T. S. Grewal Solutions for Class 12-commerce Accountancy CBSE Chapter 8: Company Accounts - Accounting for Share Capital

Class 12-commerce T S GREWAL Solutions Accountancy Chapter 8: Company Accounts - Accounting for Share Capital

Company Accounts - Accounting for Share Capital Exercise 8.113

Company Accounts - Accounting for Share Capital Exercise 8.114

Company Accounts - Accounting for Share Capital Exercise 8.115

Company Accounts - Accounting for Share Capital Exercise 8.116

Company Accounts - Accounting for Share Capital Exercise 8.117

Company Accounts - Accounting for Share Capital Exercise 8.118

Company Accounts - Accounting for Share Capital Exercise 8.119

Company Accounts - Accounting for Share Capital Exercise 8.120

Company Accounts - Accounting for Share Capital Exercise 8.121

Company Accounts - Accounting for Share Capital Exercise 8.122

Company Accounts - Accounting for Share Capital Exercise 8.123

Company Accounts - Accounting for Share Capital Exercise 8.124

Company Accounts - Accounting for Share Capital Exercise 8.125

Company Accounts - Accounting for Share Capital Exercise 8.126

Company Accounts - Accounting for Share Capital Exercise 8.127

Company Accounts - Accounting for Share Capital Exercise 8.128

Company Accounts - Accounting for Share Capital Exercise 8.129

Company Accounts - Accounting for Share Capital Exercise 8.130

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Company Accounts - Accounting for Share Capital Exercise 8.113

Company Accounts - Accounting for Share Capital Exercise 8.114

Company Accounts - Accounting for Share Capital Exercise 8.115

Company Accounts - Accounting for Share Capital Exercise 8.116

Company Accounts - Accounting for Share Capital Exercise 8.117

Company Accounts - Accounting for Share Capital Exercise 8.118

Company Accounts - Accounting for Share Capital Exercise 8.119

Company Accounts - Accounting for Share Capital Exercise 8.120

Company Accounts - Accounting for Share Capital Exercise 8.121

Company Accounts - Accounting for Share Capital Exercise 8.122

Company Accounts - Accounting for Share Capital Exercise 8.123

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Gopal Ltd
Balance Sheet
Particulars	Note No.	Rs.
I. Equity and Liabilities
----1. Shareholder's Funds
------a. Share Capital	1	44,90,000
----2. Non - Current Liabilities
----3. Current Liabilities
Total		44,90,000
II. Assets
----1. Non - Current Assets
----2. Current Assets
------a. Cash and Cash Equivalents	2	44,90,000
Total		44,90,000

NOTES TO ACCOUNTS
Note No.	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	50,000 equity Shares of Rs.100 each		50,00,000
	Issued Share Capital
	50,000 equity shares of Rs.100 each		50,00,000
	Subscribed, Called -up and Paid up Share Capital
	45,000 equity Share of Rs.100 each	45,00,000
	Less: Calls in Arrears (500 Shares × Rs.20)	(10,000)	44,90,000

2.	Cash and Cash Equivalents
	Cash at Bank		44,90,000

Balance Sheet of Himmat Ltd.
Particulars	Note No	Rs.
I. Equity and Liabilities
----1. Shareholders' Funds
-------Share Capital	1	20,00,000
Total		20,00,000

II. Assets
----2. Current Assets
-------Cash and Cash Equivalents	2	20,00,000
Total		20,00,000

NOTES TO ACCOUNTS
Note No.	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	5,00,000 equity Shares of Rs.10 each		50,00,000
	Issued Share Capital
	50,000 equity shares of Rs.10 each	5,00,000
	1,50,000 Equity Shares of Rs.10 Each	15,00,000	20,00,000
	Subscribed and Paid up Share Capital
	50,000 equity Share of Rs.10 each	5,00,000
	1,50,000 Equity Shares of Rs.10 each	15,00,000	20,00,000

2.	Cash and Cash Equivalents
	Bank		20,00,000

Balance Sheet of Lennova Ltd
Particulars	Note No.	Rs.
I. Equity and Liabilities
----1. Shareholder's Funds
------a. Share Capital	1	42,50,000
------b. Reserve and Surplus	2	5,00,000
Total		47,50,000

II. Assets
----1. Current Assets
-------Cash and Cash Equivalents	3	47,50,000
Total		47,50,000

NOTES TO ACCOUNTS
Note No	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	1,00,000 equity Shares of Rs.100 each		1,00,00,000
	Issued Share Capital
	25,000 equity shares of Rs.100 each	25,00,000
	25,000 Equity Shares of Rs.100 each	25,00,000	50,00,000
	Subscribed and Paid up Share Capital
	Fully Called-up and Paid- up Capital
	25,000 Equity Shares of Rs.100 each	25,00,000
	Partially Called - up andPaid - up Capital
	25,000 Equity Shares Rs.100 each Rs.70 Called up	17,50,000	42,50,000

2.	Reserves and Surplus
	Securities Premium Reserve		5,00,000
	(25,000 shares @ Rs.20 per share)

3.	Cash and Cash Equivalents
	Bank		47,50,000

Balance Sheet of Star Ltd
Particulars	Note No.	Rs.
I. Equity and Liabilities
----1. Shareholder's Funds
------a. Share Capital	1	23,63,000
Total		23,63,000

II. Assets
----1. Current Assets
-------Cash and Cash Equivalents	2	23,63,000
Total		23,63,000

NOTES TO ACCOUNTS
Note No	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	50,000 equity Shares of Rs.100 each		50,00,000
	Issued Share Capital
	25,000 Equity Shares of Rs.100 each	25,00,000	25,00,000
	Subscribed and Paid up Share Capital
	Fully Called-up and Paid- up Capital
	23,750 Equity Shares of Rs.100 each	23,75,000
	Less: Calls-in-Arrears (20×600)	12,000	23,63,000


2.	Cash and Cash Equivalents
	Bank		23,63,000

Authorised Capital: Rs.25,00,000 (2,50,000 Shares of Rs.10 each)

Issued and subscribed Capital: Rs.25,00,000 (2,50,000 Shares of Rs.10 each)


Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c	Dr.		25,00,000
	--------To Equity Share Application A/c				25,00,000
	(Being share application money received for 2,50,000 equity share of Rs.10 each)

	Equity share Application A/c	Dr.		25,00,000
	--------To Equity Share Capital A/c				25,00,000
	(Being share application of 2,50,000 equity shares of Rs.10 each transferred to equity share capital A/c)

Authorised Capital: Rs.16,00,000 (1,60,000 Shares of Rs.10 each)

Issued and subscribed Capital: Rs.8,00,000 (80,000 Shares of Rs.10 each)


Books of XYZ Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c	Dr.		8,00,000
	--------To Equity Share Application A/c				8,00,000
	(Being share application money received for 80,000 equity share of Rs.10 each)

	Equity share Application A/c	Dr.		8,00,000
	--------To Equity Share Capital A/c				8,00,000
	(Being share application of 80,000 equity shares of Rs.10 each transferred to equity share capital A/c)

Total

Rs.100

Books of Hema Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c	Dr.		2,00,000
	-------- To Share Application A/c				2,00,000
	(Being share application money received for 10,000 shares at Rs.20 per share)

	Share Application A/c	Dr.		2,00,000
	-------- To Share Capital A/c				2,00,000
	(Being share application of 10,000 shares of Rs.20 each transferred to share Capital)

	Share Allotment A/c	Dr.		3,00,000
	-------- To Share Capital A/c				3,00,000
	(Being share allotment due on 10,000 shares at Rs.30 per share)

	Bank A/c	Dr.		3,00,000
	-------- To Share Allotment A/c				3,00,000
	(Being share allotment money received for 10,000 Shares at Rs.30 per share)

	Share First Call A/c	Dr.		2,00,000
	-------- To Share Capital A/c				2,00,000
	(Being share first call due on 10,000 shares at Rs.20 per share)

	Bank A/c	Dr.		2,00,000
	-------- To Share First call A/c				2,00,000
	(Being share first call received on 10,000 shares at Rs.20 per share)

	Share Final Call A/c	Dr.		3,00,000
	-------- To Share Capital A/c				3,00,000
	(Being share Final call due on 10,000 shares at Rs.30 per shares

	Bank A/c	Dr.		3,00,000
	-------- To Share Final Call A/c				3,00,000
	(Being share final call received on 10,000 shares of Rs.30 per share)

Journal
Date	Particulars		L.F.	Debit Amount (Rs.)	Credit Amount (Rs.)

	Share Application A/c	Dr.		90,000
	To Share Capital				90,000
	(Application money transferred to Capital A/c)

	Share Allotment A/c	Dr.		1,20,000
	To Share Capital A/c				1,20,000
	(Allotment money transferred to Capital A/c)

	Share First and Final Call A/c	Dr.		90,000
	To Share Capital A/c				90,000
	(Call money transferred to Capital A/c)

Cash Book (Bank Column)
Dr.				Cr.
Particulars	Amount Rs.	Particulars	Amount Rs.
Share Application A/c	90,000	Balance c/d	3,00,000
Share Allotment A/c	1,20,000
Share First and Final Call A/c	90,000
	3,00,000		3,00,000

Cash Book
Dr.					Cr.
Date	Particulars	Bank Rs.	Date	Particulars	Bank Rs.
	To Equity Share Application A/c	10,000		By Balance c/d	1,50,000
	To Preference Share Application A/c	12,500
	To Equity Share Allotment A/c	40,000
	To Preference Share Allotment A/c	12,500
	To Equity Share First Call A/c	25,000
	To Preference share First and Final Call A/c	25,000
	To Equity Share Final Call A/c	25,000
		1,50,000			1,50,000

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Equity Share Application A/c	Dr.		10,000
	------- To Equity Share Capital A/c				10,000
	(Being equity Share application of 1,000 shares of 10 each transferred to equity share capital account)

	Preference Share Application A/c	Dr.		12,500
	-------- To 9% Preference Share Capital A/c				12,500
	(Being preference share application of 500 shares Rs.25 each transferred to 9% preference share capital account)

	Equity Share Allotment A/c	Dr.		40,000
	-------- To Equity Share Capital A/c				40,000
	(Being equity share allotment due on 1,000 shares at Rs.40 each)

	Preference Share Allotment A/c	Dr.		12,500
	-------- To 9% Preference Share Capital A/c				12,500
	(Being preference share allotment due on 500 shares at Rs.25 each)

	Equity Share First Call A/c	Dr.		25,000
	-------- To Equity Share Capital A/c				25,000
	(Being equity share first call due on 1,000 shares at Rs.25 each)

	Preference Share First and Final Call A/c	Dr.		25,000
	--------- To 9% Preference Share Capital A/c				25,000
	(Being preference share first and final call due on 500 shares at Rs.50 each)

	Equity Share Final Call A/c	Dr.		25,000
	------- To Equity Share Capital A/c				25,000
	(Being equity share final call due on 1,000 shares at Rs.25 each)

Balance Sheet
Particulars	Note No	Rs.
I. Equity and Liabilities
----1. Shareholder's Funds
------a. Share Capital	1	1,50,000
----2. Non-Current Liabilities
----3. Current Liabilities
Total		1,50,000

II. Assets
----1. Non-Current Assets
----2. Current Assets
------a. Cash and Cash Equivalents	2	1,50,000
Total		1,50,000

NOTES TO ACCOUNTS
Note No	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	7,500 equity Shares of Rs.100 each	7,50,000
	2,500 9% Preference Shares of Rs.100 each	2,50,000	10,00,000
	Issued Share Capital
	1,000 Equity shares of 100 each	1,00,000
	500 9 % Preference Shares of 100 each	50,000	1,50,000
	Subscribed Called-up and Paid up Share Capital
	1,000 Equity Shares of Rs.100 each	1,00,000
	500 9% Preference Shares of Rs.100 each	50,000	1,50,000

2.	Cash and Cash Equivalents
	Bank		1,50,000

Issued 1,00,000 equity shares of Rs.10 each at a premium of Rs.5 Applied shares: 1,00,000
Books of Shiva Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c	Dr.		15,00,000
	-------- To Equity Share Application and Allotment A/c				15,00,000
	(Being share application and allotment money received for 1,00,000 Shares at Rs.15 each including 5 premium)

	Equity Share Application and Allotment A/c	Dr.		15,00,000
	-------- To Equity Share Capital A/c				10,00,000
	-------- To Securities Premium A/c				5,00,000
	(Being application and allotment money of 1,00,000 shares transferred to equity Share capital account at Rs.10 each and securities premium at Rs.5 each)

Issued 10,000 shares of Rs.25 each at premium of Rs.5 Applied 10,000 shares Payable as :

Total (25 + 5)

Rs.30

Cash Book
Dr.					Cr.
Date	Particulars	Bank Rs.	Date	Particulars	Bank Rs.
				By Balance c/d	2,97,000
	To Share Application A/c	50,000
	To Share Allotment A/c	1,00,000
	To Share First Call A/c	50,000
	To Share Second Call A/c	49,000
	To Share Final Call A/c	48,000
		2,97,000			2,97,000

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Share Application A/c	Dr.		50,000
	-------- To Share Capital A/c				50,000
	(Being application money of 10,000 shares of Rs.5 each transferred to Share Capital)

	Share Allotment A/c	Dr.		1,00,000
	-------- To Share Capital A/c				50,000
	-------- To Securities Premium A/c				50,000
	(Being share allotment of 10,000 shares transferred to share capital at Rs.5 each and securities premium at Rs.5 each)

	Share First Call A/c	Dr.		50,000
	-------- To Share Capital A/c				50,000
	(Being first call due on 10,000 shares at Rs.5 each)

	Share Second Call A/c	Dr.		50,000
	-------- To Share Capital A/c				50,000
	(Being second call due on 10,000 shares at Rs.5 each)

