|
|
|
|
|
|
|
|
|
|
|
|
May 30 |
Calls-in-Arrears
A/c |
Dr. |
|
300 |
|
|
|
To Share First Call A/c |
|
|
300 |
|
|
|
(Share
first call outstanding on 100 shares at ` 3 each) |
|
|
|
|
|
|
|
|
|
|
|
|
June 01 |
Share
Final Call A/c |
Dr. |
|
1,60,000 |
|
|
|
To Share Capital A/c |
|
|
1,60,000 |
|
|
|
(Share
final call due on 40,000 shares of `
4 each) |
|
|
|
|
|
|
|
|
|
|
|
|
June 30 |
Calls-in-Arrears
A/c |
Dr. |
|
1,600 |
|
|
|
To Share Final Call A/c |
|
|
1,600 |
|
|
|
(Share
final call outstanding on 400 shares at ` 4 each) |
|
|
|
|
|
|
|
|
|
|
|
As
per the Schedule III of Companies Act,
2013, the Company's Balance Sheet is presented as follows.
|
Blue
chpi Ltd. |
||
|
Balance
Sheet |
||
|
Particulars |
Note
No. |
(`) |
|
I. Equity and Liabilities |
|
|
|
1.
Shareholders’ Funds |
|
|
|
a.
Share Capital |
1 |
3,98,100 |
|
2.
Non-Current Liabilities |
|
|
|
3.
Current Liabilities |
|
|
|
Total |
|
3,98,100 |
|
|
|
|
|
II. Assets |
|
|
|
1.
Non-Current Assets |
|
|
|
2.
Current Assets |
|
|
|
a.
Cash and Cash Equivalents |
2 |
3,98,100 |
|
Total |
|
3,98,100 |
|
|
|
|
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 |
|
|
|
|
42,000
shares of `
10 each |
4,20,000 |
|
|
|
Subscribed,
Called-up and Paid-up Share Capital |
|
|
|
|
40,000
shares of `
10 each |
4,00,000 |
|
|
|
Less: Calls-in-Arrears |
(1,900) |
3,98,100 |
|
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
|
Cash
at Bank |
3,98,100 |
|
|
|
|
|
|
Question 32The authorised capital of Sarang Ltd. is `1,20,00,000
divided into 12,00,000 shares of 10
each. Out of these, company issued 8,00,000 shares of `10 each at a premium of
20%. The amount per share was payable as
follows:
On
Application `2
On
Allotment `6 (including premium)
On
First Call `2
On
Final Call Balance
Public
applied for 7,80,000 shares. All the money was duly received. Prepare an
extract of Balance Sheet of Sarang Ltd.
as per Schedule ll, Part I of the
Companies Act, 2013, disclosing the above information. Also prepare 'Notes to
Accounts' for the same. (Foreign 2013, Modified)
Answer:
As
per the Schedule III of Companies Act,
2013, the Company's Balance Sheet is presented as follows.
|
Blue chip Ltd. |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
(`) |
|
I.
Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital b.
Securities premium reserve |
1 2 |
78,00,000 15,60,000 |
|
Total |
|
93,60,000 |
|
|
|
|
|
II.
Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash
Equivalents |
2 |
93,60,000 |
|
Total |
|
93,60,000 |
|
|
|
|
NOTES
TO ACCOUNTS
|
|
|||
|
Note No. |
Particulars |
(`) |
|
|
1 |
Share
Capital |
|
|
|
|
Authorised Share Capital |
|
|
|
|
12,00,000
shares of `
10 each |
1,20,00,000 |
|
|
|
Issued Share Capital |
|
|
|
|
2,00,000 shares of ` 10 each |
2,00,000 |
|
|
|
|
||
|
|
Subscribed,
Called-up and Paid-up Share Capital |
|
|
|
|
7,80,000 shares of ` 10 each |
78,00,000 |
|
|
|
|
|
|
|
2 |
Cash
and Cash Equivalents |
|
|
|
|
Cash at Bank |
93,60,000 |
|
|
3 |
Reserve and surplus |
||
|
|
Securities
premium reserve 7,80,000
shares at `2 each |
15,60,000 |
|
Ts Grewal Solution 2024-2025
Click below for more Questions
Class 12 / Volume – II