Question 105:
Nitro Paints Ltd. invited
applications for issuing 1,60,000 equity shares of ` 10 each at a premium of `
3 per share. The amount was payable as follows:
|
On
application |
— |
` 6 per share(including premium `1); |
|
On
allotment |
— |
` 3 per share(including premium ` 1); and |
|
The
balance |
— |
On First and Final call. |
Applications for 1,80,000
shares were received .Applications for 10,000 shares were rejected and
pro rata allotment was made to the remaining applicants.Over payment received
on application was adjusted towards sums due on allotment . All calls were
made and were duly received except allotment and final call from Aditya who
was allotted 3,200 shares. His shares were forfeited . Half of the forfeited shares were reissued for ` 43,000 as fully paid-up .
Pass necessary journal entries for the above transactions in the books of Nitro Paints Ltd. (CBSE 2017)
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Bank A/c (1,80,000 × 6) |
Dr. |
|
10,80,000 |
|
|
|
To Equity Share Application
A/c |
|
|
|
10,80,000 |
|
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
10,80,000 |
|
|
|
To Equity Share Capital A/c (1,60,000 × 5) |
|
|
|
8,00,000 |
|
|
To Securities Premium
Reserve A/c (1,60,000 × 1) |
|
|
|
1,60,000 |
|
|
To Share Allotment
A/c(10,000×6) |
|
|
|
60,000 |
|
|
To Bank A/c (10,000×6) |
|
|
|
60,000 |
|
|
(Application money transferred) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c
(1,60,000 × 3) |
Dr. |
|
4,80,000 |
|
|
|
To Equity Share Capital A/c (1,60,000 × 2) |
|
|
|
3,20,000 |
|
|
To Securities Premium
Reserve A/c (1,60,000 × 1) |
|
|
|
1,60,000 |
|
|
(Allotment money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (4,80,000 ─ 60,000 ─ 8,400) |
Dr. |
|
4,11,600 |
|
|
|
To Equity Share Allotment
A/c |
|
|
|
4,11,600 |
|
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c (1,60,000 × 4) |
Dr. |
|
6,40,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
4,80,000 |
|
|
To Securities Premium
Reserve A/c |
|
|
|
1,60,000 |
|
|
(Call money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,27,200 |
|
|
|
To Equity Share First Call
A/c |
|
|
|
6,27,200 |
|
|
(Call money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (3,200 × 10) |
Dr. |
|
32,000 |
|
|
|
Securities Premium Reserve A/c (3,200 × 2) |
Dr. |
|
6,400 |
|
|
|
To Equity Share Allotment
A/c |
|
|
|
8,400 |
|
|
To Equity Share First
& Final Call A/c |
|
|
|
12,800 |
|
|
To Equity Share Forfeiture
A/c |
|
|
|
17,200 |
|
|
(3,200 shares forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
43,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
16,000 |
|
|
To Securities Premium A/c |
|
|
|
27,000 |
|
|
(1,600 shares re–issued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Forfeiture A/c |
Dr. |
|
8,600 |
|
|
|
To Capital Reserve A/c |
|
|
|
8,600 |
|
|
(Prof it on re-issue transferred) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
Shares Applied by Aditya=1,70,000/1,60,000×3,200=3,400
|
Amount unpaid by Aditya on
Allotment |
|
|
Application money received |
20,400 |
|
Less: Transferred to Share Capital |
(19,200) |
|
Excess received on Application |
1,200 |
|
Allotment money due |
9,600 |
|
Less: Excess adjustment |
(1,200) |
|
Amount unpaid by Aditya |
8,400 |
Question 106:
XYZ Ltd. invited applications for issuing 50,000 Equity Shares of
`10 each . The amount was payable as:
|
On
application |
— |
` 3 per share, |
|
On allotment |
— |
` 4 per share, |
|
On first and
final call |
— |
` 3 per share. |
Applications were received for 75,000 shares and pro rata allotment was
made as:
Applicants for 40,000 shares were allotted 30,000 shares on pro rata basis.
Applicants for 35,000 shares were allotted 30,000 shares on pro rata
basis.