	Calls-in-Arrears A/c	Dr.		1,000
	-------- To Share Second Call A/c				1,000
	(Being second call outstanding on 200 shares at Rs.5 each

	Share Final Call A/c	Dr.		50,000
	-------- To Share Capital A/c				50,000
	(Being final Call due on 10,000 shares of Rs.5 per shares

	Calls-in-Arrears A/c	Dr.		2,000
	-------- To Shares Final Call A/c				2,000
	(Being final call outstanding on 400 shares at Rs.5 each)

Share Application Account
Dr.					Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.
	To Share Capital A/c	50,000		By Bank A/c	50,000



		50,000			50,000

Share Allotment Account
Dr.					Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.
				By Bank A/c	1,00,000
	To Share Capital A/c	50,000
	To Securities Premium A/c	50,000

		1,00,000			1,00,000

Share First Call Account
Dr.					Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.
	To Share Capital A/c	50,000		By Bank A/c	50,000



		50,000			50,000

Share Second Call Account
Dr.					Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.
	To Share Capital A/c	50,000		By Bank A/c	49,000
				By Calls - in - Arrears A/c	1,000


		50,000			50,000

Share Final Call Account
Dr.					Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.
	To Share Capital A/C	50,000		By Bank A/c	48,000
				By Calls - in - Arrears A/c	2,000


		50,000			50,000

Calls in Arrears Account
Dr.					Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.
	To Share Second Call A/C	1,000		By Balance c/d	3,000
	To Share Final Call A/c	2,000


		3,000			3,000

Share Capital Account
Dr.					Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.
	To Balance c/d	2,50,000		By Share Application A/c	50,000
				By Share Allotment A/c	50,000
				By Share First Call A/c	50,000
				By Share Second Call A/c	50,000
				By Share Final Call A/c	50,000



		2,50,000			2,50,000

Securities Premium Account
Dr.					Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.
	To Balance c/d	50,000		By Share Allotment A/c	50,000




		50,000			50,000

Balance Sheet
Particulars			Note No	Rs.
I. Equity and Liabilities
	1. Shareholder's Funds
		a. Share Capital	1	2,47,000
		b. Reserve and Surplus	2	50,000
	2. Non - Current Liabilities
	3. Current Liabilities
Total				2,97,000

II. Assets
	1.Non - Current Assets
	2. Current Assets
		a. Cash and Cash Equivalents	3	2,97,000
Total				2,97,000

NOTES TO ACCOUNTS
Note No	Particulars			Rs.
1.	Share Capital
	Authorised Share Capital
	Shares of Rs.25 each
	Issued Share Capital
	10,000 shares of Rs.25 each			2,50,000
	Subscribed Called-up and Paid up Share Capital
	10,000 shares of Rs.25 each		2,50,000
		Less : Calls-in-Arrears	(3,000)	2,47,000
2.	Reserve and Surplus
		Securities Premium		50,000

3.	Cash and Cash Equivalents
	Cash at Bank			2,97,000

Authorised Capital 20,000 shares of Rs.10 each Issued Capital 2,000 shares Applied 1,800 shares Payable as :

Total (10 + 2)

Rs.12

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c	Dr.		5,400
	-------- To Share Application A/c				5,400
	(Being application money received for 1,800 shares at Rs.3 per shares)

	Share Application A/c	Dr.		5,400
	-------- To Share Capital A/c				3,600
	-------- To Securities Premium A/c				1,800
	(Being application money of 1,800 share transferred to Share Capital at Rs.2 per share and securities premium Rs.1 per Share)

	Share Allotment A/c	Dr.		7,200
	-------- To share Capital A/c				5,400
	-------- To Securities Premium A/c				1,800
	(Being share allotment due on 1,800 shares at Rs.4 per share including 1 securities premium

	Bank A/c	Dr.		7,200
	-------- To Share Allotment A/c				7,200
	(Being share allotment money received)

	Share First Call A/c	Dr.		3,600
	-------- To share Capital A/c				3,600
	(Being share first call due on 1,800 shares at Rs.2 per shares)

	Bank A/c	Dr.		3,600
	-------- To Share First Call A/c				3,600
	(Being share first call money received)

	Share final Call A/c	Dr.		5,400
	-------- To Share Capital A/c				5,400
	(Being share final call due on 1,800 shares at Rs.3 per share)

	Bank A/c	Dr.		5,400
	-------- To Share Final Call A/c				5,400
	(Being share final call money received)

Balance Sheet
of Bharat Ltd.
Particulars			Note No	Rs.
I. Equity and Liabilities
	1. Shareholders' Funds
		a. Share Capital	1	18,000
		b. Reserve and Surplus	2	3,600
	2. Non-Current Liabilities
	3. Current Liabilities
Total				21,600

II. Assets
	1.Non-Current Assets
	2. Current Assets
		a. Cash and Cash Equivalents	3	21,600
Total				21,600

NOTES TO ACCOUNTS
Note No	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	20,000 Shares of Rs.10 each		2,00,000
	Issued Share Capital
	2,000 shares of Rs.10 each		20,000
	Subscribed Called-up and Paid up Share Capital
	1,800 shares of Rs.10 each		18,000

2.	Reserve and Surplus
		Securities Premium	3,600

3.	Cash and Cash Equivalents
	Cash at Bank		21,600

Balance Sheet
Suhani Ltd.
Particulars			Note No	Amount Rs.
I. Equity and Liabilities
	1. Shareholders' Funds
		a. Share Capital	1	21,00,000
		b. Reserve and Surplus	2	1,40,000
	2. Non - Current Liabilities
	3. Current Liabilities
Total				22,40,000

II. Assets
	1.Non - Current Assets
	2. Current Assets
		a. Cash and Cash Equivalents	3	22,40,000
Total				22,40,000

NOTES TO ACCOUNTS
Note No	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	30,000 shares of Rs.150 each		45,00,000
	Issued Share Capital
	15,000 shares of Rs.150 each		22,50,000
	Subscribed Called-up and Paid up Share Capital
	14,000 shares of Rs.150 each		21,00,000

2.	Reserve and Surplus
		Securities Premium	1,40,000

3.	Cash and Cash Equivalents
	Cash at Bank		22,40,000

In this scenario, applications have been invited for 75,000 equity shares. The amount that has actually been received against application money is Rs 27,00,000 where per share amount is Rs 30.

Therefore,

Number of Application received = 27,00,000 ÷ 30 = 90,000.

Thus, the issue has been over-subscribed to the extent of 15,000 shares. Such subscription is called as Over-Subscription. The company can now go for any of the following alternatives.

i. Reject Excessive 15,000 applications

ii. Partial Allotment or Pro-rata allotment where shares are allotted to all in the ratio of 75:90 or 5 shares for every 6 applied.

iii. Combination of (i) and (ii): where some applications are rejected and remaining are issued on pro-rata basis.

Issued Capital (Rs.10 each) = 10,000 Shares

Applied = 12,000 shares

Over-subscribed = 2,000 shares

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c	Dr.		1,20,000
	-------- To Share Application A/c				1,20,000
	(Being share Application received for 12,000 shares at Rs.10 each

	Share Application A/c	Dr.		1,20,000
	-------- To Share Capital A/c				1,00,000
	-------- To Bank A/c				20,000
	(Being application of 10,000 Shares Rs.10 each transferred to share Capital and of Rs.2,000 Shares returned)

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c (60,000 × 3)	Dr.		1,80,000
	------ To Share Application A/c (60,000 × 3)				1,80,000
	(Being received application money on Rs.60,000 shares)

	Share Application A/c (60,000 × 3)	Dr.		1,80,000
	-------- To Share Capital A/c (50,000 × Rs.3)				1,50,000
	-------- To Bank A/c (10,000 × Rs.3)				30,000
	(Being transfer of application money to Share Capital)

	Share Allotment A/c (50,000 × Rs.4)	Dr.		2,00,000
	-------- To Share Capital A/c (50,000 × Rs.4)				2,00,000
	(Being allotment due on 50,000 shares)

	Bank A/c (50,000 × Rs.4)	Dr.		2,00,000
	-------- To Share Allotment A/c (50,000 × Rs.4)				2,00,000
	(Being allotment received)

	Share First and Final Call A/c (50,000 × Rs.3)	Dr.		1,50,000
	-------- To Share Capital A/c (50,000 × Rs.3)				1,50,000
	(Being call money due on 50,000 shares)

	Bank A/c (49,500×3)	Dr.		1,48,500
	-------- To Share First and Final A/c (49,500×3)				1,48,500
	(Being received call money on 49,500 shares)

Issued Capital (Rs.10 each) = 20,000 Shares

Applied = 30,000 shares

Over-subscribed = 10,000 shares

Total

Rs.8

Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.

	Share Application A/c	Dr.		75,000
	--------To Share Capital A/c				60,000
	--------To Share Allotment A/c				15,000
	(Being share application of 20,000 shares at Rs. 3 each transferred to Share Capital Account and excess money Rs. 15,000 transferred to allotment)

	Share Allotment A/c	Dr.		1,00,000
	--------To Share Capital A/c				1,00,000
	(Being share allotment due on 20,000 shares at Rs. 5 each)

Balance Sheet of Arti Ltd.

Particulars	Note No.	Rs.
I. Equity and Liabilities
----1. Shareholder's Funds
------a. Share Capital	1	1,60,000
----2. Non-Current Liabilities
----3. Current Liabilities
Total		1,60,000
II. Assets
----1. Non-Current Assets
----2. Current Assets
------a. Cash and Cash Equivalents	2	1,60,000
Total		1,60,000

Note No	Particulars	Rs.
1.	Share Capital
	Authorised Share Capital
	shares of Rs.10 each	NIL
	Issued Share Capital
	20,000 equity shares of Rs.10 each	2,00,000
	Subscribed, Called-up and Paid-up Share Capital
	20,000 equity Share of Rs.10 each, on which Rs.8 called-up and paid-up	1,60,000

2.	Cash and Cash Equivalents
	Cash at Bank	1,60,000

Books of Eastern Company Limited Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Application A/c	Dr.		1,80,000
	---------To Share Capital A/c				1,50,000
	---------To Share Allotment A/c				30,000
	(Being Share Application money for 50,000 shares transferred to Share Capital Account and the excess money transferred to Share Allotment Account)

	Share Allotment A/c	Dr.		2,50,000
	---------To Share Capital A/c				1,00,000
	---------To Share Premium A/c				1,50,000
	(Being allotment money due on 50,000 shares @ Rs.5 per share including Rs.3 Security premium)

	Share First Call A/c	Dr.		1,50,000
	---------To Share Capital A/c				1,50,000
	(Being first call due on 50,000 shares @ Rs.3 per share)

Cash Book (Bank Column)
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
	To Share Application A/c		1,80,000
	To Share Allotment A/c		2,20,000
	To Share First Call A/c		1,49,700		By Balance c/d		5,49,700

			5,49,700				5,49,700

Eastern Company Limited
Balance Sheet
Particulars	Note No.	Rs.
I. Equity and Liabilities
1. Shareholders' Fund
a. Share capital	1	3,99,700
b. Reserve and Surplus	2	1,50,000
2. Non - Current Liabilities
3. Current Liabilities
Total		5,49,700
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	5,49,700
Total		5,49,700

NOTES TO ACCOUNT

Note No.	Particulars		Rs.
1	Share Capital
	Authorized Share Capital
	-----1,00,000-Share of Rs.10 each		10,00,000
	Issued share Capital
	-------50,000 share of Rs.10 each		5,00,000
	Subscribed, Called-up and paid-up Share Capital
	-------50,000 Share of Rs.10 each, Rs. 8 Called-up	4,00,000
	-------Less : Calls-in-Arrears	300	3,99,700

2	Reserve and Surplus
	-------Securities Premium		1,50,000

3	Cash and Cash Equivalents
	-------Cash at Bank		5,49,700

Shares Payable as :

Total Called up 120

Books of Varun Ltd. Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.

