Question 101
XYZ Ltd . is registered with an authorised capital of `
2,00,000 divided into 2,000 shares of ` 100 each of which ,
1,000 shares were of fered for public subscription at a premium of `
5 per share , payable as:
|
On application |
— |
` 10 per share, |
|
On allotment |
— |
`25 per share
(including premium), |
|
On first call |
— |
` 40 per share |
|
On final call |
— |
` 30 per share |
Applications were received for 1,800
shares, of which applications for 300
shares were rejected outright; the rest of the application were allotted 1,000 shares on
pro rata basis. Excess application money was transferred to allotment.
All the money was duly received except from Sundar , holder of 100 shares, who failed to pay allotment
and first call money. His shares were later forfeited and reissued to Shyam
at ` 60 per share `
70 paid-up. Final call has not been made.
Pass necessary Journal entries and prepare Cash Book in the books of XYZ Limited. (CBSE 2016)
Answer:
Authorised capital 2,000 shares of `
100 each.
Issued 1,000 shares of `
100 each at premium of ` 5
Applied 1,800 shares
|
Allotment
made as: |
|
Amount payable per shares as: |
|
|||
|
Applied |
|
Allotted |
|
Application |
` 10 |
|
|
1,500 |
|
1,000 |
|
Allotment |
` 25 |
(20 + 5) |
|
300 |
|
NIL |
|
First Call |
` 40 |
|
|
|
|
|
|
|
` 75 |
Called-up |
|
|
|
|
|
Final Call |
` 30 |
|
|
1,800 |
|
1,000 |
|
|
` 105 |
|
|
Books
of XYZ Limited Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
15,000 |
|
|
|
To Share Capital A/c |
|
|
10,000 |
|
|
|
To Share Allotment A/c |
|
|
5,000 |
|
|
|
(Share application of 1,000 shares transferred to Share Capital, ` 5,000 adjusted on allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
25,000 |
|
|
|
To Share Capital A/c |
|
|
20,000 |
|
|
|
To Securities Premium A/c |
|
|
5,000 |
|
|
|
(Share allotment due on 1,000
shares at ` 25 each including `
5 premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c |
Dr. |
|
40,000 |
|
|
|
To Share Capital A/c |
|
|
40,000 |
|
|
|
(First call due on 1,000 shares at
` 40 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities Premium A/c |
Dr. |
|
500 |
|
|
|
Share Capital A/c |
Dr. |
|
7,000 |
|
|
|
To Share Forfeiture A/c |
|
|
1,500 |
|
|
|
To Share Allotment A/c |
|
|
2,000 |
|
|
|
To Share First Call A/c |
|
|
4,000 |
|
|
|
(100 shares of `
100 each ` 70 called–up, forfeited for the non-payment of allotment and first call) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
1,000 |
|
|
|
To Share Capital A/c |
|
|
1,000 |
|
|
|
(100 shares of `
100 each re-issued at ` 60 per share, `
70 paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
500 |
|
|
|
To Capital Reserve A/c |
|
|
500 |
|
|
|
(Balance in Share Forfeiture after
re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash
Book |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Date |
Particulars |
Bank ` |
Date |
Particulars |
Bank ` |
||
|
|
|
|
|
|
|
||
|
|
Share Application |
18,000 |
|
Share Application |
3,000 |
||
|
|
Share Allotment |
18,000 |
|
|
|
||
|
|
Share First Call |
36,000 |
|
|
|
||
|
|
Share Capital |
6,000 |
|
Balance c/d |
75,000 |
||
|
|
|
78,000 |
|
|
78,000 |
||
|
|
|
|
|
|
|
||
Working Notes:
|
Number of share applied by Sunder |
= |
1,500×100/1,000 |
|
|
= |
150 shares |
