Question 73: Jain Ltd. invited applications for issuing 1,12,000
equity shares of ` 10 each at par.
The amount per share
was payable as follows:
|
On
Application |
`1 |
|
On
Allotment |
`2 |
|
On First
call |
`3 |
|
On Second
and Final call |
`4 |
Applications
for 1,00,000 shares were received. Shares were fully allotted to all the
applicants. Ramesh
failed
to pay his allotment money which was ` 2,000. His shares were forfeited
immediately. Suresh did
not
pay the first call on 500 shares applied by him. His shares were forfeited
after the first call. The forfeited
shares
of Ramesh and Suresh were reissued at 9
per share fully paid-up. Afterwards the second and final
call
was made and was duly received.
Pass necessary Journal entries for the above
transactions in the books of Jain Ltd.
(CBSE 2019)
Answer:
|
Journal |
|
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
||
|
(i) |
Bank A/c (1,00,000 × 1) |
Dr. |
|
1,00,000 |
|
|
|
|
To Equity share application A/c |
|
|
|
1,00,000 |
|
|
|
(Being Application money received) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
Equity share application A/c |
Dr. |
|
1,00,000 |
|
|
|
|
To Equity Share Capital A/c |
|
|
|
1,00,000 |
|
|
|
(Being share application money
transferred to share Capital) |
|
|
|
|
|
|
|
Equity share allotment A/c |
Dr. |
|
2,00,000 |
|
|
|
|
To Equity Share Capital A/c |
2,00,000 |
||||
|
|
(Being allotment due) |
|||||
|
|
||||||
|
|
Bank A/c (2,00,000-2,000) |
1,98,000 |
||||
|
To Equity share allotment A/c |
1,98,000 |
|||||
|
|
(Being allotment money received) |
|||||
|
|
||||||
|
|
Equity Share Capital A/c |
|||||
|
|
To Equity share allotment A/c |
|||||
|
|
To Equity share forfeiture A/c |
|||||
|
|
(Being 1000 share of Ramesh forfeited due to non- payment of allotment) |
|||||
|
|
||||||
|
|
Equity share First and final
Call A/c |
Dr. |
2,97,000 |
|||
|
|
To Equity Share Capital A/c
(99,000×3) |
2,97,000 |
||||
|
|
(Being allotment due) |
|||||
|
|
||||||
|
|
Bank A/c (98,500×3) |
2,95,500 |
||||
|
|
To Equity share allotment A/c |
|
|
|
2,95,500 |
|
|
|
(Being allotment money received
except 500 shares of Suresh) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (500×6) |
|
|
3,000 |
|
|
|
|
To Equity share first call A/c (500×3) |
|
|
|
1,500 |
|
|
|
To Equity share forfeiture A/c (500×3) |
|
|
|
1,500 |
|
|
|
(Being 1000 share of Suresh forfeited due to non- payment of first Call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (1,000+500×9) |
|
|
13,500 |
|
|
|
|
Equity share forfeiture A/c (1500×1) |
|
|
1,500 |
|
|
|
|
To Equity Share Capital A/c |
|
|
|
15,000 |
|
|
|
(Being forfeited shares re-issue of
Ramesh of 1000 and Suresh 500 and re-issued at 9 fully
paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity share forfeiture A/c (1,000+1,500-1,500) |
|
|
1,000 |
|
|
|
|
To capital Reserve A/c |
|
|
|
1,000 |
|
|
|
(Being amount transferred to
capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Second and final call
A/c |
|
|
3,94,000 |
|
|
|
|
To Equity Share Capital A/c (98,500×4) |
|
|
|
3,94,000 |
|
|
|
(Being final Call due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
|
|
3,94,000 |
|
|
|
|
To Equity Share Second and final call A/c |
|
|
|
3,94,000 |
|
|
|
(Being final call money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Question 74:
Sof twareLtd. company with
registered capital of `
5,00,000 in shares of `
10 each issued 20,000 of such shares
payable ` 2 on application, `
4 on allotment, ` 2 on first call `
2 on final call. All the money payable on allotment was duly received but on
the first call being made, one shareholder paid the entire balance on his
holding of 300 shares and five
shareholders with a total holding of 1,000 shares failed to pay their dues on the
first call. These shares were forfeited for non-payment of first call money. Final call was made and all
the money due was received. Later on, forfeited shares were reissued @ ` 6 per share as fully paid-up.
Record the above in the company's Journal and prepare the Balance Sheet.