	Bank A/c	Dr.		2,30,000
	--------To Share Application A/c				2,30,000
	(Being share application money received for 23,000 shares at Rs.10 each)

	Share Application A/c	Dr.		2,30,000
	--------To Share Capital A/c				1,00,000
	--------To Share Allotment A/c				50,000
	--------To Bank A/c				80,000
	(Being share application of 10,000 shares transferred to Share Capital Rs.50,000 adjusted on allotment and remaining amount returned )

	Share Allotment A/c	Dr.		5,00,000
	--------To Share Capital A/c				4,00,000
	--------To Securities Premium A/c				1,00,000
	(Being share allotment due on 10,000 shares at Rs.50 each including Rs.10 premium)

	Bank A/c	Dr.		4,50,000
	-------- To Share Allotment A/c				4,50,000
	(Being share allotment money received)

	Share First and Final Call A/c	Dr.		6,00,000
	--------To Share Capital A/c				5,00,000
	--------To Securities Premium A/c				1,00,000
	(Being first and final call due on 10,000 shares at Rs.60 each including Rs.10 premium)

	Bank A/c	Dr.		6,00,000
	--------To Share First and Final Call A/c				6,00,000
	(Being share first and final call money received)

Balance Sheet of
Varun Ltd.
Particulars	Note No.	Rs.
I. Equity and Liabilities
----1. Shareholder's Funds
------a. Share Capital	1	10,00,000
------b. Reserve and Surplus	2	2,00,000
----2. Non-Current Liabilities
Total		12,00,000
II. Assets
----1. Non-Current Assets
----2. Current Assets
------a. Cash and Cash Equivalents	3	12,00,000
Total		12,00,000

Note No	Particulars	Rs.
1.	Share Capital
	Authorised Share Capital
	shares of Rs.100 each	NIL
	Issued Share Capital
	10,000 shares of Rs.100 each	10,00,000
	Subscribed, Called-up and Paid up Share Capital
	10,000 share of Rs.100 each	10,00,000

2.	Reserve and Surplus
	Securities Premium	2,00,000

3.	Cash and Cash Equivalents
	Cash at Bank	12,00,000

Working Notes:
Applied Shares	Issued Shares	Money received on Application @ Rs.10 each	Money transferred to Share Capital @ Rs. 10 each	Excess	Allotment due @ Rs. 50 each	Excess money adjusted on Allotment	Excess money after Allotment
12,000	1,000	1,20,000	10,000	1,10,000	50,000	50,000	60,000 (return)
2,000		20,000		20,000 (return)
9,000	9,000	90,000	90,000		4,50,000
23,000	10,000	2,30,000	1,00,000		5,00,000	50,000	60,000

Less : Excess application money adjusted on allotment	(50,000)
4,50,000

Issued Shares		60,000
	Less: Applied Shares	(92,000)
Over-subscribed Shares		(32,000)

Payable as :
Total (10+2)	Rs.12

Applied	Allotted	Application Money Received @ Rs.3	Money adjusted on Application @ Rs. 3	Excess	Allotment due @ Rs.5	Excess money adjusted on Allotment @ Rs.5
40,000	30,000	1,20,000	90,000	30,000	1,50,000	30,000
50,000	30,000	1,50,000	90,000	60,000	1,50,000	60,000
2,000		6,000		6,000 (Bank)
92,000	60,000	2,76,000	1,80,000		3,00,000	90,000

		Rs.
Money Received on Application (800 × Rs.3)	=	2,400
Less : Application money adjusted to Share Capital	=	(1,800)
Excess Money on Application	=	600

Allotment due on 600 Shares (600 × Rs.5)	=	3,000
Less : Adjustment of excess money on application	=	(600)
Calls - in - Arrears by Mohan		2,400

		Rs.
Money received on Application (1,000 × Rs.3)	=	3,000
Less: Application money adjusted to Share Capital (600 × Rs.3)	=	(1,800)
Excess money on application	=	1,200

Allotment due on 600 Shares (600 × Rs.5)	=	3,000
Less : Excess Application money adjusted on Allotment		(1,200)
Calls-in-Arrears by Sohan		1,800

Allotment due on 60,000 shares (60,000 × Rs.5)	=	3,00,000
Less : Excess Application money adjusted on Allotment	=	(90,000)
		2,10,000
Less : Calls - in - Arrears by Mohan	=	(2,400)
Less : Calls - in Arrears by Sohan	=	(1,800)
Money Received on Allotment	=	2,05,800

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c (1,00,000 × Rs.3)	Dr.		3,00,000
	-------- To Share Application A/c (1,00,000 × Rs.3)				3,00,000
	(Being share application money on 1,00,000 shares)

	Share Application A/c (1,00,000 × Rs.3)	Dr.		3,00,000
	-------- To Share Capital A/c (50,000 × Rs.3)				1,50,000
	-------- To Share Allotment A/c (50,000 × Rs.3)				1,50,000
	(Being transfer of application money to Share Capital)

	Share Allotment A/c (50,000 × Rs.4)	Dr.		2,00,000
	-------- To Share Capital A/c (50,000 × Rs.4)				2,00,000
	(Being share allotment due on 50,000 shares Rs.4 each)


	Bank A/c	Dr.		49,000
	-------- To Share Allotment A/c (49,000 × Rs.1)				49,000
	(Being remaining allotment money received on 49,000 shares)

Excess money received on application (1,000 × Rs.3) = Rs.3,000

Money due on allotment from Anupam (1,000 × Rs.4) = Rs.4,000

Therefore, Rs.1,000 is still due from Anupam and has not been received.

Authorised Capital 1,00,000 shares of Rs.10 each

Issued Capital 42,000 shares of Rs.10 each

40,000 shares applied and are payable as :

Total

Rs.10

Kalyan Cotton Mills Ltd
Cash Book
Dr.					Cr.
Date	Particulars	Bank Rs.	Date	Particulars	Bank Rs.
2011			2011
1^st Feb	To Share Application A/c	40,000	30^th June	By Balance c/d	3,98,100
28^th Feb	To Share Allotment A/c	80,000
1^st May	To Share First Call A/c	1,19,700
30^th June	To Share Final Call A/c	1,58,400
		3,98,100			3,98,100

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
2011
1^st Feb	Share Application A/c	Dr.		40,000
	-------- To Share Capital A/c				40,000
	(Share application of 40,000 shares at Rs.1 each transferred to share capital account)

1^st Feb	Share Allotment A/c	Dr.		80,000
	-------- To Share Capital A/c				80,000
	(Being share allotment due on 40,000 shares at Rs.2 each)

1^st Mar	Share First Call A/c	Dr.		1,20,000
	-------- To Share Capital A/c				1,20,000
	(Being share first call due on 40,000 shares Rs.3 each)

30^th May	Calls-in-Arrears A/c	Dr.		300
	-------- To Share First Call A/c				300
	(Being share first call outstanding on 100 Shares Rs.3 each)

1^st June	Share Final Call A/c	Dr.		1,60,000
	-------- To Share Capital A/c				1,60,000
	(Being share first call due on 40,000 shares of Rs.4 each)

30^th June	Calls - in Arrears A/c	Dr.		1,600
	-------- To share Final Call A/c				1,600
	(Being share final Call outstanding on 400 shares at Rs.4 each)

Kalyan Cotton Mills Ltd
Balance Sheet
Particulars	Note No	Rs.
I. Equity and Liabilities
----1. Shareholders' Funds
--------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
------- Cash and Cash Equivalents	2	3,98,100
Total		3,98,100

NOTES TO ACCOUNTS
Note No	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	1,00,000 Shares of Rs.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

Books of Ghosh Ltd
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
2016
1^st Jan	Share Second and Final Call A/c	Dr.		1,00,000
	-------- To Equity Share Capital A/c				1,00,000
	(Being share second and final call due on 50,000 shares at Rs.2 per share)

15^th Jan	Bank A/c	Dr.		99,800
	Calls-in-Arrears A/c	Dr.		200
	-------- To Share Second and Final Call A/c				1,00,000
	(Being share second and final call received only from 49,900 shares Rs.2 each)

Payable as :
Total (7+2)	Rs.9

Books of Star Ltd.
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c	Dr.		40,000
	-------- To Share Application A/c				40,000
	(Being share application money received for 20,000 shares at Rs.2 per shares)

	Share Application A/c	Dr.		40,000
	-------- To Share Capital A/c				40,000
	(Being share application of 20,000 shares at Rs.2 per share transferred to share capital account)

	Share Allotment A/c	Dr.		1,00,000
	-------- To Share Capital A/c				60,000
	-------- To Securities Premium A/c				40,000
	(Being allotment due on 20,000 shares at Rs.5 per share including 2 securities premium

	Bank A/c	Dr.		1,00,000
	-------- To Share Allotment A/c				1,00,000
	(Being share allotment received on 20,000 shares at Rs.5 per share)

	Share First Call A/c	Dr.		40,000
	-------- To share Capital A/c				40,000
	(Being first and final call due on 20,000 shares at Rs.2 per share)

	Bank A/c	Dr.		38,900
	Calls-in-Arrears A/c	Dr.		2,000
	-------- To Share First Call A/c				40,000
	-------- To Calls-in-Advance A/c				900
	(Being share first call received on 39,000 shares at Rs.2 each 300 shares paid calls-in-arrears Rs.3 per share and 1,000 shares failed to pay first call money)

Star Ltd.
Balance Sheet
Particulars			Note No	Rs.
I. Equity and Liabilities
	1. Shareholder's Funds
		a. Share Capital	1	1,38,000
		b. Reserve and Surplus	2	40,000
	2. Non-Current Liabilities
	3. Current Liabilities
		Other Current Liabilities	3	900
Total				1,78,900

II. Assets
	1.Non-Current Assets
	2. Current Assets
		Cash and Cash Equivalents	4	1,78,900
Total				1,78,900

NOTES TO ACCOUNTS
Note No	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	50,000 shares of Rs.10 each		5,00,000
	Issued Share Capital
	20,000 shares of Rs.10 each		2,00,000
	Subscribed Called-up and Paid up Share Capital
	20,000 shares of Rs.10 each 7 Called up and Paid Up	1,40,000
	Less : Calls-in-Arrears	(2,000)	1,38,000

2.	Reserve and Surplus
	Securities Premium		40,000

3.	Other Current Liabilities
	Calls-in-Advance		900

4.	Cash and Cash Equivalents
	Cash at Bank		1,78,900

Issued Capital 5,000 Shares of 10 each 5 called up

On Application = (8,000) Rs.2 each

On Allotment = (8,000 - 250 = 7,750) Rs.1 each

On First Call = (8,000 - 250 - 500 = 7,250) Rs.1 each

On Second Call = (8,000 - 250 - 500 - 1,250 = 6,000) Rs.1 each

Total Called-up = Rs.5 Per Share

Books of Green Ltd.
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c	Dr.		16,000
	-------- To Share Application A/c				16,000
	(Being share application money received for 8,000 shares at Rs.2 per shares)

	Share Application A/c	Dr.		16,000
	-------- To Share Capital A/c				16,000
	(Being share application of 8,000 shares at Rs.2 per share transferred to share capital account)

	Share Allotment A/c	Dr.		8,000
	-------- To Share Capital A/c				8,000
	(Being allotment due on 8,000 shares at Rs.1 each

	Bank A/c	Dr.		7,750
	Calls-in-Arrears A/c	Dr.		250
	-------- To Share Allotment A/c				8,000
	(Being share allotment received on 7,750 shares and 250 shares failed to pay it)

	Share First Call A/c	Dr.		8,000
	-------- To Share Capital A/c				8,000
	(Being first call due on 8,000 shares at Rs.1 each)

	Bank A/c	Dr.		7,250
	Calls-in-Arrears A/c	Dr.		750
	-------- To Share First Call A/c				8,000
	(Being share first call received money received on 7,250 shares and 750 shares failed to pay it)

	Share Second Call A/c	Dr.		8,000
	-------- To Share Capital A/c				8,000
	(Being share second call due on 8,000 shares at Rs.1 each)

	Bank A/c	Dr.		6,000
	Calls-in-Arrears A/c	Dr.		2,000
	-------- To Share Second Call A/c				8,000
	(Being share second call money received on 6,000 shares and 2000 shares failed to pay it)

Green Ltd.
Balance Sheet
Particulars			Note No	Rs.
I. Equity and Liabilities
	1. Shareholder's Funds
		Share Capital	1	37,000
	2. Non-Current Liabilities
	3. Current Liabilities
Total				37,000

II. Assets
	1.Non-Current Assets
	2. Current Assets
		Cash and Cash Equivalents	2	37,000
Total				37,000

NOTES TO ACCOUNTS
Note No	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	shares of 10 each
	Issued Share Capital
	8,000 shares of Rs.10 each		80,000
	Subscribed Called-up and Paid up Share Capital
	8,000 shares of Rs.10 each Rs.5 Called up and Paid Up	40,000
	*Less* : Calls-in-Arrears	(3,000)	37,000

2.	Cash and Cash Equivalents
	Cash at Bank		37,000

Books of Bharat Ltd
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
2006
1^st Mar	Equity Share First Call A/c	Dr.		2,00,000
	-------- To Equity Share Capital A/c				2,00,000
	(Being shares first call due on 1,00,000 shares at Rs.2 per share)

1^st Mar	Bank A/c	Dr.		2,02,400
	-------- To Equity Share First Call A/c				2,00,000
	-------- To Calls-in-Advance A/c				2,400
	(Being share first call received with call-in-advance of 800 shares at Rs.3 per share)


Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Assets A/c	Dr.		25,000
	------- To X Ltd				25,000
	(Being assets bought from X Ltd)

	X Ltd	Dr.		25,000
	------- To Share Capital A/c				20,000
	------- To Securities Premium A/c				5,000
	(Being 2,000 shares of Rs.10 each issued to X Ltd)

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Plant and Machinery A/c	Dr.		1,00,000
	------- To vendor A/c				1,00,000
	(Being machinery purchased)

	Vendor A/c	Dr.		1,00,000
	-------- To Equity Share Capital A/c (800 × Rs.100)				80,000
	-------- To Securities Premium A/c (800 × Rs.25)				20,000
	(Being shares issued to vendor at a premium of Rs.25 per share)

Books of Rajan Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Assets A/c	Dr.		5,00,000
	-------- To Geeta and Co. A/c				5,00,000
	(Being assets purchased from Geeta and Co.)

	Geeta and Co. A/c	Dr.		1,00,000
	------- To Bank A/c				1,00,000
	(Being payment made to Geeta and Co.)