Sunder
|
Money received on application 150
× ` 10 |
= |
1,500 |
|
Money transferred to Share Capital
100 × ` 10 |
= |
1,000 |
|
Excess Money on application |
|
500 |
|
Share allotment due 100 × ` 25 |
= |
2,500 |
|
Less: Excess money on application |
= |
500 |
|
Calls-in-Arrears on Allotment |
|
2,000 |
Allotment
|
Allotment due on all shares 1,000
× ` 25 |
= |
25,000 |
|
Less:
Adjustment of excess money on
application |
= |
5,000 |
|
|
|
20,000 |
|
Less:
Calls-in-Arrears by Sunder |
= |
2,000 |
|
Money received on allotment |
= |
18,000 |
Capital Reserve
|
Share Forfeiture |
Cr. |
1,500 |
|
Less:
Share Forfeiture |
Dr. |
1,000 |
|
Balance in Share Forfeiture after
reissue |
|
500 |
Capital Reserve = Balance in Share
Forfeiture after re-issue
= `
500
Question 102:
A
Ltd. invited applications for issuing 1,00,000 shares of `
10 each at a premium of ` 1 per share. The amount was payable as follows:
|
On Application |
– |
3 per share; |
|
On Allotment |
– |
3 per share (including premium); |
|
On First Call |
– |
3 per share; |
|
On Second and Final Call |
– |
Balance amount. |
Applications for 1,60,000 shares were received. Allotment was made on the
following basis:
|
(i) |
To applicants for 90,000 shares |
– |
40,000 shares; |
|
(ii) |
To applicants for 50,000 shares |
– |
40,000 shares; |
|
(iii) |
To applicants for 20,000 shares |
– |
Full shares. |
Excess money paid on application is
to be adjusted against the amount due on allotment and calls.
Rishabh, a shareholder, who applied
for 1,500 shares and belonged to category (ii), did not pay allotment, first
and second and final call money.
Another shareholder, Sudha, who
applied for 1,800 shares and belonged to category (i), did not pay the first
and second and final call money.
All the shares of Rishabh and Sudha were forfeited and were
subsequently reissued at ` 7 per share fully paid.
Pass the necessary Journal entries
in the books of A Ltd. Open
Calls-in-Arrears Account and Calls-in-Advance Account wherever required.
(CBSE
2018)
Answer:
|
In
the books of A Ltd. Journal |
|||||
|
Date |
Particulars |
|
L.F. |
Debit
(`) |
Credit
(`) |
|
|
Bank A/c (1,60,000 × 3) |
Dr. |
|
4,80,000 |
|
|
|
To Share Application A/c |
|
|
|
4,80,000 |
|
|
(Being application money received
on 1,60,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
4,80,000 |
|
|
|
To Share Capital A/c (1,00,000
× 3) |
|
|
|
3,00,000 |
|
|
To Call-in Advance A/c (4,80,000 – 3,00,000) |
|
|
|
1,80,000 |
|
|
(Being application money adjusted
on 1,00,000 shares and Excess treated as an advance) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c (1,00,000 × 3) |
Dr. |
|
3,00,000 |
|
|
|
To Share Capital A/c
(1,00,000 × 2) |
|
|
|
2,00,000 |
|
|
To Securities Premium
Reserve A/c (1,00,000 × 1) |
|
|
|
1,00,000 |
|
|
(Being allotment money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,47,300 |
|
|
|
Calls-in-Advance A/c (1,20,000 + 30,000) |
Dr. |
|
1,50,000 |
|
|
|
Calls-in-Arrear A/c (1,200 × 3) – 900] |
Dr. |
|
2,700 |
|
|
|
To Share Allotment A/c |
|
|
|
3,00,000 |
|
|
(Being allotment money received
after adjusting the excess application money and non-payment on 1,200 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share First Call A/c (1,00,000×3) |
Dr. |
|