Ramu, to whom 1,200 shares were allotted out of the group applying for 40,000 shares, failed
to pay the allotment money. His shares were forfeited immediately after
allotment .
Shamu, who had applied for 700 shares out of the group applying for 35,000 shares , failed
to pay the first and final call . His shares were also forfeited. Out of the forfeited shares, 1,000 shares were
reissued @ Applicants for 40,000 shares were allotted 30,000 shares on pro
rata basis. 8 per share as fully paid-up. The reissued shares included
all the forfeited shares of Shamu.
Pass necessary Journal entries to record the above transactions.
Answer:
Issued 1,000 equity shares of `
10 each
Applied 1,800 shares
|
Allotment
made as: |
|
Amount payable per shares as: |
|||
|
Applied |
|
Allotted |
|
Application |
` 3 |
|
40,000 |
|
30,000 |
|
Allotment |
` 4 |
|
35,000 |
|
20,000 |
|
First Call |
` 3 |
|
1,800 |
|
1,000 |
|
|
` 10 |
|
Books
of XYZ Limited Journal
Entries |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,25,000 |
|
|
|
To Equity Share Application A/c |
|
|
2,25,000 |
|
|
|
(Share application money received
for 75,000 shares at ` 3 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
2,25,000 |
|
|
|
To Equity Share Capital A/c |
|
|
1,50,000 |
|
|
|
To Equity Share Allotment A/c |
|
|
75,000 |
|
|
|
(Application money of 50,000 shares transferred to share capital
and the remaining amount adjusted on allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
2,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
2,00,000 |
|
|
|
(Share allotment due on 50,000
shares at ` 4 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,21,400 |
|
|
|
To Equity Share Allotment A/c |
|
|
1,21,400 |
|
|
|
(Share allotment received on
48,800 shares after adjusting the excess money on application) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (1,200 × ` 7) |
Dr. |
|
8,400 |
|
|
|
To Share Forfeiture A/c |
|
|
4,800 |
|
|
|
To Equity Share Allotment A/c |
|
|
3,600 |
|
|
|
(1,200 shares of `
10 each ` 7 called-up forfeited for the non-payment of allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share First and Final Call
A/c |
Dr. |
|
1,46,400 |
|
|
|
To Equity Share Capital A/c |
|
|
1,46,400 |
|
|
|
(First and final call due on
48,800 shares at ` 3 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,45,200 |
|
|
|
To Equity Share First and Final Call A/c |
|
|
1,45,200 |
|
|
|
(Share first and call received
48,800 shares at ` 3 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
4,000 |
|
|
|
To Share Forfeiture A/c (400 × ` 7) |
|
|
2,800 |
|
|
|
To Equity Shares First and Final Call A/c |
|
|
1,200 |
|
|
|
(400 shares forfeited for the
non-payment of first and final call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
8,000 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,000 |
|
|
|
To Equity Share Capital A/c |
|
|
10,000 |
|
|
|
(1,000 shares of `
10 each re-issued at ` 8 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
3,200 |
|
|
|
To Capital Reserve A/c |
|
|
3,200 |
|
|
|
(Balance of 1,000 re-issued shares in Share Forfeiture
Account transferred to Capital Reserve Account) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes-
Rumu’s Share
Number of shares applied = 40,000/30,000×1,200 = 1,600 shares
|
Money received on Application
1,600 shares × ` 3 |
= |
`
4,800 |
|
Money adjusted on Application
1,200 Shares × ` 3 |
= |
`
3,600 |
|