	Geeta and Co.A/c	Dr.		4,00,000
	-------- To Equity Share Capital A/c				3,20,000
	-------- To Securities Premium A/c				80,000
	(Being 32,000 equity Shares of Rs.10 issued at 25 % premium)

Books of Z Ltd
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Assets A/c	Dr.		2,20,000
	-------- To C.D. Ltd A/c				2,20,000
	(Being assets purchased from C.D Ltd)

	C.D. Ltd A/c	Dr.		2,20,000
	------- To 9% Preference Share Capital A/c				2,00,000
	------- To Securities Premium A/c				20,000
	(Being 2,000 9% preference shares of 100 each issued at Rs.10 % premium to C.D Ltd)

Books of Goodluck Ltd.
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Machinery A/c	Dr.		10,00,000
	-------- To Fail Deals Ltd A/c				10,00,000
	(Being machinery purchased from Fair Deals Ltd)

	Fair Deals Ltd A/c	Dr.		10,00,000
	------- To Equity Share Capital A/c				8,00,000
	------- To Securities Premium A/c				2,00,000
	(Being 80,000 equity shares of Rs.10 each issued at 25% premium)

Books of Jain Ltd
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Machinery A/c	Dr.		10,00,000
	-------- To Ayer's Ltd A/c				10,00,000
	(Being machinery purchased from Ayer Ltd)

	Ayer's Ltd A/c	Dr.		5,00,000
	-------- To Bank A/c				5,00,000
	(Being payment made to Ayer Ltd)

	Ayer's Ltd A/c	Dr.		5,00,000
	-------- To Equity Share Capital A/c				4,00,000
	-------- To Securities Premium A/c				1,00,000
	(Being 4,000 equity shares of Rs.100 each issued at 25% premium)

Working Notes:

Journal
In the books of Sona Ltd
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Machinery A/c	Dr.		17,00,000
	-------- To Mona Ltd A/c				17,00,000
	(Being machinery purchased on credit from Sona Ltd)

	Mona Ltd A/c	Dr.		3,40,000
	-------- To Bank A/c				3,40,000
	(Being 20 % amount paid through cheque)

	Mona Ltd A/c (17,00,000 - 3,40,000)	Dr.		13,60,000
	-------- To Equity Share Capital A/c				10,88,000
	-------- To Securities Premium A/c				2,72,000
	(Being issued 10,880 shares of Rs.100 each to Mona Ltd at 25 % premium)

Working Notes:

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Incorporation Expenses A/c	Dr.		5,00,000
	-------- To Share Capital A/c (50,000 × Rs.10)				5,00,000
	(Being shares issued to promoters

	Underwriting Commission A/c	Dr.		20,000
	-------- To Underwriters A/c				20,000
	(Being underwriting commission due)

	Underwriters A/c	Dr.		20,000
	-------- To Share Capital A/c (2,000 × Rs.10)				20,000
	(Being shares issued to underwriters)

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Goodwill A/c	Dr.		4,00,000
	Plant A/c	Dr.		7,00,000
	Stock-in-Trade A/c	Dr.		9,00,000
	Land and Building A/c	Dr.		12,00,000
	-------- To Sundry Creditors A/c				2,00,000
	-------- To Sharma and Co. A/c				30,00,000
	(Being asset purchased and liabilities accepted from Sharma and Co.)

	Sharma and Co. A/c	Dr.		30,00,000
	-------- To Share Capital A/c				30,00,000
	(Being 30,000 shares of Rs.100 each issued to Sharma and Co.)

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Plant and Machinery A/c	Dr.		4,00,000
	Building A/c	Dr.		4,00,000
	Sundry Debtors A/c	Dr.		3,00,000
	Stock A/c	Dr.		4,00,000
	Cash A/c	Dr.		3,00,000
	-------- To Sundry Creditors A/c				2,00,000
	-------- To M/s Rai Brothers A/c				15,00,000
	-------- To Capital Reserve A/c				1,00,000
	(Being business of M/s Rai brothers took over)

	M/s Rai Brothers A/c	Dr.		12,00,000
	-------- To Share Capital A/c				12,00,000
	(Being shares issued to M/s Rai brothers)

	M/S Rai Brothers A/c	Dr.		3,00,000
	-------- To Bank A/c				3,00,000
	(Being payment made to M/s Rai brothers through cheque)

Sandesh Ltd Journal
Sr. No.	Particulars		L.F.	Dr. Rs.	Cr. Rs.

a.	Sundry Assets A/c	Dr.		7,00,000
	--------To Sundry Liabilities A/c				2,00,000
	--------To Sanchar Ltd.				4,59,500
	--------To Capital Reserve A/c				40,500
	(Being purchase of assets and liabilities of Sanchar Ltd.)

b.	Sanchar Ltd.	Dr.		4,59,500
	--------To Equity Share Capital A/c				4,10,000
	--------To Security Premium A/c				41,000
	--------To Bank A/c				8,500
	(Being 41,000 equity shares issued of Rs. 10 each at a premium of Rs. 1 per share and Rs. 8,500 paid by bank draft)

Working Notes:

1. Calculation of No. of Equity Shares

Payable as :
Total (Called-up)	Rs.100

Books of Better Prospects Ltd.
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Land A/c	Dr.		1,00,000
	-------- To vendor A/c				1,00,000
	(Being land purchased from the vendor)

	Vendor A/c	Dr.		1,00,000
	-------- To Equity Share Capital A/c				1,00,000
	(Being 1,000 equity of Rs.100 each issued to Vendor)

	Bank A/c	Dr.		1,20,000
	------- To Equity Share Application A/c				1,20,000
	(Being share application money received for 4,000 equity shares at Rs.30 per share)

	Equity Share Application A/c	Dr.		1,20,000
	-------- To Equity Share Capital A/c				1,20,000
	(Being share application money on 4,000 shares transferred to equity share capital account)

	Equity Share Allotment A/c	Dr.		1,20,000
	-------- To Equity Share Capital A/c				1,20,000
	(Being share allotment due on 4,000 equity shares of Rs.30 each)

	Bank A/c	Dr.		1,20,000
	-------- To Share Allotment A/c				1,20,000
	(Being share allotment received for 4,000 shares at Rs.30 per share)

	Share First and Final Call A/c	Dr.		1,60,000
	-------- To Equity Share Capital A/c				1,60,000
	(Being first and final call due on 4,000 equity shares at Rs.40 per share)

	Bank A/c	Dr.		1,52,000
	Calls-in-Arrears A/c	Dr.		8,000
	-------- To Share First and Final Call A/c				1,60,000
	(Being first and final call received from 3,800 shares and 200 share failed to pay it)

Better Prospect Ltd.
Balance Sheet
Particulars				Note No	Rs.
I. Equity and Liabilities
	1. Shareholder's Funds
		Share Capital		1	4,92,000
	2. Non-Current Liabilities
	3. Current Liabilities
Total					4,92,000

II. Assets
	1.Non-Current Assets
		a. Fixed Assets
			i. Tangible Assets	2	1,00,000
	2. Current Assets
		Cash and Cash Equivalents		3	3,92,000
Total					4,92,000

NOTES TO ACCOUNTS
Note No	Particulars			Rs.
1.	Share Capital
	Authorised Share Capital
	shares of Rs.100 each
	Issued Share Capital
	5,000 shares of 100 each			5,00,000
	Subscribed Called-up and Paid up Share Capital
	1,000 shares of 100 each Rs.5 (for consideration other than Cash)		1,00,000
	4,000 shares of Rs.100 each		4,00,000
		Less : Calls-in-Arrears	(8,000)	4,92,000

2.	Tangible Assets
	Land			1,00,000

2.	Cash and Cash Equivalents
	Cash at Bank			3,92,000

In the Books of Alankrit Ltd. Journal
Case No.	Particulars		L.F.	Debit Rs.	Credit Rs.

(I)	Machinery A/c	Dr.		10,00,000
	-------- To Grand Iron Works Ltd. A/c				10,00,000
	(Being machinery purchased)

(II)	Grand Iron Works Ltd. A/c	Dr.		10,00,000
	-------- To Share Capital A/c				5,00,000
	-------- To Securities Premium Reserve A/c				1,00,000
	-------- To Bills Payable A/c				3,00,000
	-------- To Bank A/c				1,00,000
	(Being shares issues, bills accepted and post-dated cheque issued)

In the Books of Grand Iron Works Ltd. Journal
Case No.	Particulars		L.F.	Debit Rs.	Credit Rs.

(I)	Alankrit's A/c	Dr.		10,00,000
	-------- To Sales A/c				10,00,000
	(Being machinery sold)

(II)	Investments A/c	Dr.		6,00,000
	Bills Receivable A/c			3,00,000
	Cheque-in-Hand A/c			1,00,000
	-------- To Alankrit Ltd. A/c				10,00,000
	(Being shares, acceptance and post dated cheque received)

Amount is payable as :
On Application	Rs.Total (Called-up)	Rs.10

Journal
Case No.	Particulars		L.F.	Debit Rs.	Credit Rs.

(I)	Share Capital A/c (100 × Rs.5)	Dr.		500
	-------- To Share Forfeiture A/c				200
	-------- To Share Allotment A/c				300
	(Being 100 shares of Rs.10 each , Rs.5 called up, forfeited for the non-payment of allotment)

(II)	Share Capital A/c (100 × Rs.8)	Dr.		800
	-------- To Share Forfeited A/c				200
	-------- To Share Allotment A/c				300
	-------- To Share First Call A/c				300
	(Being 100 shares of Rs.10 each, Rs.8 called-up forfeited for non-payment of allotment and first-call)

(III)	Share Capital A/c	Dr.		1,000
	-------- To Share Forfeited A/c				500
	-------- To Share First Call A/c				300
	-------- To Share Final Call A/c				200
	(Being 100 shares of Rs.10 each forfeited for the non-payment Rs.5 each)

Books of Ankit Ltd.
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

Case I	Share Capital A/c (500× Rs.6)	Dr.		3,000
	Securities Premium Reserve A/c (500× Rs.2)	Dr.		1,000
	-------- To Share Forfeiture A/c (500× Rs.3)				1,500
	-------- To Share Allotment A/c (500× Rs.5)				2,500
	(Being 500 shares forfeited for non-payment of allotment money)

Case II	Share Capital A/c (500× Rs.8)	Dr.		4,000
	Securities Premium Reserve A/c (500× Rs.2)	Dr.		1,000
	-------- To Share Forfeiture A/c (500× Rs.3)				1,500
	-------- To Share Allotment A/c (500× Rs.5)				2,500
	-------- To Share First Call A/c (500× Rs.2)				1,000
	(Being 500 shares forfeited for non-payment of allotment and first call money)

Case III	Share Capital A/c (500× Rs.8)	Dr.		4,000
	-------- To Share Forfeiture A/c (500× Rs.3)				3,000
	-------- To Share Allotment A/c				1,000
	(Being 500 shares forfeited for non-payment of first call money)

Case IV	Share Capital A/c (500× Rs.10)	Dr.		5,000
	-------- To Share Forfeiture A/c (500× Rs.6)				3,000
	-------- To Share First Call A/c (500× Rs.2)				1,000
	-------- To Share Final Call A/c (500× Rs.2)				1,000
	(Being 500 shares forfeited for non-payment of first and final call)

Authorised Capital 15,000 shares of Rs.100 each Issued Capital 5,000 shares of Rs.100 each Payable as :

Total (called-up) (100+5)

Rs.105

Books of U.P. Sugar Works Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
2004
1^st April	Bank A/c	Dr.		1,25,000
	-------- To Share Application A/c				1,25,000
	(Being share application money received for 5,000 shares at Rs.25 each)

1^st April	Share Application A/c	Dr.		1,25,000
	-------- To Share Capital A/c				1,25,000
	(Being share application money transferred to share Capital,)

1^st April	Share Allotment A/c	Dr.		1,50,000
	-------- To Share Capital A/c				1,25,000
	-------- To Securities Premium A/c				25,000
	(Being share allotment due on 5,000 shares at Rs.30 each including Rs.5 premium)

	Bank A/c	Dr.		1,50,000
	-------- To Share Allotment a/c				1,50,000
	(Being share allotment money received)

1^st July	Share First Call A/c	Dr.		1,25,000
	-------- To Share Capital A/c				1,25,000
	(Being share first and final call due on 5,000 shares at Rs.25 each)

	Bank A/c	Dr.		1,25,000
	-------- To Share First Call A/c				1,25,000
	(Being share First call money received)

1^st Oct	Share Final Call A/c	Dr.		1,25,000
	-------- To Share Capital A/c				1,25,000
	(Being share final call due on 5,000 shares at Rs.25 each)

	Bank A/c	Dr.		1,22,500
	Calls-in-Arrears a/c	Dr.		2,500
	------- To Share Final Call A/c				1,25,000
	(Being share final call Rs.25 each received for 4,900 shares and a holder of 100 share failed to pay it)

1^st Nov	Share Capital A/c (100× Rs.100)	Dr.		10,000
	-------- To Share Forfeiture A/c (100 × Rs.75)				7,500
	-------- To Calls-in-Arrears A/c (100 × Rs.25)				2,500
	(Being 100 shares forfeited for the non-payment of final call)

Issued Capital 10,000 shares of Rs.10 each

Applied Capital 10,000 Shares Rs.100 each

Payable as :

Total (called-up) (10+3)

Rs.13

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c	Dr.		50,000
	-------- To Equity Share Application A/c				50,000
	(Being share application money received for10,000 shares at Rs.5 each)

	Equity Share Application A/c	Dr.		50,000
	-------- To Equity Share Capital A/c				50,000
	(Being share application money transferred to share Capital,)

	Equity Share Allotment A/c	Dr.		50,000
	-------- To Equity Share Capital A/c				20,000
	-------- To Securities Premium A/c				30,000
	(Being share allotment due on 10,000 shares at Rs.5 each including Rs.5 premium)

	Bank A/c	Dr.		49,000
	Calls-in-Arrears A/c	Dr.		1,000
	-------- To Equity Share Allotment a/c				50,000
	(Being share allotment money received)

	Equity Share First Call and Final Call A/c	Dr.		30,000
	-------- To Equity Share Capital A/c				30,000
	(Being share first and final call due on 10,000 shares at Rs.3 each)

	Bank A/c	Dr.		29,100
	Calls-in-Arrears A/c	Dr.		900
	-------- To Equity Share First Call and Final Call A/c				30,000
	(Being share first and final call received on all shares except 300 shares)