3,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
3,00,000 |
|
|
(Being first call money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,64,600 |
|
|
|
Calls-in-Advance A/c (1,80,000 – 1,50,000) |
Dr. |
|
30,000 |
|
|
|
Calls-in-Arrears A/c [3,600 + (2,400 – 600)] |
|
|
5,400 |
|
|
|
To Share First Call A/c |
|
|
|
3,00,000 |
|
|
(Being amount received on first
call except on 2,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Second and Final Call A/c
(1,00,000 × 2) |
Dr. |
|
2,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
2,00,000 |
|
|
(Being share second and final call
money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,96,000 |
|
|
|
Call-in-Arrears A/c (2,000 × 2) |
Dr. |
|
4,000 |
|
|
|
To Share Second and Final
Call A/c |
|
|
|
2,00,000 |
|
|
(Being amount received on second
and final call except on 2,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c (2,000 × 10) |
Dr. |
|
20,000 |
|
|
|
Securities Premium Reserve A/c
(1,200 × 1) |
Dr. |
|
1,200 |
|
|
|
To Share Forfeiture A/c [(3,600 + 900) + (800 × 5 + 600)] |
|
|
|
9,100 |
|
|
To Calls-in-Arrears A/c (2,700 + 5,400 + 4,000) |
|
|
|
12,100 |
|
|
(Being 2,000 shares forfeited for
non-payment of amount due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (2,000 × 7) |
Dr. |
|
14,000 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
6,000 |
|
|
|
To Share Capital A/c |
|
|
|
20,000 |
|
|
(Being 2000 shares reissued at ` 7 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
3,100 |
|
|
|
To Capital Reserve A/c (9,100 – 6,000) |
|
|
|
3,100 |
|
|
(Being capital gain on reissued
shares transferred) |
|
|
|
|
Working Notes:
|
Computation
Table |
|||||||
|
Categories |
Shares
Applied |
Shares Allotted |
Money
received on Application @ `3 |
Money
Transferred to Share Capital @ ` 3 |
Allotment
due @ ` 3(including premium of ` 1) |
Excess
on Application |
Refund |
|
I |
90,000 |
40,000 |
2,70,000 |
1,20,000 |
1,20,000 |
1,50,000 |
Nil |
|
II |
50,000 |
40,000 |
1,50,000 |
1,20,000 |
1,20,000 |
30,000 |
Nil |
|
III |
20,000 |
20,000 |
60,000 |
60,000 |
60,000 |
– |
Nil |
|
|
|
|
|
|
|
|
|
|
Particulars |
Shares
Allotted |
Shares
Applied |
Excess
on Application |
Money
adjusted in calls |
|
Rishabh- Category (ii) |
(1,500×40,000/50,000) =1,200 |
1,500 |
900 |
– |
|
Sudha- Category (i) |
(1,800×40,000/90,000)
= 800 |
1,800 |
3,000 |
600 |
Question 103:
Ruchi Ltd. issued for public
subscription 40,000 Equity Shares of `
10 each at a premium of `
2 per share payable as:
|
On
application |
— |
` 2 per share; |
||
|
On allotment |
— |
` 5 per share (including premium), |
||
|
On
first call |
— |
` 2 per share, |
||
|
On
second and final call |
— |
` 3 per share. |
||
Applications were received for 60,000 shares. Allotment was made on pro rata
basis to the applicants for 48,000 shares, the remaining applications being
refused. Money overpaid on application was utilised towards sums due on
allotment. Ram to whom 1,600 shares were allotted failed to pay the allotment
money and Shyam to whom 2,000 shares were allotted failed to pay the two calls.
These shares were subsequently forfeited after the second and final call was
made. All the forfeited shares were reissued as fully paid-up @ ` 8 per share.
Give necessary Journal entries for the above transactions.