Excess on Application |
|
`
1,200 |
|
Allotment due on 1,200 shares × ` 4 |
= |
4,800 |
|
Less: Excess
money on Application |
= |
1,200 |
|
Calls-in-Arrears on Allotment |
|
3,600 |
Share Allotment
|
Share Allotment due 50,000 shares
× ` 4 |
= |
2,00,000 |
|
Less: Excess
money on application |
= |
75,000 |
|
|
|
1,25,000 |
|
Less:
Calls-in-Arrears on Allotment |
= |
3,600 |
|
Money received on Allotment |
= |
1,21,400 |
Shamu’s Shares
Number of shares allotted to Shamu =20,000/35,000×700 = 400 shares
First and Final Call
|
First and Final Call due; 48,800
shares × ` 3 |
= |
1,46,400 |
|
Less:
Calls-in-Arrears by Shamu; 400 shares × `
3 |
= |
1,200 |
|
Money received on of First and Final Call |
|
1,45,200 |
Capital Reserve
Shares re-issued out the shares
forfeited from Ramu = 1,000 shares − Shamu’s shares
= 1,000 − 400
= 600 shares
on re-isssue Ramu’s shares:
|
Capital Reverse on re-issue of 600 shares forfeited from Ramu |
||||
|
Share
Forfeiture Cr. 4,800/1,200 |
= |
` |
4 |
|
|
Share
Forfeiture Dr. |
= |
` |
2 |
|
|
Share
Forfeiture after re-issued |
|
` |
2 |
per share |
Capital Reserve after re-issue of 600 shares = Share Forfeiture after re-issue (per
share) × 600 shares
= `
2 × 600
= `
1,200
on re-isssue Shamu’s shares:
|
Share Forfeiture |
Cr. |
` 7 |
|
|
Share Forfeiture |
Dr. |
` 2 |
|
|
Share Forfeiture after re-issue |
` 5 |
per share |
|
Capital Reserve after re-issue of 400 shares = Share Forfeiture after re-issue (per
share) × 600 shares
= `
5 × 400
= `
2,000
Total amount of Capital Reserve = Capital Reserve of 600 shares + Capital Reserve of 400 shares
|
Total amount of Capital Reserve |
= Capital Reserve of 600 shares + Capital Reserve of 400 shares |
|
|
= ` 1,200 + `
2,000 |
|
= ` 3,200 |
Question
107:
Konark Ltd. invited applications for issuing
3,00,000 shares of `
10 each. The amount per share was payable as follows: `
3 on application, `
3 on allotment, and ` 4 on first and final
call.
The company received applications for 4,00,000
shares. Allotment was done as follows:
(i) Applicants of 2,40,000 shares were allotted 2,00,000 shares.
(ii) Applicants of 1,20,000 shares were allotted 80,000 shares.
(iii) Remaining applicants were allotted 20,000
shares.
Money overpaid on applications was adjusted towards sums
due on allotment. Divij, a shareholder belonging to group (ii), who had applied
for 6,000 shares, failed to pay allotment and call money, Faisal. Another
shareholder, who was allotted 10,000 shares, paid the call money along with
allotment. Faisal belonged to group (i),
Divi's shares were forfeited after the first and
final call. Half of the forfeited shares
were reissued @ 10 per share fully paid.
Pass the necessary Journal entries to record the
above transactions in the books of the
company.
(CBSE
2020)
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Bank A/c (4,00,000 ×3) |
Dr. |
|
12,00,000 |
|
|
|
To Share Application A/c |
|
|
|
12,00,000 |
|
|
(Being share application money
received) |
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
12,00,000 |
|
|
|
To Share Capital A/c (3,00,000×3) (WN.1) |
|
|
|
9,00,000 |
|
|
To Share allotment A/c (2,50,000×6) (WN.1) |
|
|
|
3,00,000 |
|
|
(Being share application money
transferred to share capital and excess transferred to allotment) |
|
|
|
|
|
|
Share allotment A/c (3,00,000×3) |
Dr. |
|
9,00,000 |
|
|
|
To Share Capital A/c (3,00,000×3) |
|
|
|
9,00,000 |
|
|
(Being share allotment money