	Equity Share Capital A/c	Dr.		2,000
	Securities Premium A/c	Dr.		600
	-------- To Share Forfeiture A/c				1,000
	-------- To Calls-in-Arrears A/c				1,600
	(Being 200 shares forfeited for the non-payment of Rs.8 per share including Rs.3 premium)

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c	Dr.		30,000
	-------- To Equity Share Application A/c				30,000
	(Being share application money received for 10,000 shares at Rs.3 each)

	Share Application A/c	Dr.		30,000
	-------- To Share Capital A/c				30,000
	(Being share application money transferred to share Capital,)

	Share Allotment A/c	Dr.		30,000
	-------- To Equity Share Capital A/c				30,000
	(Being share allotment due on 10,000 shares at Rs.3 per shares)

	Bank A/c	Dr.		30,000
	-------- To Equity Share Allotment a/c				30,000
	(Being share allotment money received)

	Equity Share First Call and Final Call A/c	Dr.		40,000
	-------- To Share Capital A/c				40,000
	(Being share first and final call due on 10,000 shares at Rs.4 each)

	Bank A/c	Dr.		39,600
	Calls-in-Arrears A/c	Dr.		400
	-------- To Share First Call and Final A/c				40,000
	(Being share first and final call of 4 per share received on 9,900 share and 100 shares failed to pay it)

	Share Capital A/c	Dr.		1,000
	-------- To Share Forfeiture A/c				600
	-------- To Calls-in-Arrears A/c				400
	(Being 100 shares of Rs.10 each forfeited for the non-payment of first and final call Rs.4 per share)

	Bank A/c	Dr.		500
	Share Forfeiture A/c	Dr.		500
	-------- To Share Capital A/c				1,000
	(Being 100 shares of Rs.10 each re-issued for the sum of 500)

	Share Forfeiture A/c	Dr.		100
	-------- To Capital Reserve A/c				100
	(Being balance in Share forfeiture account after re-issue of shares, transferred to capital reserve account)

Working Note
Share Forfeiture Account (debit)	Rs.600
Less : Share Forfeiture Account (credit)	(500)
Balance in Share Forfeiture after re-issue	Rs.100

Capital Reserve = Balance in Share Forfeiture A/c after re-issue = 100

Payable as :
Rs.75 Per

In the Books of X Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Equity Share Capital A/c	Dr.		67,500
	-------- To Share Forfeiture A/c				22,500
	-------- To Calls-in-Arrears A/c				45,000
	(Being 900 shares of Rs.100 each Rs.75 called up, forfeited for the non-payment sum of allotment Rs.30 an first call Rs.20 per share)

	Bank A/c	Dr.		81,000
	------- To Share Capital A/c				67,500
	------- To Securitas Premium A/c				13,500
	(Being 900 shares of 100 each re-issued as Rs.75 paid-up for Rs.90 each)

	Share Forfeiture A/c	Dr.		22,500
	-------- To Capital Reserve A/c				22,500
	(Being balance of share forfeiture account after re-issue, transferred to capital reserve account)

Working Note :

Share Forfeiture A/c would be credited with

Calculation of Capital Reserve
Share Forfeiture A/c	= Rs.22,500
Share Forfeiture A/c (Dr.)	= NIL
Capital Reserve	= Rs.22,500

In the Books of M Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
2015
May 01	Equity Share Capital A/c	Dr.		20,000
	-------- To Share Forfeiture A/c				15,000
	-------- To Calls-in-Arrears A/c				5,000
	(Being 2,000 shares of Rs.10 each forfeited for non- payment of final call Rs.2.5 per share)

June 10	Bank A/c	Dr.		10,800
	Share Forfeiture A/c	Dr.		7,200
	------- To Share Capital A/c				18,000
	(Being 1,800 shares of Rs.10 each re-issued at Rs.6 per share fully paid-up)

	Share Forfeiture A/c	Dr.		6,300
	-------- To Capital Reserve A/c				6,300
	(Being balance in shares forfeiture account of 1,800 re-issue, transferred to capital reserve A/c)

Working Notes :
Share Forfeiture (Cr.)	Rs.7.5
Share Forfeiture (Dr.)	Rs.4
Balance in Share Forfeiture A/c after re-issue (Per Share) (Cr.)	Rs.3,5

Calculation of Capital Reserve

=Number of Shares reissued × Balance in Share Forfeiture A/c after reissue (per share)

= 1,800 × Rs.3.5 (per share)

Capital Reserve = Rs.6,300

Books of Super Star Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c	Dr.		5,00,000
	-----To Equity Share Application and Allotment A/c				5,00,000
	(Being share application and allotment money received for 10,000 shares at Rs.50 each)

	Equity Share Application and Allotment A/c	Dr.		5,00,000
	-----To Equity Share Capital A/c				5,00,000
	(Being share application and allotment money transferred to Equity Share Capital Account)

	Equity Share First Call A/c	Dr.		2,50,000
	-----To Equity Share Capital A/c				2,50,000
	(Being share first call due on 10,000 shares of Rs.25 each)

	Bank A/c	Dr.		2,50,000
	----- To Equity Share First-Call A/c				2,50,000
	(Being first call money received)

	Equity Share Final Call A/c	Dr.		2,50,000
	-----To Equity Share Capital A/c				2,50,000
	(Being equity share final call due on 10,000 shares of Rs.25 each)

	Bank A/c	Dr.		2,40,000
	Calls-in-Arrears A/c	Dr.		10,000
	-----To Equity Share Final Call A/c				2,50,000
	(Being share final call of Rs.25 per share received on 9,600 shares and holders of 400 shares failed to pay it)

	Equity Share Capital A/c	Dr.		40,000
	-----To Share Forfeiture A/c				30,000
	----- To Calls-in-Arrears A/c				10,000
	(Being 400 Shares of 100 each forfeited for the non-payment final call Rs.25 per share)

	Bank A/c	Dr.		10,000
	Share Forfeiture A/c	Dr.		10,000
	-----To Equity Share Capital A/c				20,000
	(Being 200 shares of Rs.100 each re-issued at Rs.50 per share fully paid up

	Share Forfeiture A/c	Dr.		5,000
	----- To Capital Reserve A/c				5,000
	(Being balance in Share Forfeiture of 200 shares of after re-issue transferred to Capital Reserve)

Working Note :
Share Forfeiture (Cr.)	Rs.75
Share Forfeiture(Dr.)	Rs.50
Balance in Share Forfeiture A/c	Rs.25

Calculation of Capital Reserve

= Balance in share forfeiture A/c × No. of share re issued

= Rs.25 (Per Share) × 200

Capital Reserve = Rs.5,000

Issued Capital 20,000 shares of Rs.10 each Applied Capital 20,000 Shares Rs.100 each

Payable as :

Rs.75 Per

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c	Dr.		5,00,000
	-------- To Share Application A/c				5,00,000
	(Being share application money received for 20,000 shares at Rs.25 each)

	Equity Share Application A/c	Dr.		5,00,000
	-------- To Share Capital A/c				5,00,000
	(Being application money transferred to share capital account)

	Share Allotment A/c	Dr.		5,00,000
	-------- To Share Capital A/c				5,00,000
	(Being share allotment due on 20,000 shares at Rs.25 each)

	Bank A/c	Dr.		5,00,000
	-------- To Share Allotment A/c				5,00,000
	(Being allotment money received)

	Share First Call A/c	Dr.		5,00,000
	-------- To Share Capital A/c				5,00,000
	(Being share final call due on 20,000 shares of Rs.25 each)

	Bank A/c	Dr.		4,90,000
	Calls-in-Arrears A/c	Dr.		10,000
	-------- To Share First Call A/c				5,00,000
	(Being share First Call of Rs.25 per share received on 19,600 shares and holders of 400 shares did not pay it)

	Share Capital A/c	Dr.		30,000
	-------- To Share Forfeiture A/c				20,000
	-------- To Calls-in-Arrears A/c				10,000
	(Being 400 shares of Rs.100 each, Rs.75 called-up forfeited for the non-payment final call Rs.25 per share)

	Bank A/c	Dr.		28,000
	Share Forfeiture A/c	Dr.		2,000
	-------- To Share Capital A/c				30,000
	(Being 400 shares of Rs.100 each Rs.75 paid up re-issued for the sum of 28,000)

	Share Forfeiture A/c	Dr.		18,000
	-------- To Capital Reserve A/c				18,000
	(Being balance in share forfeiture after re- issue transferred to capital reserve)

Share Capital A/c
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Share Forfeiture	20,000	By Share Application A/c	5,00,000
To Calls-in-Arrears A/c	10,000	By Share Allotment A/c	5,00,000
To Balance c/d	15,00,000	By Share First Call A/c	5,00,000
		By Bank A/c	28,000
		By Share Forfeiture A/c	2,000
	15,30,000		15,30,000

Working Note:

Calculation of Capital Reserve

Share Forfeiture (Cr.)	20,000
Less: Share Forfeiture Debit	(2,000)
Balance in Share Forfeiture A/c	18,000

Capital Reserve = Balance in Share Forfeiture A/c after re-issue = Rs.18,000

Books of Hindustan Manufacturing Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Equity Share Final Call A/c	Dr.		2,50,000
	-------- To Equity Share Capital A/c				2,50,000
	(Being share final call due on 1,00,000 shares at Rs.2.5 per share)

	Bank A/c	Dr.		2,49,750
	Calls-in-Arrears A/c	Dr.		250
	-------- To Equity Share Final Call A/c				2,50,000
	(Being share final Call of Rs.2.5 per share received from 99,900 shares and 100 shares did not pay it)

	Equity Share Capital A/c	Dr.		1,000
	-------- To Share Forfeiture A/c				500
	-------- To Calls-in-Arrears A/c				500
	(Being 100 shares of Rs.10 each forfeited for the not payment of two calls of Rs.2.5 each)

	Bank A/c	Dr.		800
	Share Forfeiture A/c	Dr.		200
	-------- To Equity Share Capital A/c				1,000
	(Being 100 shares of Rs.10 each re issued atRs.8 per share fully paid up)

	Share Forfeiture A/c	Dr.		300
	-------- To Capital Reserve A/c				300
	(Being balance in share forfeiture account after reissue of shares, transferred to capital reserve)

Hindustan Manufacturing Ltd
Balance Sheet
Particulars			Note No	Rs.
I. Equity and Liabilities
	1. Shareholder's Funds
		a. Share Capital	1	10,00,000
		b. Reserve and Surplus	2	300
	2. Non - Current Liabilities
	3. Current Liabilities
Total				10,00,300

II. Assets
	1.Non-Current Assets
	2. Current Assets
		Cash and Cash Equivalents	3	10,00,300
Total				10,00,300

NOTES TO ACCOUNTS
Note No	Particulars	Rs.
1.	Share Capital
	Authorised Share Capital
	1,00,000 shares of Rs.10 each	10,00,000
	Issued Share Capital
	1,00,000 shares of Rs.10 each	10,00,000
	Subscribed Called-up and Paid up Share Capital
	1,000 shares of Rs.10 each	10,00,000

2.	Reserve and Surplus
	Capital Reserve	300

2.	Cash and Cash Equivalents
	Cash at Bank	10,00,300

Working Notes :
Calculation of Capital Reserve
Share Forfeiture Credit (100 shares × Rs.5 each)	500
Less : Share Forfeiture (100 share × Rs.2 each) (Loss)	(200)
Balance in Share Forfeiture Account after re-issue	300
Capital Reserve = Balance in Share Forfeiture Account after re-issue = Rs.300


Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
2014
1^st May	Share Capital A/c	Dr.		3,000
	------- To Share Forfeiture A/c				2,000
	------- To Calls-in-Arrears A/c				1,000
	(Being 200 shares of Rs.20 each Rs.15 called up forfeited for the non-payment Rs.5 per share)

11^st May	Bank A/c	Dr.		2,000
	Share forfeiture A/c	Dr.		1,000
	-------- To Share Capital A/c				3,000
	(Being 200 shares of Rs.20 each re-issued at Rs.10 each Rs.15 paid up

11^st May	Share Forfeiture A/c	Dr.		1,000
	-------- To Capital Reserve A/c				1,000
	(Being balance in share forfeiture after re - issue transferred to capital reserve)

Working Note :
Calculation of Capital Reserve
Share Forfeiture Credit (forfeiture)	Rs.2000
Less: Share Forfeiture Debit (re-issue)	(Rs.1,000)
Balance in Share Forfeiture Account after re-issue	Rs.1,000
Capital Reserve = Balance in Share Forfeiture Account after re-issue = Rs.1,000

Books of X Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Capital A/c	Dr.		800
	Securities Premium A/c	Dr.		200
	-------- To Share Forfeiture A/c				500
	-------- To Calls-in-Arrears A/c				500
	(Being 100 shares of Rs.10 each, Rs.8 called-up with premium Rs.2 per share, forfeited for the non-payment of Rs.5 each including Rs.2 premium)

	Bank A/c	Dr.		490
	Share Forfeiture A/c	Dr.		70
	-------- To Share Capital A/c				560
	(Being 70 shares of Rs.10 each re issued at Rs.7 per share Rs.8 paid - up)

	Share Forfeiture A/c	Dr.		280
	-------- To Capital Reserve A/c				280
	(Being balance of 70 shares re-issued shares in share forfeiture account transferred to capital reserve)

Working Note:
Calculation of Capital Reserve
Share Forfeiture Per Share (Cr.)	Rs.5
Less : Share forfeiture Debit Per Share	Rs.1
Balance in Share Forfeiture of re-issued shares Per Share	Rs.4

Capital Reserve = Balance in Share Forfeiture Account of re-issued shares × No. of shares re-issued

= 70 ×Rs.4 = Rs.280

Books of Bee Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Equity Share Capital A/c	Dr.		600
	-------- To Share Forfeiture A/c				400
	-------- To Calls-in-Arrears A/c				200
	(Being 100 shares of 10 each 6 called up forfeited for the non-payment of first call 2 per share)