Answer:
Issued capital 40,000 shares of `
10 each at premium of ` 2
Applied ` 60,000 shares
|
Allotment made as: |
|
Payable
as: |
|
|
||
|
Applied |
|
Allotted |
|
Application |
` 2 |
|
|
48,000 |
|
40,000 |
|
Allotment |
` 5 |
(3+2) |
|
12,000 |
|
NIL |
|
First Call |
` 2 |
|
|
60,000 |
|
40,000 |
|
Second and Final Call |
` 3 |
|
|
|
|
|
|
|
`12 |
(10+2) per share |
|
Books
of Ruchi Limited |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,20,000 |
|
|
|
To Equity Share Application A/c |
|
|
1,20,000 |
|
|
|
(Application money received for
60,000 shares at ` 2 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
1,20,000 |
|
|
|
To Equity Share Capital A/c |
|
|
80,000 |
|
|
|
To Equity Share Allotment A/c |
|
|
16,000 |
|
|
|
To Bank A/c |
|
|
24,000 |
|
|
|
(Share application of 40,000 shares transferred to share capital, ` 16,000 adjusted on allotment and remaining ` 24,000 refunded) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
2,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
1,20,000 |
|
|
|
To Securities Premium A/c |
|
|
80,000 |
|
|
|
(Share allotment due on 40,000
shares at ` 5 each including `
2 premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,76,640 |
|
|
|
To Equity Share Allotment A/c |
|
|
1,76,640 |
|
|
|
(Share allotment received on all
shares except on 1,600 Shares held by Ram) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c |
Dr. |
|
80,000 |
|
|
|
To Equity Share Capital A/c |
|
|
80,000 |
|
|
|
(First call due on 40,000 shares
at ` 2 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
72,800 |
|
|
|
To Equity Share First Call A/c |
|
|
72,800 |
|
|
|
(First call received on 36,400
shares and holders of 3,600 failed to
pay it) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Second and Final Call
A/c |
Dr. |
|
1,20,000 |
|
|
|
To Equity Share Capital A/c |
|
|
1,20,000 |
|
|
|
(Second and final call due on
40,000 shares at ` 3 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,09,200 |
|
|
|
To Equity Share second and Final Call A/c |
|
|
1,09,200 |
|
|
|
(Second and final call received on
36,400 shares and holders of 3,600
shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
16,000 |
|
|
|
Securities Premium A/c |
Dr. |
|
3,200 |
|
|
|
To Share Forfeiture A/c |
|
|
3,840 |
|
|
|
To Equity Share Allotment A/c |
|
|
7,360 |
|
|
|
To Equity Share first Call A/c |
|
|
3,200 |
|
|
|
To Equity Share Second and Final Call A/c |
|
|
4,800 |
|
|
|
(1600 shares held by Ram forfeited
for non-payment amount due including premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c |
Dr. |
|
20,000 |
|
|
|
To Equity Share Forfeiture A/c |
|
|
10,000 |
|
|
|
To Equity Share First Call A/c |
|
|
4,000 |
|
|
|
To Equity Share Second and Final Call A/c |
|
|
6,000 |
|
|
|
(2,000 shares held by Shyam
forfeited for non-payment of amount
due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
28,800 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
7,200 |
|
|
|
To Equity Share Capital A/c |
|
|
36,000 |
|
|
|
(3,600 shares of `
10 each re-issued at ` 8 per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
6,640 |
|
|
|
To Capital Reserve A/c |
|
|
6,640 |
|
|
|
(Balance in Share Forfeiture
transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
Ram’s shares
Number of shares applied by Ram
=48,000/40,000×1,600=1,920 Shares
|
Money received on Application
(1,920 shares × ` 2) |
= |
`
3,840 |
|
Less: Application money transferred to Share Capital (1,600
shares × ` 2) |
= |
`
3,200 |
|
Excess money on Application |
= |
`
640 |
|
Share Allotment due (1,600 shares
× ` 5) |
` |
8,000 |
|
Less: Excess money on Application |
` |
640 |
|
Calls-in-Arrears on Allotment |
` |
7,360 |
Share Allotment
|
Share Allotment due (40,000 shares
× ` 5) |
2,00,000 |
|
Less: Excess
money on Application |
16,000 |
|
|
1,84,000 |
|
Less:
Calls-in-Arrears by Ram |
7,360 |
|
Money received on Allotment |
1,76,640 |
Share First Call
|
Share First Call due (40,000
shares × ` 2) |
80,000 |
|
Less:
Calls-in-Arrears by Ram and Shyam (3,600 shares ×` 2) |
7,200 |
|
Money received on First Call |
72,800 |
Share Final Call
|
Share Final Call due 40,000 Shares
× ` 3 |
1,20,000 |
|
Less:
Calls-in-Arrears by Ram and Shyam (3,600 shares × `
3) |
10,800 |
|
Money received on Second and Final
Call |
1,09,200 |
Capital Reserve
|
Share Forfeiture on Ram’s shares (money
received on application) |
3,840 |
|
|
Share Forfeiture on Shyam’s shares
(2,000 shares × ` 5) |
10,000 |
|
|
|
13,840 |
Cr. |
|
Less: Share Forfeiture |
7,200 |
Dr. |
|
Capital Reserve |
6,640 |
|
Question 104:
Janta Ltd. issued applications for 5,00,000 equity
shares of `10
each, at a premium of `4
per share. The amount was payable as follows:
On application `6
(including`2 premium), on
Allotment 6 (including`2 premium) and Balance
on first and final call.