transferred to share capital) |
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,34,000 |
|
|
|
To Share Allotment A/c |
|
|
|
5,94,000 |
|
|
To First and Final Call A/c
(10,000×4) |
|
|
|
40,000 |
|
|
(Being share allotment money
received and except 4,000
shares from Divij and Faisal. Another shareholderpaid the call money along
with allotment for 10,000 shares) |
|
|
|
|
|
|
First and Final Call A/c (3,00,000×4) |
Dr. |
|
12,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
12,00,000 |
|
|
(Being First and Final Call was
due) |
|
|
|
|
|
|
Bank A/c (1,500×8) |
Dr. |
|
11,44,000 |
|
|
|
To First and Final Call A/c |
|
|
|
11,44,000 |
|
|
(Being First and Final Call money
received and except
4,000 shares from Divij) |
|
|
|
|
|
|
Share Capital A/c (4,000×10) |
Dr. |
|
40,000 |
|
|
|
To Forfeited Shares A/c
(4,000×3+6,000) |
|
|
|
12,000 |
|
|
To Share Allotment A/c (4,000×3) |
|
|
|
6,000 |
|
|
To
Share First and Final A/c(4,000×4) |
|
|
|
16,000 |
|
|
(Being 4,000 shares forfeited for
not payment of allotment and call) |
|
|
|
|
|
|
Bank A/c (2,000×10) |
Dr. |
|
20,000 |
|
|
|
To Share Capital A/c (2,000×10) |
|
|
|
20,000 |
|
|
(Being 2,000 shares forfeited
reissued at `10 as fully paid-up) |
|
|
|
|
|
|
Forfeited Shares A/c |
Dr. |
|
|
|
|
|
To Capital Reserve A/c |
|
|
|
|
|
|
(Being full amount Forfeited on
2,000 Shares reissued, transferred to Capital Reserve) |
|
|
|
|
|
|
(Being Prof it of 1500 shares transferred to capital reserve
account) |
|
|
|
|
Working Notes:
WN.1:
Table of Disposal of application money
|
Category |
Shares
applied |
Shares
allotted |
Disposal of application money |
||
|
Shares
application money received |
Share
capital |
Shares
allotment |
|||
|
1 |
2,40,000 |
2,00,000 |
7,20,000 |
6,00,000 |
1,20,000 |
|
2 |
1,20,000 |
80,000 |
3,60,000 |
2,40,000 |
1,20,000 |
|
3 |
40,000 |
20,000 |
1,20,000 |
60,000 |
60,000 |
|
|
4,00,000 |
3,00,000 |
12,00,000 |
9,00,000 |
3,00,000 |
|
|
|
|
4,00,000×3 |
3,00,000×3 |
|
WN.
2:
Divij belong to group (ii) applied 6,000 and allotted 4,000
Money received on application = 6,000×3=18,000
Money received on application Transferred to share capital
=4,000×3=12,000
And advance for allotment transferred =18,000-12,000=6,000
Amount Due on allotment was = 4,000×3=12,000
Amount not paid on allotment = 12,000-6,000=6,000 (call in
arrears)
Faisal belong to group (i) applied 12,000 and allotted 10,000
Paid call with allotment
Question 108:
Max Ltd. invited applications for
2,00,000 Equity Shares of `
10 each to be issued at 20% premium. The money payable per shares was: on
application ` 5, on allotment `
4 (including premium of `
2), first call ` 2 and final call ` 1.
Applications were received for 2,40,000 shares and allotment was made as:
(i) to applicants for 1,00,000 shares— in full,
(ii) to applicants for 80,000 shares—60,000 shares,
(iii) to applicants for 60,000 shares—40,000 shares.
Applicants of 1,000 shares falling in
Category
(i) and applicants of 1,200 shares
falling in Category
(ii) failed to pay allotment money. These shares were forfeited on failure to
pay first call. Holders of 1,200 shares
falling in Category
(iii) failed to pay the first and final call and these shares were forfeited
after final call.
1,300 shares[1,000 of Category(i) and
300 of Category (ii)] were reissued
at ` 8 per share as fully paid-up.
Journalise the above transactions. Prepare Cash book and Balance Sheet.