	Bank A/c	Dr.		700
	Share forfeiture A/c	Dr.		300
	-------- To Share Capital A/c				1,000
	(Being 100 shares of 10 each re-issued at 7 per share, fully paid-up)

	Share Forfeiture A/c	Dr.		100
	-------- To Capital Reserve A/c				100
	(Being balance in share forfeiture of re-issued shares transferred to capital reserve)

Working Note
Calculation of Capital Reserve
Share Forfeiture (Cr.)	Rs.400
*Less*: Share Forfeiture (Dr.)	(Rs.300)
Balance in Share Forfeiture of re-issued shares	Rs.100
Capital Reserve = Balance in Share Forfeiture of re-issued shares = Rs.100

In the books of Devendra Ltd.
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
2010
1^stJan	Equity Share Capital A/c	Dr.		1,000
	-------- To Share Forfeiture A/c				800
	-------- To Calls-in-Arrears a/c				200
	(Being 100 shares of Rs.10 each forfeited for the non-payment of Rs.2 per share)

1^stFeb	Bank A/c	Dr.		420
	Share forfeiture A/c	Dr.		180
	-------- To Equity Share Capital A/c				600
	(Being 60 shares of Rs.10 each re-issued at Rs.7 per share , fully paid up)

1^stFeb	Share Forfeiture A/c	Dr.		300
	-------- To Capital Reserve A/c				300
	(Being balance in Share forfeiture account of 60 shares after re-issue transferred to capital reserve)

Working Note :
Capital Reserve
Forfeiture of re-issued shares
Share forfeiture per share (Cr.)	Rs.8
Less: Share forfeiture per share (Dr.)	Rs.3
Balance in share Forfeiture after re-issue per share	Rs.5

Capital Reserve:

= Balance in Share Forfeiture after re-issue per share × Number of Shares reissued

=Rs.5 × 60 = Rs.300

In the books of Virender Ltd.
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Capital A/c	Dr.		1,200
	-------- To Share Forfeiture A/c				400
	-------- To Calls-in-Arrears a/c				800
	(Being 20 shares of 100 each Rs.60 called-up forfeited for the non-payment of Rs.40 per share)

	Bank A/c	Dr.		675
	Share forfeiture A/c	Dr.		225
	-------- To Share Capital A/c				900
	(Being 15 shares of 100 each re-issued at Rs.45 per share , Rs.60 fully paid up)

	Share Forfeiture A/c	Dr.		75
	-------- To Capital Reserve A/c				75
	(Being balance in share forfeiture account of 15 shares after re-issue transferred to capital reserve)

Working Note :
Capital Reserve
Forfeiture of reissued shares
Share Forfeiture per share Cr. (at the time of forfeiture)	Rs.20
Less: Share Forfeiture per share Dr. (at the time of re -issue)	Rs.15
Balance in Share Forfeiture after re - issue	Rs.5

Capital Reserve

= Balance in Share Forfeiture after re - issue (per share) × Number of Shares reissued

= Rs.5 × 15 = Rs.75

(a)

Books of X Ltd. Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.

	Shares Capital	Dr.		2,400
	--------To Share Forfeiture A/c				1,500
	--------To Calls-in-Arrears A/c				900
	(Being 300 shares of Rs. 10 each on which had called Rs. 8, forfeited for non-payment of second call Rs. 3 per share)

	Bank A/c	Dr.		3,000
	--------To Share Capital A/c				3,000
	(Being 300 of Rs. 10 each re-issued)

	Share Forfeiture A/c	Dr.		1,500
	--------To Capital reserve A/c				1,500
	(Being balance in Share Forfeiture Account after re-issue transferred to Capital Reserve)

Working Notes

Calculation of Capital reserve

250

Journal
Sr. No.	Particulars		L.F.	Dr. Rs.	Cr. Rs.

a.	Shares Capital A/c	Dr.		140
	--------To Share Forfeiture A/c				100
	--------To Calls-in-Arrears A/c				40
	(Being 20 Shares of Rs. 10 each, Rs. 7 called-up forfeited for non-payment of call)

	Bank A/c	Dr.		120
	--------To Share Capital A/c				105
	--------To Securities Premium A/c				15
	(Being 15 shares were reissued as Rs. 7 paid-up for Rs. 8 per share)

	Share Forfeiture A/c	Dr.		75
	--------To Capital reserve A/c				75
	(Being transfer of profit on re-issue of 15 shares)

b.	Share Capital A/c			720
	Securities Premium A/c			180
	--------To Share Forfeiture A/c				450
	--------To Share Allotment A/c				450
	(Being share forfeited for non-payment of allotment )

	Bank A/c			800
	--------To Share Capital				640
	--------To Securities Premium A/c				160
	(Being 80 Shares were reissued for Rs. 10, Rs. 8 called-up)
				400
	Shares Forfeiture A/c				400
	--------To Capital Reserve A/c
	(Being transfer of profit on re-issue of 80 shares)

Working Notes

1.

400

Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	Equity Share Capital A/c	Dr.		45,000
	--------To Equity Share First Call A/c				15,000
	--------To Share Forfeited A/c				30,000
	(Being 500 equity share forfeited for non-payment of final call)

	Bank A/c	Dr.		39,000
	--------To Equity Share Capital A/c				30,000
	--------To Security Premium Reserve A/c				9,000
	(Being 300 share are reissue @ 130 per share)

	Share Forfeited A/c	Dr.		18,000
	--------To Capital Reserve A/c				18,000
	(Being profit on reissue of 300 shares transferred to Capital Reserve )

Working Note:

Amount transferred to Capital Reserve

Shares Re-issued = 300

Shares Forfeited = 500

Payable as :
On Application	Rs.2
Total (Called - up)	Rs.8

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Forfeiture of Shares
	Shares of A
	Share Capital A/c	Dr.		800
	-------- To Share Forfeiture A/c				100
	-------- To Calls-In-Arrears A/c				700
	(Being 100 shares of Rs.10 each, Rs.8 called-up held by A forfeited for the non-payment of Rs.7 per share)

	Shares of B
	Share Capital A/c	Dr.		1,600
	-------- To Share Forfeiture A/c				600
	-------- To Calls-in-Arrears A/c				1,000
	(Being 200 shares of Rs.10 each. Rs.8 called up held by B forfeited for non-payment of Rs.5 per share)

	Shares of C
	Share Capital A/c	Dr.		2,400
	-------- To Share Forfeiture A/c				1,800
	-------- To Calls-in-Arrears A/c				600
	(Being 300 shares of Rs.10 each, Rs. 8 called up held by C forfeited for the non-payment of Rs.2 per share)

	Re-issue of Shares
	Bank A/c	Dr.		6,600
	-------- To Share Capital A/c				6,000
	-------- To Securities Premium A/c				600
	(Being 600 shares of 10 each re-issued at 11 per share fully paid-up)

	Share Forfeiture A/c	Dr.		2,500
	-------- To Capital Reserve A/c				2,500
	(Being share forfeiture transferred to capital reserve)

Working Note :
Calculation of Capital Reserve
Share Forfeiture of 100 shares held by A (Cr.)	Rs.100
Share Forfeiture of 200 shares held by B (Cr.)	Rs.600
Share Forfeiture of 300 shares held by C (Cr.)	Rs.1,800
Total Share Forfeiture cr. (at the time of cancellation of shares)	Rs.2,500

Total Share Forfeiture (Cr.)(at the time of Cancellation of shares)		Rs.2,500
Less: Total shares Forfeiture (Dr.)(at the time of re-issue of shares)		0
Capital Reserve		2,500

Payable as :
On Application	Rs.2
Total	Rs.10


Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		40,000
	------- To Share Application A/c				40,000
	(Being share application money received for 20,000 shares of Rs.2 each)

	Share Application A/c	Dr.		40,000
	-------- To Share Capital A/c				40,000
	(Being share application money of 20,000 shares at Rs.2 each transferred to share Capital)

	Share Allotment A/c	Dr.		80,000
	-------- To Share Capital A/c				80,000
	(Being share allotment due on 20,000 shares at Rs.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
	(Being share first Call due on 20,000 shares at Rs.2 each)

	Bank A/c	Dr.		38,600
	Call-in-Arrears A/c	Dr.		2,000
	------- To Share First Call A/c				40,000
	------- To Calls-in-Advance A/c				600
	(Being share first call of Rs.2 per share received on 19,000 shares along with calls-in-advance of 300 shares at Rs.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 × Rs.6)				6,000
	------- To Calls-in-Arrears A/c				2,000
	(Being 1,000 shares of Rs.10 each on which 8 had called forfeited for the non-payment of first call Rs.2 per share)

	Share Final Call A/c	Dr.		38,000
	------- To Share Capital A/c				38,000
	(Being share final call due on 19,000 shares at Rs.2 each)

	Bank A/c	Dr.		37,400
	Calls-in-Advance A/c	Dr.		600
	--------To Share Final Call A/c				38,000
	(Being 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
	(Being 1,000 shares, re-issued at Rs.6 per share as fully paid-up

	Share Forfeiture A/c	Dr.		2,000
	-------- To Capital Reserve A/c				2,000
	(Being balance of share forfeiture account after re-issue transferred to capital reserve)


Software. Ltd
Balance Sheet
Particulars			Note No	Rs.
I. Equity and Liabilities
	1. Shareholder's Funds
		a. Share Capital	1	2,00,000
		b. Reserve 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
		Cash and Cash Equivalents	3	2,02,000
Total				2,02,000

NOTES TO ACCOUNTS
Note No	Particulars	Rs.
1.	Share Capital
	Authorised Share Capital
	50,000 shares of Rs.10 each	5,00,000
	Issued Share Capital
	20,000 shares of Rs.10 each	2,00,000
	Subscribed Called-up and Paid up Share Capital
	20,000 shares of Rs.10 each	2,00,000

2.	Reserve and Surplus
	Capital Reserve	2,000

2.	Cash and Cash Equivalents
	Cash at Bank	2,02,000

Working Notes :
Calculation of Capital Reserve
Share Forfeiture Cr. (at the time of forfeiture of shares)	Rs.6,000
Less : Share Forfeiture Dr. (at the time of re-issue)	(Rs.4,000)
Balance in Share Forfeiture Account re-issue of shares	Rs.2,000
Capital Reserve = Balance in Share Forfeiture Account of re-issued shares = Rs.2,000

Authorised Capital 25,000 shares of Rs.10 each

Issued Capital 4,000 shares to the vendor

8,000 shares issued to public

On Application Share = Rs.2 each

On Allotment share = Rs.1 each

On First Call = Rs.1 each

On Second Call = Rs.1 each

Total Called-up = Rs.5 Per Share

Shares to be forfeited (on which paid amount is less than Rs.4):
Shares on which paid Rs.3 per share	500
Shares on which paid Rs.2 per share	250
Number of shares to be forfeited	750

In the Book of New Company Ltd.
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Building A/c	Dr.		40,000
	-------- To Vendor A/c				40,000
	(Being building purchased)

	Vendor A/c	Dr.		40,000
	------- To Share Capital A/c				40,000
	(Being 4,000 shares of Rs.10 each issued to the vendor in consideration of building purchased)

	Bank A/c	Dr.		16,000
	-------- To Share Application A/c				16,000
	(Being share application money received for 8,000 shares at Rs.2 each)

	Share Application A/c	Dr.		16,000
	-------- To Share Capital A/c				16,000
	(Being share application of 8,000 shares transferred to share Capital Account)

	Share Allotment A/c	Dr.		8,000
	-------- To Share Capital A/c
	(Being share allotment due on 8,000 shares at Rs.1 each)				8,000

	Bank A/c	Dr.		7,750
	Calls-in-Arrears A/c	Dr.		250
	------- To Share Allotment A/c				8,000
	(Being share allotment of Rs.1 each received from 7,750 shares and holder of 250 shares failed to pay it)

	Share First Call A/c	Dr.		8,000
	-------- To Share Capital A/c				8,000
	(Being share first call due on 8,000 shares at Rs.1 each)

	Bank A/c	Dr.		7,250
	Calls-In-Arrears A/c	Dr.		750
	------- To Share First-Call A/c				8,000
	(Being share first call Rs.1 received 7,250 share and holders of 750 shares failed to pay it)

	Share Second Call A/c	Dr.		8,000
	-------- To Share Capital A/c				8,000
	(Being share final call due on 8,000 shares at Rs.1 each)

	Bank A/c	Dr.		6,000
	Calls-In-Arrears A/c	Dr.		2,000
	-------- To Share Second Call A/c				8,000
	(Being share second call Rs. 1 received from 6,000 shares and holder of 2,000 share failed to pay it)

	Share Capital A/c	Dr.		3,750
	-------- To Share Forfeiture A/c				2,000
	-------- To Calls in Arrears				1,750
	(Being 750 shares of Rs.10 each Rs.5 called up on which less than Rs.4 had received were forfeited)

	Bank A/c	Dr.		2,250
	Share Forfeiture A/c	Dr.		1,500
	-------- To Forfeiture A/c				3,750
	(Being 750 shares re-issued at Rs.3 per share as Rs.5 paid up)

	Share Forfeiture A/c	Dr.		500
	-------- To Capital Reserve A/c				500
	(Being balance in share forfeiture account transferred to capital reserve)

New Company Ltd.
Balance Sheet
Particulars				Note No	Rs.
I. Equity and Liabilities
	1. Shareholder's Funds
		a. Share Capital		1	78,750
		b. Reserve and Surplus		2	500
	2. Non-Current Liabilities
	3. Current Liabilities
Total					79,250