Applications for 7,50,000 shares were received.
Allotment was made to all the applicants on pro rata basis. Mohan to whom 1,000
shares were allotted did not pay allotment and call money. Vikram to whom 500
shares were allotted, did not pay the call money. These shares were forfeited
and afterwards reissued @`8 per share fully
paid-up. Pass the necessary Journal entries.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Bank A/c (7,50,000×6) |
Dr. |
|
45,00,000 |
|
|
|
To Share Application A/c |
|
|
|
45,00,000 |
|
|
(Being share application money
received) |
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
45,00,000 |
|
|
|
To Share Capital A/c (5,00,000×4) |
|
|
|
20,00,000 |
|
|
To Securities Premium Reserve A/c(5,00,000×2) |
|
|
|
10,00,000 |
|
|
To Share allotment A/c (2,50,000×6) |
|
|
|
15,00,000 |
|
|
(Being share application money
transferred to share capital and Securities Premium Reserve and excess
transferred to allotment) |
|
|
|
|
|
|
Share allotment A/c (5,00,000×6) |
Dr. |
|
30,00,000 |
|
|
|
To Share Capital A/c (5,00,000×4) |
|
|
|
20,00,000 |
|
|
To Securities Premium Reserve A/c (5,00,000×2) |
|
|
|
10,00,000 |
|
|
(Being share allotment money
transferred to share capital and Securities Premium Reserve) |
|
|
|
|
|
|
Bank A/c |
Dr. |
|
14,97,000 |
|
|
|
To Share Allotment A/c |
|
|
|
14,97,000 |
|
|
(Being share allotment money
received and except 1,000
shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Or |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
14,97,000 |
|
|
|
Call-In-Arrears A/c (1,000×6-3000) |
Dr. |
|
3,000 |
|
|
|
To Share Allotment A/c |
|
|
|
15,00,000 |
|
|
(Being share allotment money
received and except 1,000
shares) |
|
|
|
|
|
|
Share Capital A/c (1,500×10) |
Dr. |
|
15,000 |
|
|
|
Securities Premium Reserve A/c |
Dr. |
|
2,000 |
|
|
|
(1,000×2) |
|
|
|
|
|
|
To Forfeited Shares A/c
(4,000+7,000) |
|
|
|
11,000 |
|
|
To Call-In-Arrears A/c |
|
|
|
6,000 |
|
|
(Being 1,500 shares forfeited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Or |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Capital A/c (1,500×10) |
Dr. |
|
15,000 |
|
|
|
Securities Premium Reserve A/c |
Dr. |
|
2,000 |
|
|
|
(1,000×2) |
|
|
|
|
|
|
To Forfeited Shares A/c
(4,000+7,000) |
|
|
|
11,000 |
|
|
To Share Allotment A/c |
|
|
|
3,000 |
|
|
To
Share First and Final A/c |
|
|
|
3,000 |
|
|
(Being 1,500 shares forfeited) |
|
|
|
|
|
|
Bank A/c (1,500×8) |
Dr. |
|
12,000 |
|
|
|
Forfeited Shares A/c (1,500×2) |
|
|
3,000 |
|
|
|
To Share Capital A/c (1,500×10) |
|
|
|
15,000 |
|
|
(Being 1500 shares forfeited
reissued at `8 as fully paid-up) |
|
|
|
|
|
|
Forfeited Shares A/c |
Dr. |
|
8,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
8,000 |
|
|
(Being full amount Forfeited on
2,000 Shares reissued, transferred to Capital Reserve) |
|
|
|
|
|
|
(Being Prof it of 1500 shares transferred to capital reserve
account) |
|
|
|
|
Ts Grewal Solution 2024-2025
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Class 12 / Volume – II