Answer:
Amount payable as
|
Application |
` |
2 |
|
Allotment |
` |
4 |
|
First Call |
` |
2 |
|
Final Call |
` |
2 |
|
|
|
10 |
|
Books
of Sof tware Ltd. |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
40,000 |
|
|
|
To Share Application A/c |
|
|
40,000 |
|
|
|
(Share application money received
for 20,000 shares at ` 2 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
40,000 |
|
|
|
To Share Capital A/c |
|
|
40,000 |
|
|
|
(Share application money of 20,000 shares at ` 2 each transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
80,000 |
|
|
|
To Share Capital A/c |
|
|
80,000 |
|
|
|
(Share allotment due on 20,000
shares at ` 4 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
80,000 |
|
|
|
To Share Allotment A/c |
|
|
80,000 |
|
|
|
(Share allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
40,000 |
|
|
|
To Share Capital A/c |
|
|
40,000 |
|
|
|
(Share first call due on 20,000
shares at ` 2 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
38,600 |
|
|
|
Call-in-Arrears A/c (1,000×2) |
Dr. |
|
2,000 |
|
|
|
To Share First Call A/c |
|
|
40,000 |
|
|
|
To Calls-in-Advance (300×2) |
|
|
600 |
|
|
|
(Share first call of `
2 per share received on 19,000 shares along with calls-in-advance of 300 shares at ` 2 each and holders of 1,000 shares failed to pay the first call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c |
Dr. |
|
8,000 |
|
|
|
To Share Forfeiture A/c (1,000×6) |
|
|
6,000 |
|
|
|
To Calls-In-Arrears A/c |
|
|
2,000 |
|
|
|
(1,000 shares of `
10 each on which ` 8 had called, forfeited for non-payment of first call ` 2 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Final Call A/c |
Dr. |
|
38,000 |
|
|
|
To Share Capital A/c |
|
|
38,000 |
|
|
|
(Share final call due on 19,000
shares at ` 2 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
37,400 |
|
|
|
Calls-In-Advance A/c |
Dr. |
|
600 |
|
|
|
To Share Final Call A/c |
|
|
38,000 |
|
|
|
(Share final call received from
18,700 shares and calls-in-advance of 300 shares adjusted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,000 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
4,000 |
|
|
|
To Share Capital A/c |
|
|
10,000 |
|
|
|
(1,000 shares, re-issued at ` 6 per share as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,000 |
|
|
|
To Capital Reserve A/c |
|
|
2,000 |
|
|
|
(Balance of Share Forfeiture Account after re-issue
transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
As per the Schedule III of
Companies Act, 2013, the Company's
Balance Sheet is presented as follows.
|
Sof
tware Ltd. |
||
|
Balance
Sheet |
||
|
Particulars |
Note
No. |
(`) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
2,00,000 |
|
b. Reserves and Surplus |
2 |
2,000 |
|
2. Non-Current Liabilities |
|
|
|
3. Current Liabilities |
|
|
|
Total |
|
2,02,000 |
|
|
|
|
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
3 |
2,02,000 |
|
Total |
|
2,02,000 |
NOTES TO ACCOUNTS
|
|
||
|
Note
No. |
Particulars |
(`) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
50,000 shares of ` 10 each |
5,00,000 |
|
|
Issued Share Capital |
|
|
|
20,000 shares of `
10 each |
2,00,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
20,000 shares of `
10 each |
2,00,000 |
|
|
|
|
|
2 |
Reserves and Surplus |
|
|
|
Capital Reserve |
2,000 |
|
|
|
|
|
3 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
2,02,000 |
|
|
|
|
Working Notes:
|
Share Forfeiture Credit (at the time of forfeiture of shares) |
6,000 |
|
Less: Share
Forfeiture Debit (at the time of re-issue shares) |
4,000 |
|
Balance in Share Forfeiture
Account after re-issue of shares |
2,000 |
Capital Reserve = Balance in Share
Forfeiture Account of re-issued shares =
` 2,000
Question 75:
Slow & Steady Ltd.
invited applications for 10,000 Equity Shares of `10 each for public
subscription. The amount of these shares
was payable as:
On application ` 1 per share, on allotment ` 2 per share, on first
call ` 3 per share and on second and final call ` 4 per share.
All sums payable on application, allotment and calls were duly received with
the following exceptions:
(i) A, who held 200 shares, failed to pay the money on
allotments and calls.
(ii) B, to whom 150 shares were allotted, failed to pay the money
on first call and final call.