II. Assets
	1.Non-Current Assets
		a. Fixed Assets
			i. Tangible Assets	3	40,000
	2. Current Assets
		Cash and Cash Equivalents		4	39,250
Total					79,250

NOTES TO ACCOUNTS
Note No	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	25,000 shares of Rs.10 each		2,50,000
	Issued Share Capital
	12,000 shares of Rs.10 each		1,20,000
	Subscribed Called-up and Paid up Share Capital
	4,000 shares of Rs.10 each(for consideration other than cash)	40,000
	8,000 shares of Rs.10 each Rs.5 called up	40,000
	Less : Calls in Arrears (1,250 shares × Rs.1)	(1,250)	78,750

2.	Reserve and Surplus
	Capital Reserve		500

3.	Tangible Assets
	Building		40,000

4.	Cash and Cash Equivalents
	Cash at Bank		39,250

Working Notes : -
1.
Calls-in-Arrears on Allotment (250 shares × Rs.1)	Rs.250
Calls-in-Arrears on First Call (750 shares × Rs.1)	Rs.750
Calls-in-Arrears on Second Call (2,000 shares × Rs.1)	Rs.2,000
Total Calls-in-Arrears Debit	Rs.3,000
Less : Calls-in-Arrears Credit (at the time of forfeiture)	(Rs.1,750)
Calls-in-Arrears to be shown in the Balance Sheet	Rs.1250

2. Calculation of amount of share forfeiture credited on shares re-issued shares
Share Forfeiture of 250 shares Cr.(on which 2 per share paid)	Rs.500
Share Forfeiture of 500 shares Cr. (on which 3 per share)	Rs.1,500
Total Share Forfeiture credit Cr.(on 750 shares)	Rs.2,000

Calculation of Capital Reserve

=Total Share Forfeiture Cr.(on 750 shares) - Share Forfeiture Dr.(750 shares × Rs.2 per share)

= Rs.2,000 - Rs.1,500 = Rs.500

Issued and Applied 10,000 Shares of 10 each
				A		B		C	=	Paid up Share
Application	Rs.1	(10,000	-						=	10,000)
Allotment	Rs.2	(10,000	-	200	-	150			=	9,800)
First Call	Rs.3	(10,000	-	200	-	150			=	9,650)
Second and Final Call	Rs.4	(10,000	-	200	-	150	-	50	=	9,600)
Called - up	Rs.10

Book of Slow and Steady Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		10,000
	-------- To Equity Share Application A/c				10,000
	(Being share application money received for 10,000 shares at Rs.1 each)

	Equity Share Application A/c	Dr.		10,000
	-------- To Equity Share Capital A/c				10,000
	(Being equity Share application of transferred to share capital )

	Equity Share Allotment A/c	Dr.		20,000
	-------- To Equity Share Capital A/c				20,000
	(Being share allotment due on 10,000 shares at Rs.2 each)

	Bank A/c	Dr.		19,600
	Calls-in-Arrears A/c	Dr.		400
	------- To Equity Share Allotment A/c				20,000
	(Being share allotment of Rs.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 A/c				30,000
	(Being share first call due on 10,000 shares at Rs.3 each)

	Bank A/c	Dr.		28,950
	Calls-In-Arrears A/c	Dr.		1,050
	------- To Equity Share First-Call A/c				30,000
	(Being 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 Share Capital A/c				40,000
	(Being share final call due on 10,000 shares at Rs.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
	(Being 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	Dr.			200
	-------- To Calls in Arrears				1,800
	(Being 200 shares held by A on which application money Rs.1 was received forfeited)

	Equity Share Capital A/c	Dr.		1,500
	-------- To Share Forfeiture A/c				450
	-------- To Calls-in-Arrears A/c				1,050
	(Being 150 shares of 10 each held by B forfeited for the non-payment of two calls)

	Equity Share Capital A/c	Dr.		500
	-------- To Share Forfeiture A/c				300
	-------- To Calls-in-Arrears A/c				200
	(Being 50 shares of Rs.10 each held by C forfeited for the non-payment of final call Rs.4 each)

	Bank A/c	Dr.		3,800
	Share Forfeiture A/c	Dr.		200
	-------- To Equity Share Capital A/c				4,000
	(Being 400 shares of Rs.10 each re-issued at Rs.9.5 per share as fully paid-up

	Share Forfeiture A/c	Dr.		750
	-------- To Capital Reserve A/c				750
	(Being balance in share forfeiture account after re-issued shares, transferred to capital reserve)

Working Note : -
Share Forfeiture of 100 shares held by A Cr.	Rs.200
Share Forfeiture of 200 shares held by B Cr.	Rs.450
Share Forfeiture of 300 shares held by C Cr.	Rs.300
Total Share Forfeiture Cr. (at the time of cancellation of shares)	Rs.950

Calculation of Capital Reserve

= Total Share Forfeiture Cr.(at the time of cancellation of shares) - Total Share Forfeiture Dr.(at the time of re-issues of shares)

= Rs.950 - Rs.200 = Rs.750

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Capital A/c	Dr.		70
	-------- To Share Forfeiture A/c				50
	-------- To Calls-In-Arrears A/c				20
	(Being A's share of Rs.100 on which Rs.70 called excluding the amount of securities premium Rs.10, forfeited for non-payment of Rs.20)

	Bank A/c	Dr.		70
	Share Forfeiture A/c	Dr.		30
	-------- To Share Capital A/c				100
	(Being A's share of Rs.100 re-issued at Rs.70 as fully paid-up)

	Share Forfeiture A/c	Dr.		20
	-------- To Capital Reserve A/c				20
	(Being balance in share forfeiture after re-issue transferred to capital reserve)

Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	Equity Share Capital A/c	Dr.		2,000
	--------To Share Forfeiture A/c				1,400
	--------To Calls-in-Arrears A/c				600
	(200 shares of Rs. 10 each forfeited for the non-payment of Rs. 3 per share)

	Bank A/c	Dr.		600
	Share Forfeiture A/c	Dr		400
	--------To Equity Share Capital A/c				1,000
	(Being 100 shares of Rs. 10 each reissued at Rs. 6 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		300
	--------To Capital Reserve A/c				300
	(Being balance in share forfeiture of 100 re-issued shares transferred to Capital Reserve )

Working Note :
Calculation Balance of Forfeiture of reissued shares
Share Forfeiture per share Cr.	Rs.7
Less: Share Forfeiture per share Dr.	(Rs.4)
Balance of Share Forfeiture after re-issue cr. (per share)	Rs.3

Capital Reserve

= Balance in Share Forfeiture after re-issue per share × Number of Shares reissued

= Rs.3 × 100 = Rs.300

In the Books of VT Ltd. Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	Share Capital A/c	Dr.		2,000
	--------To Share Forfeiture A/c				1,400
	--------To Calls-in-Arrears A/c				600
	(Being 200 shares of Rs. 10 each forfeited for the non-payment of Rs. 3 each)

	Bank A/c	Dr.		600
	Share Forfeiture A/c	Dr		400
	--------To Share Capital A/c				1,000
	(Being 100 shares of Rs. 10 each re-issued at Rs. 6 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		300
	--------To Capital Reserve A/c				300
	(Being balance in share forfeiture of 100 shares transferred to Capital Reserve )

Working Note :
Calculation Balance of Forfeiture of reissued shares
Share Forfeiture per share Cr.	Rs.7
Less: Share Forfeiture per share Dr.	(Rs.4)
Balance of Share Forfeiture after re-issue cr. (per share)	Rs.3

Capital Reserve

= Balance in Share Forfeiture after re-issue (Per Share) × Number of Shares reissued

= Rs.3 × 100 = Rs.300

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Capital A/c	Dr.		2,400
	-------- To Share Forfeiture A/c				1,800
	-------- To Calls-In-Arrears A/c				600
	(Being 300 shares of Rs.10 each on which Rs.8 had called, forfeited for non-payment Rs.2 per share)

	Bank A/c	Dr.		1,500
	-------- To Share Capital A/c				1,500
	(Being 150 shares of Rs.10 each re-issued for the sum of 1,500)

	Share Forfeiture A/c	Dr.		900
	-------- To Capital Reserve A/c				900
	(Being balance in share forfeiture after re-issue transferred to capital reserve)

Working Note:

Share Forfeiture Cr. (at the time of forfeiture)	Rs.6
Less : Share Forfeiture Dr.(at the time of re-issue)	NIL
Balance in Share forfeiture after re-issue Cr.	Rs.6

Calculation Capital Reserve

Capital Reserve = Balance in Share Forfeiture after re-issue Cr. (per share) × No. of shares re-issued

= Rs. 6 × 150

= Rs.900

Payable as :
On Application	Rs.4
Total (10 + 2)	Rs.12

Called-up = Application + Allotment

= Rs.5 + Rs.3 (Including premium Rs.2)

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Capital A/c	Dr.		1,200
	Securities Premium A/c	Dr.		400
	-------- To Share Forfeiture A/c				1,000
	-------- To Calls-In-Arrears A/c				600
	(Being 200 shares of Rs.10 each on whichRs. 8 had called (including Rs.2 premium), forfeited for the non-payment of allotment Rs.3 (including Rs.2 premium)

	Bank A/c	Dr.		800
	Share forfeiture A/c	Dr.		200
	-------- To Share Capital A/c				1,000
	(Being 100 shares of 10 each re-issued at Rs.8 per share fully paid up)

	Share Forfeiture A/c	Dr.		300
	-------- To Capital Reserve A/c				300
	(Being balance in share forfeiture of 100 re-issue shares transferred to capital reserve)

Working Note:

Share Forfeiture Cr. per share (at the time of forfeiture)	Rs.5
Less: Share Forfeiture Dr. per share (at the time of re-issue)	Rs.2
Balance in Share Cr. per share (after re-issue)	Rs.3

Calculation of Capital Reserve Capital Reserve = Balance in Share Forfeiture of re-issued (Cr. per share) × Number of shares re-issued

= Rs.3 × Rs.100

= Rs.300

Journal In the books of Vishesh Ltd
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Equity Share Capital A/c	Dr.		8,000
	Securities Premium A/c	Dr.		2,000
	-------- To Share Forfeiture A/c				5,000
	-------- To Calls-In-Arrears A/c				5,000
	(Being 1,000 shares of Rs.10 each issued at premium of Rs.2 forfeited for non-payment of allotment money of Rs.5 including premium final call of Rs.2 not yet made)

	Bank A/c	Dr.		9,600
	-------- To Share Capital A/c				8,000
	-------- To Securities Premium A/c				1,600
	(Being 800 shares reissued at Rs.12 fully paid-up)

	Bank A/c	Dr.		2,200
	-------- To Share Capital A/c				2,000
	-------- To Securities Premium A/c				200
	(Being 200 shares reissued at Rs.11 fully paid-up)

	Share Forfeiture A/c	Dr.		5,000
	-------- To Capital Reserve A/c				5,000
	(Being profit on re-issue transferred to capital reserve)


Date	Particulars			L.F.	Debit Rs.	Credit Rs.
	Share Capital A/c		Dr.		900
	Securities Premium A/c		Dr.		600
		To Share Allotment A/c				1,200
		To Share Forfeiture A/c				300
	(150 shares of Rs.10 each forfeited for non-payment of allotment money of Rs.8 per share including premium of Rs.4 per share)


	Bank A/c		Dr.		2,250
		To Share Capital A/c				1,500
		To Securities Premium A/c				750
	(150 shares of Rs.10 each reissued for Rs.15 per share fully paid-up)


	Share Forfeiture A/c		Dr.		300
		To Capital Reserve A/c				300
	(Balance of Share Forfeiture Account transferred to Capital Reserve Account)

Issued and applied 50,000 equity shares at Rs.10 each at a premium Rs.1

payable as :

On Application

Rs.2

Total (10 + 1)

Rs.11

In the Books of Commerce Publications Ltd.
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		1,00,000
	-------- To Equity Share Application A/c				1,00,000
	(Being share application money received for 50,000 shares at Rs.2 each)

	Equity Share Application A/c	Dr.		1,00,000
	-------- To Equity Share Capital A/c				1,00,000
	(Being equity share application money transferred to share capital)

	Equity Share Allotment A/c	Dr.		2,50,000
	-------- To Equity Share Capital A/c				2,00,000
	-------- To Securities Premium A/c				50,000
	(Being share allotment due on 50,000 shares at Rs.5 each including 1 premium)

	Bank A/c	Dr.		2,47,500
	Calls-in-Arrears A/c	Dr.		2,500
	-------- To Equity Share Allotment A/c				2,50,000
	(Being share allotment of Rs.5 each ,received on 49,500 shares and holders of 500 shares failed to pay it)

	Equity Share First Calls A/c	Dr.		1,00,000
	-------- To Equity Share Capital A/c				1,00,000
	(Being first call due on 50,000 shares at Rs.2 each)

	Bank A/c	Dr.		99,000
	Calls-in-Arrears A/c	Dr.		1,000
	-------- To Equity Share First call A/c				1,00,000
	(Being first call received on 49,500 shares and 500 shares failed to pay it)

	Equity Share Capital A/c	Dr.		4,000
	Securities Premium A/c	Dr.		500
	-------- To Share Forfeiture A/c				1,000
	-------- To Calls-in-Arrears A/c				3,500
	(Being 500 shares forfeited for the non-payment of Rs. 7 including Rs.1 premium)

	Equity Share Final Call A/c	Dr.		99,000
	-------- To Equity Share Capital A/c				99,000
	(Being share final call due 49,500 share at Rs.2 each)

	Bank A/c	Dr.		99,000
	-------- To Equity Share Final Call A/c				99,000
	(Being share final call money received)

	Bank A/c	Dr.		4,500
	Share Forfeiture A/c	Dr.		500
	-------- To Equity Share Capital A/c				5,000
	(Being 500 shares of Rs.10 each reissued for Rs.9 per share as fully paid-up)

	Share Forfeiture A/c	Dr.		500
	-------- To Capital Reserve A/c				500
	(Being balance of share forfeiture after re-issue transferred to capital reserve)

Working Note:
Share Forfeiture Cr.	Rs.1,000
Less : Share Forfeiture Dr.	(Rs.500)
Balance in Share Forfeiture Cr. (after re-issue)	Rs.500

Capital Reserve = Balance in Share Forfeiture Cr.