Answer:
Applied shares 2,40,000
|
Allotment
made as: |
|
Payable as: |
|
|||
|
Applied |
|
Allotted |
|
Application |
` 5 |
|
|
1,00,000 |
|
1,00,000 |
|
Allotment |
` 4 |
(2 + 2) |
|
80,000 |
|
60,000 |
|
First Call |
` 2 |
|
|
60,000 |
|
40,000 |
|
Final Call |
Re 1 |
|
|
2,40,000 |
|
2,00,000 |
|
|
` 12 |
(10 + 2) per share |
|
Cash
Book |
|||||
|
Dr. |
|
Cr. |
|||
|
Date |
Particulars |
` |
Date |
Particulars |
` |
|
|
|
|
|
|
|
|
|
Equity Share Application (2,40,000
× ` 5) |
12,00,000 |
|
Balance c/d |
|
|
|
Equity Share Allotment (See
note-2) |
5,93,900 |
|
|
|
|
|
Equity Share First Call (See
note-3) |
3,93,800 |
|
|
|
|
|
Equity Share First Call |
1,96,900 |
|
|
|
|
|
(1,96,900 shares × Re 1) |
|
|
|
|
|
|
Equity Share Capital (1,000shares
of category i) |
8,000 |
|
|
|
|
|
Equity Share Capital (300
shares of category ii) |
2,400 |
|
23,95,000 |
|
|
|
|
23,95,000 |
|
23,95,000 |
|
|
|
|
|
|
|
|
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
12,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
10,00,000 |
|
|
|
To Equity Share allotment A/c |
|
|
2,00,000 |
|
|
|
(Equity Share application money of
2,00,000 shares at ` 5 each transferred to Share Capital and ` 2,00,000 adjusted on allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
8,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
4,00,000 |
|
|
|
To Securities Premium A/c |
|
|
4,00,000 |
|
|
|
(Share allotment due on 2,00,000
shares at ` 4 each including `
2 premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c |
Dr. |
|
4,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
4,00,000 |
|
|
|
(First call due on 2,00,000 shares
at ` 2 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
9,000 |
|
|
|
Securities Premium A/c |
Dr. |
|
2,000 |
|
|
|
To Share Forfeiture A/c (900 shares × ` 5) |
|
|
5,000 |
|
|
|
To Equity Share Allotment A/c (900 shares × ` 4) |
|
|
4,000 |
|
|
|
To Equity Share First Call A/c (900 shares × ` 2) |
|
|
2,000 |
|
|
|
(1,000 shares of category (i) ` 10 each, on which `
8 had called-up, forfeited for the non-payment of amount due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
8,100 |
|
|
|
Securities Premium A/c |
Dr. |
|
1,800 |
|
|
|
To Share Forfeiture A/c |
|
|
6,000 |
|
|
|
To Equity Shares Allotment A/c |
|
|
2,100 |
|
|
|
To Equity Shares First-Call A/c |
|
|
1,800 |
|
|
|
(900 shares of category (ii) forfeited for the non-payment of
amount due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Final Call A/c |
Dr. |
|
1,98,100 |
|
|
|
To Equity Shared Capital A/c |
|
|
1,98,100 |
|
|
|
(Final call due on 1,98,100 shares
at Re 1 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
12,000 |
|
|
|
To Share Forfeiture A/c |
|
|
8,400 |
|
|
|
To Share First Call A/c |
|
|
2,400 |
|
|
|
To Share Final Call A/c |
|
|
1,200 |
|
|
|
(1,200 shares of category (iii) forfeited for the non-payment
amount due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
2,000 |
|
|
|
To Equity Share Capital A/c |
|
|
2,000 |
|
|
|
(Loss on re-issue of 1,000 shares of category (i) charged from Share Forfeiture
Account) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
600 |
|
|
|
To Equity Share Capital A/c |
|
|
600 |
|
|
|
(Loss on re-issue of 300 of category (ii) charged from Share Forfeiture
Account) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
4,400 |
|
|
|
To Capital Reserve A/c |
|
|
4,400 |
|
|
|
(Balance in Share Forfeiture
Account of 1,300 re-issued shares
transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
As per the Schedule III of
Companies Act, 2013, the Company's
Balance Sheet is presented as follows.