(iii) C, who held 50 shares, did not pay the amount of second and final call.
The shares of A, B and C
were forfeited and were subsequently reissued for cash as fully paid-up at a
discount of 5%.
Pass necessary Journal entries to record these transactions in the books of X Ltd.
Answer:
Issued and Applied 10,000 Shares of `10
each
|
|
|
|
|
|
A |
|
B |
|
C |
|
Paid-up
Shares |
|
Application |
` |
1 |
(10,000 |
|
|
|
|
|
|
= |
10,000) |
|
Allotment |
` |
2 |
(10,000 |
– |
200 |
|
|
|
|
= |
9,800) |
|
First Call |
` |
3 |
(10,000 |
– |
200 |
– |
150 |
|
|
= |
9,650) |
|
Second and Final Call |
` |
4 |
(10,000 |
– |
200 |
– |
150 |
– |
50 |
= |
9,600) |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
Books
of Slow and Steady Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
10,000 |
|
|
|
To Equity Share Application A/c |
|
|
10,000 |
|
|
|
(Share application received for
10,000 shares at ` 1 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
10,000 |
|
|
|
To Equity Share Capital A/c |
|
|
10,000 |
|
|
|
(Share application money
transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
20,000 |
|
|
|
To Equity Share Capital A/c |
|
|
20,000 |
|
|
|
(Share allotment due on 10,000
shares at ` 2 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
19,600 |
|
|
|
Calls-In-Arrears A/c |
Dr. |
|
400 |
|
|
|
To Equity Share Allotment A/c |
|
|
20,000 |
|
|
|
(Share allotment of `
2 per share received on 9,800 shares and holder of 200 failed to pay to it) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c |
Dr. |
|
30,000 |
|
|
|
To Equity Share Capital |
|
|
30,000 |
|
|
|
(Share first call due on 10,000
shares at ` 3 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
28,950 |
|
|
|
Calls-In-Arrears A/c |
Dr. |
|
1,050 |
|
|
|
To Equity Shares First Call A/c |
|
|
30,000 |
|
|
|
(Share first call received on
9,650 shares and holders of 350 shares
failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Final Call A/c |
Dr. |
|
40,000 |
|
|
|
To Equity Share Capital A/c |
|
|
40,000 |
|
|
|
(Share final call due on 10,000
shares at ` 4 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
38,400 |
|
|
|
Calls-In-Arrears A/c |
Dr. |
|
1,600 |
|
|
|
To Equity Share Final Call A/c |
|
|
40,000 |
|
|
|
(Holders of 9,600 shares paid final call and holders of 400 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
2,000 |
|
|
|
To Share Forfeiture A/c (200 × 1) |
|
|
200 |
|
|
|
To Calls-In-Arrears A/c (200 × 9) |
|
|
1,800 |
|
|
|
(200 shares held by A on which
application money ` 1 was received, forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
1,500 |
|
|
|
To Share Forfeiture A/c (150 × 3) |
|
|
450 |
|
|
|
To Calls-In-Arrears A/c (150 × 7) |
|
|
1,050 |
|
|
|
(150 shares of `
10 each held by B forfeited for the non-payment of two calls ` each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
500 |
|
|
|
To Share Forfeiture A/c (50 × 6) |
|
|
300 |
|
|
|
To Calls-in-Arrears A/c (50 × 4) |
|
|
200 |
|
|
|
(50 shares of `
10 each held by C forfeited for the non-payment of final call ` 4 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (400 × 9.5) |
Dr. |
|
3,800 |
|
|
|
Share Forfeiture A/c (400 × .5) |
Dr. |
|
200 |
|
|
|
To Equity Share Capital A/c |
|
|
4,000 |
|
|
|
(400 shares of `
10 each re-issued at ` 9.5 per share as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
750 |
|
|
|
To Capital Reserve A/c |
|
|
750 |
|
|
|
(Balance in Share Forfeiture
Account after re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Working Note:
|
Share Forfeiture of 100 shares held by A |
` |
200 |
Cr. |
|
Share Forfeiture of 200 shares held by B |
` |
450 |
Cr. |
|
Share Forfeiture of 300 shares held by C |
` |
300 |
Cr. |
|
Total Share Forfeiture credit (at the time of cancellation of shares) |
` |
950 |
|
Calculation of Capital Reserve
Total Share Forfeiture (at the
time of cancellation of shares) = `
950
Less: Total Share Forfeiture (at
the time of re-issue of shares) = `
(200)
Capital Reserve
=
` 750
Question 76:
'Venus Ltd was registered with an authorised capital
of `40,00,000
divided into 4,00,000 equity shares of `
10 each. 70,000 of these shares were
issued as fully paid to 'M/s. Star Ltd! for building purchased from them.
2,00,000 shares were issued to the public and the amounts were payable as
follows:
|
On
Application |
-
`3 per
share |
|
On
Allotment |
-
`2 per
share |
|
On First
Call |
-
`2 per
share |
|
On Second
and Final Call |
-
` 3 per
share |
The amounts received on these shares were as
follows:
|
On
1,00,000 shares |
-
Full amount called |
|
On 60,000
shares |
-
`7 per
share |
|
On 30,000
shares |
-
`5 per
share |
|
On 10,000
shares |
-
`3 per
share |
The directors forfeited 10,000 shares on which only `
3 per share were received. These shares were reissued at `
12 per share fully paid. Pass necessary Journal entries for the above
transactions in the books of Venus Ltd.
(CBSE 2019 c)
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Building A/c (70,000 × 10) |
Dr. |
|
7,00,000 |
|
|
|
To M/s Star Ltd. A/c |
|
|
|
7,00,000 |
|
|
(Being building bought) |
|
|
|
|
|
|
|
|
|
|
|
|
|
M/s Star Ltd. A/c |
Dr. |
|
7,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
7,00,000 |
|
|
(Being purchase consideration paid
in equity share of ` 10 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (2,00,000×3) |
Dr. |
|
6,00,000 |
|
|
|
To Equity Share application
A/c |
|
|
|
6,00,000 |
|
|
(Being share application money
received) |
|
|
|
|
|
|
Equity Share application A/c |
Dr. |
|
6,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
6,00,000 |
|
|
(Being share application money
transferred to share capital ) |
|
|
|
|
|
|
|||||
|
|
Equity Share Allotment A/c (2,00,000 × 2) |
Dr. |
4,00,000 |
||
|
|
To Equity Share Capital A/c |
|
|
|
4,00,000 |
|
|
(Allotment money due) |
|
|||
|
|
|
|
|||
|
|
Bank A/c |
Dr. |
4,00,000 |
||
|
|
To Equity Share Allotment
A/c |
|
4,00,000 |
||
|
|
(Allotment money received) |
|
|||
|
|
|
|
|||
|
|
Equity Share First Call A/c (2,00,000 × 2) |
Dr. |
4,00,000 |
||
|
|
To Equity Share Capital A/c |
|
4,00,000 |
||
|
|
(Call money due) |
|
|||
|
|
|
|
|||
|
|
Bank A/c (1,60,000 × 2) |
Dr. |
3,20,000 |
||
|
|
To Equity Share First Call
A/c |
|
3,20,000 |
||
|
|
(Call money received) |
|
|||
|
|
|
|
|||
|
|
Equity Share Second & final
Call A/c (2,00,000 × 3) |
Dr. |
6,00,000 |
||
|
|
To Equity Share Capital A/c |
|
6,00,000 |
||
|
(Call money due) |
|
||||
|
|
|
||||
|
Bank A/c (1,00,000 × 3) |
Dr. |
3,00,000 |
|||
|
To Equity Share Second & final Call A/c |
|
3,00,000 |
|||
|
(Call money received except 1,00,000
shares) |
|
||||
|
|
|
||||
|
|
Equity Share Capital A/c (10,000×10) |
Dr. |
1,00,000 |
||
|
|
To Equity Share Allotment
A/c
(10,000×2) |
20,000 |
|||
|
|
To Equity Share First Call
A/c (10,000×2) |
|
20,000 |
||
|
To Equity Share Second & final Call A/c (10,000×3) |
30,000 |
||||
|
To Equity share forfeiture A/c (10,000×3) |
30,000 |
||||
|
(Being 10,000 share forfeited) |
|||||
|
Bank A/c |
Dr, |
1,20,000 |
|||
|
To Equity Share Capital A/c To Securities premium reserve a/c |
1,00,000 20,000 |
||||
|
(Being 10,000 forfeited shares,
re-issued @ `12 per share fully paid-up) |
|||||
|
Equity share forfeiture A/c To Capital Reserve A/c |
Dr. |
30,000 |
30,000 |
||
|
(Being balance of share forfeiture transferred to Capital
reserve a/c) |
|||||
Ts Grewal Solution 2024-2025
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Class 12 / Volume – II