|
Max
Ltd. |
||
|
Balance
Sheet |
||
|
Particulars |
Note
No. |
(`) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
19,94,400 |
|
b. Reserves and Surplus |
2 |
4,00,600 |
|
2. Non-Current Liabilities |
|
|
|
3. Current Liabilities |
|
|
|
Total |
|
23,95,000 |
|
|
|
|
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
3 |
23,95,000 |
|
Total |
|
23,95,000 |
NOTES TO ACCOUNTS
|
|
|||
|
Note
No. |
Particulars |
(`) |
|
|
1 |
Share Capital |
|
|
|
|
Authorised Share Capital |
|
|
|
|
……. Equity Shares of `
10 each |
- |
|
|
|
Issued Share Capital |
|
|
|
|
2,00,000 Equity Shares of `
10 each |
20,00,000 |
|
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
|
1,98,200 Equity Shares of `
10 each |
19,82,000 |
|
|
|
Add:
Shares Forfeited (600 shares × `
6.66) |
4,000 |
|
|
|
Add: Shares Forfeited (1,200 shares × ` 7) |
8,400 |
19,94,400 |
|
|
|
|
|
|
2 |
Reserves and Surplus |
|
|
|
|
Securities Premium |
3,96,200 |
|
|
|
Capital Reserve |
4,400 |
4,00,600 |
|
|
|
|
|
|
3 |
Cash and Cash Equivalents |
|
|
|
|
Cash at Bank |
23,95,000 |
|
|
|
|
|
|
Working Notes:
1.1,200 shares of Category (ii)
Number of share allotted =
60,000/80,000 ×1,200=900shares
|
Money received on application
(1,200 shares × ` 5) |
= |
6,000 |
|
Less:
Application money transferred to Share Capital (900 shares × ` 5) |
= |
4,500 |
|
Excess money received from 1,200
shares on Application |
= |
1,500 |
|
Money due on Allotment (900 shares
× ` 4) |
= |
3,600 |
|
Less: Excess
money on Application |
= |
1,500 |
|
Calls-in-Arrears on Allotment of category (ii) |
|
2,100 |
2. Share Allotment
|
Money due on Allotment (2,00,000
shares × ` 4) |
= |
8,00,000 |
|
Less: Excess
money on Application |
= |
2,00,000 |
|
Less:
Calls-in-Arrears 1,000 shares of category (i) (1,000 shares × ` 4) |
= |
4,000 |
|
Less:
Calls-in-Arrears 1,200 shares of category (ii) |
= |
2,100 |
|
Money received on Allotment |
= |
5,93,900 |
3. Share First Call
|
First Call due on 2,00,000 shares
× ` 2 |
= |
4,00,000 |
|
Less:
Calls-in-Arrears on 3,100 shares × `
2 (1,000 + 900 + 1,200 shares of category (i), (ii) and (iii) respectively) |
|
(6,200) |
|
Money received on First Call |
|
3,93,800 |
4. Share Final Call
|
Money due on Share Final Call (2,00,000 – 1900) × ` 1 |
= |
1,98,100 |
|
Less:
Calls-in-Arrears of 1,200 shares of Category (iii) |
|
1,200 |
|
Money received on Final Call |
|
1,96,900 |
Capital Reserve
Calculation of Share Forfeiture of 1,000 shares of category (i)
|
Share
Forfeiture |
` 5,000 |
Cr. |
|
Less: Share Forfeiture |
` 2,000 |
Dr. |
|
Capital
Reserve of 1,000 shares (balance
after re-issue) |
` 3,000 |
Cr. |
Calculation of Share Forfeiture of 300 shares of category (ii)
|
Share
Forfeiture = 6,000/900 Credit |
= |
` |
6.67 |
per share |
|
Less: Share
Forfeiture Debit |
= |
` |
2 |
per share |
|
Capital
Reserve (balance after re-issue) |
= |
` |
4.67 |
per share |
Capital Reserve of 300 shares = Capital Reserve (per share)
× No. of shares re-issued = ` 4.67 × 300 shares = `
1,400
Total Capital Reserve of 1,300 shares
= Capital Reserve of 1,000 shares of category (i) + Capital Reserve of 300 shares of category (ii) = 3,000 + 1,400 = ` 4,400
Ts Grewal Solution 2024-2025
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Class 12 / Volume – II