= Rs.500

Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	Equity Share Capital A/c	Dr.		17,500
	Securities Premium Reserve A/c	Dr.		3,750
	--------To Equity Share Allotment A/c				3,750
	--------To Equity Share First Call A/c				5,000
	--------To Share Forfeited A/c				12,500
	(Being 2,500 shares forfeited )

	Bank A/c	Dr.		20,000
	Share Forfeiture A/c	Dr		5,000
	--------To Equity Share Capital A/c				25,000
	(Being share reissue @ Rs.8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		7,500
	--------To Capital Reserve A/c				7,500
	(Being profit on reissue transferred to Capital Reserve )

(7,500)

Amount unpaid on allotment

Rs.3,750

Issued and Applied 20,000 equity shares of Rs.10 each at premium of Rs.5 Payable as :

On Application (2 + 5)	Rs.3
Total (10 + 5)	Rs.15

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		1,40,000
	-------- To Equity Share Application A/c				1,40,000
	(Being share application money received for 20,000 shares at Rs.7 each)

	Equity Share Application A/c	Dr.		1,40,000
	-------- To Equity Share Capital A/c				40,000
	-------- To Securities premium A/c				1,00,000
	(Being share application money of 20,000 shares transferred share capital at Rs.25 per share and securities premium at Rs.5 per share)

	Equity Share Allotment A/c	Dr.		1,00,000
	-------- To Equity Share Capital A/c				1,00,000
	(Being share allotment due on 20,000 shares at Rs.5 each)

	Bank A/c	Dr.		99,000
	Calls-in-Arrears A/c	Dr.		1,000
	-------- To Equity Share Allotment A/c				1,00,000
	(Being share allotment received on 19,800 shares and a holder of 200 shares failed to pay it)

	Equity Share First and Final Call A/c	Dr.		60,000
	-------- To Equity Share Capital A/c				60,000
	(Being first and final call due on 20,000 shares at Rs.3 each)

	Bank A/c	Dr.		59,400
	Calls-in-Arrears A/c	Dr.		600
	-------- To Equity Share First and Final Call A/c				60,000
	(Being first and final call received on 19,800 shares and a holder of 200 shares failed to pay it)

	Equity Share Capital A/c	Dr.		2,000
	-------- To Share Forfeiture A/c (Rs.2 × 200 shares)				400
	--------- To Calls-in-Arrears A/c				1600
	(Being 200 shares of Rs.10 each forfeited for the non-payment amount due on 8 per share

	Bank A/c	Dr.		1,600
	-------- To Equity Share Capital A/c				1,600
	(Being 160 shares of Rs.10 each re-issued for the sum of 1,600)

	Share Forfeiture A/c	Dr.		320
	-------- To Capital Reserve A/c				320
	(Being balance in share forfeiture of 160 re-issued shares transferred to capital reserve)

Telecom Ltd.
Balance Sheet
Particulars				Note No	Rs.
I. Equity and Liabilities
	1. Shareholder's Funds
			a. Share Capital	1	1,99,680
			b. Reserve and Surplus	2	1,00,320
	2. Non - Current Liabilities
	3. Current Liabilities
Total					3,00,000

II. Assets
	1.Non-Current Assets
	2. Current Assets
		Cash and Cash Equivalents		3	3,00,000
Total					3,00,000

NOTES TO ACCOUNTS
Note No	Particulars			Rs.
1.	Share Capital
	Authorised Share Capital
	shares of 10 each
	Issued Share Capital
	20,000 shares of 10 each			2,00,000
	Subscribed Called-up and Paid up Share Capital
	19,960 shares of 10 each		1,99,600
		Add : Shares Forfeited (40 shares × Rs.2)	80	1,99,680

2.	Reserve and Surplus
	Securities Premium		1,00,000
	Capital Reserve		320	1,00,320

2.	Cash and Cash Equivalents
	Cash at Bank			3,00,000

Working Notes: 1 . Share Forfeiture of Re-issued Shares
Share Forfeiture Cr. (at the time of forfeiture after deducting premium) (Rs.7 - Rs.5)	Rs.2
Less : Share Forfeiture Dr. (at the time of re-issue)	NIL
Balance in Share Forfeiture after re-issue Cr. per share	Rs.2

Calculation Of Capital Reserve

Capital Reserve = Balance share forfeiture after reissue (per share) × Numbers of Share reissued

= Rs.2 ×160 = Rs.320

2.

Calculation of balance remaining in Share forfeiture A/c (to be shown in the Balance Sheet)

Share Forfeiture Dr. (at the time of forfeiture of 200 shares)	=	420
Less: Share forfeiture Cr. (at the time re-issue of 160 shares)	=	(320)
Balance in Share Forfeiture A/c Dr. (for 40 shares which are not re-issued)	=	80

Authorised Capital 2,000 equity Shares at 100 each

Issued Capital

1,000 Equity Shares at 100 each to the vendor of the building

1,000 equity Shares at 100 each with a premium 5 to the public

Applied by Public : 900 Equity Shares

Payable as :
On Application	Rs.10
On Allotment (20 + 5)	Rs.25
On First Call	Rs.40
On Called-up (70 + 5)	Rs.75
On Final Call	Rs.30
Total (100 + 5)	Rs.105

Books of Kamal Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Building A/c	Dr.		1,00,000
	-------- To vendor A/c				1,00,000
	(Being building purchased from the vendor)

	Vendor A/c	Dr.		1,00,000
	-------- To Equity Share Capital A/c				1,00,000
	(Being 1,000 equity shares of Rs.100 each issued to the vendor of building)

	Bank A/c	Dr.		9,000
	-------- To Equity Share Application A/c				9,000
	(Being share application money received for 900 shares at Rs.10 each)

	Equity Share Application A/c	Dr.		9,000
	-------- To Equity Share Capital A/c				9,000
	(Being share application money of 900 shares at Rs.10 each transferred to share capital)

	Equity Share Allotment A/c	Dr.		22,500
	-------- To Securities Premium				4,500
	-------- To Equity Share Capital A/c				18,000
	(Being share allotment due on 900 shares at Rs.25 each including Rs.5 premium)

	Bank A/c	Dr.		22,500
	-------- To Equity Share Allotment A/c				22,500
	(Being share allotment money received on 900 shares at Rs.25 each)

	Equity Share First Call A/c	Dr.		36,000
	-------- To Equity Share Capital A/c				36,000
	(Being first call due on 900 shares at Rs.40 each)

	Bank A/c	Dr.		32,000
	Calls-in-Arrears A/c	Dr.		4,000
	-------- To Equity Share First-call A/c				36,000
	(Being first call received on 800 shares and a holder of 100 shares failed to pay it)

	Equity Share Capital A/c	Dr.		7,000
	-------- To Share Forfeiture A/c				3,000
	-------- To Calls-in-Arrears A/c				4,000
	(Being 100 shares of Rs.100 each Rs.70 called-up forfeited for the non-payment of Rs.40)

	Bank A/c	Dr.		6,000
	Share Forfeiture A/c	Dr.		1,000
	-------- To Equity Share Capital A/c				7,000
	(Being 100 shares of Rs.100 each, re-issued at Rs. 60 per share as Rs.70 paid up)

	Share forfeiture A/c	Dr.		2,000
	-------- To Capital Reserve A/c				2,000
	(Being balance in share forfeiture the account after re-issue transferred to capital reserve)

Kamal Ltd
Balance Sheet
Particulars					Note No	Rs.
I. Equity and Liabilities
	1. Shareholder's Funds
			a. Share Capital		1	1,63,000
			b. Reserve and Surplus		2	6,500
	2. Non-Current Liabilities
	3. Current Liabilities
Total						1,69,500

II. Assets
	1.Non-Current Assets
			a. Fixed Assets
				i. Tangible Assets	3	1,00,000
	2. Current Assets
		Cash and Cash Equivalents			4	69,500
Total						1,69,500

NOTES TO ACCOUNTS
Note No	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	2,000 Equity shares of 100 each		2,00,000
	Issued Share Capital
	2,000 Equity shares of 100 each		2,00,000
	Subscribed, Called-up and Paid up Share Capital
	1,000 Equity Share of 100 each for Consideration other than cash)	1,00,000
	900 Equity Shares of 100 each 70 Called up	63,000	1,63,000

2.	Reserve and Surplus
	Securities Premium	4,500
	Capital Reserve	2,000	6,500

3.	Tangible Assets
	Building		1,00,000

4.	Cash and Cash Equivalents
	Cash at Bank		69,500

Working Note:

Calculation Capital Reserve

Capital Reserve

=Share Forfeiture Cr. (at the time of forfeiture) - Share forfeiture Dr. (at the time of re-issue)

= 3,000 - 1,000 = Rs.2,000

Authorised Capital 20,000 shares of Rs.10 each

Issued and Applied 20,000 shares of Rs.10 each at a premium Rs.2

Payable as :

On Application (3 + 2)	Rs.3
Total Called-up (10 + 2)	Rs.12

In the Books of Krishna and Co. Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.

	Bank A/c	Dr.		1,00,000
	-------- To Equity Share Application A/c				1,00,000
	(Being share application money received for 20,000 shares at Rs.5 each)

	Equity Share Application A/c	Dr.		1,00,000
	-------- To Equity Share Capital A/c				60,000
	-------- To Securities Premium A/c				40,000
	(Being share application money of 20,000 shares share at Rs.10 each transferred to Share Capital at Rs.3 per share and Securities Premium and Rs.2 per share)

	Equity Share Allotment A/c	Dr.		80,000
	-------- To Equity Share Capital A/c				80,000
	(Being share allotment due on 20,000 shares at Rs.4 each including Rs.5 premium)

	Bank A/c	Dr.		79,200
	Calls-In-Arrears A/c	Dr.		800
	-------- To Equity Share Allotment A/c				80,000
	(Being share allotment received on 19,800 shares and holders of 200 shares failed to pay it)

	Equity Share First and final Call A/c	Dr.		60,000
	-------- To Equity Share Capital A/c				60,000
	(First call due on 20,000 shares at Rs.3 each)

	Bank A/c	Dr.		58,500
	Calls-in-Arrears A/c	Dr.		1,500
	-------- To Equity Share First and Final call A/c				60,000
	(Being first and final call of Rs.3 each received on 19,500 shares and holders of 500 shares failed pay it)

	Equity Share Capital A/c	Dr.		2,000
	-------- To Share Forfeiture A/c				600
	-------- To Calls-in-Arrears A/c				1,400
	(Being 200 shares of Rs.10 each forfeited for the non-payment of allotment Rs.4 and call Rs.7 per share

	Equity Share Capital A/c	Dr.		3,000
	-------- To Share Forfeiture A/c				2,100
	-------- To Calls-in-Arrears A/c				900
	(Being 300 shares of Rs.10 each forfeited for the non-payment of call money Rs.3 per share)

	Bank A/c	Dr.		2,800
	Share Forfeiture A/c	Dr.		1,200
	-------- To Share Capital A/c				4,000
	(Being 400 shares of Rs.10 each re-issued at Rs.7 per share as fully paid-up)

	Share forfeiture A/c	Dr.		800
	-------- To Capital Reserve A/c				800
	(Being balance in share forfeiture the account 400 shares transferred to capital reserve)

Krishna and Co. Ltd
Balance Sheet
Particulars			Note No	Rs.
I. Equity and Liabilities
	1. Shareholder's Funds
		a. Share Capital	1	1,99,700
		b. Reserve and Surplus	2	40,800
	2. Non-Current Liabilities
	3. Current Liabilities
Total				2,40,500

II. Assets
	1. Non-Current Assets
	2. Current Assets
		Cash and Cash Equivalents	3	2,40,500
Total				2,40,500

NOTES TO ACCOUNTS
Note No	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	20,000 Equity shares of Rs.10 each		2,00,000
	Issued Share Capital
	20,000 Equity shares of Rs.10 each		2,00,000
	Subscribed Called-up and Paid up Share Capital
	19,900 Equity Share of Rs.100 each for Consideration other than cash)	1,99,000
	Add : Shares forfeited (100 shares × Rs.7)	700	1,99,700

2.	Reserve and Surplus
	Securities Premium	40,000
	Capital Reserve	800	40,800

3.	Cash and Cash Equivalents
	Cash at Bank		2,40,500

Working Notes :

Calculation of Total Balance of Share Forfeiture

1.

Capital Reserve of 200 shares on which only application received

Share Forfeiture Cr. per share (excluding premium)	Rs.3
Less: Share Forfeiture Dr. per share	Rs.3
Balance of Share Forfeiture	NIL

2.

Capital Reserve of 200 shares on which only application and allotment received

Share Forfeiture Cr per share (excluding premium)	Rs.7
Less: Share Forfeiture Dr. per share	Rs.3
Balance of Share Forfeiture	Rs.4

Capital Reserve	=	200 Shares × Balance of Share Forfeiture Cr. per share
Capital Reserve	=	200 × Rs.4 = Rs.800

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c (40,000 × 50)	Dr.		20,00,000
	To Equity Share Application A/c				20,00,000
	(Application money received on 40,000 shares)

	Equity Share Application A/c	Dr.		20,00,000
	To Equity Share Capital A/c (27,000 × 50)				13,50,000
	To Calls in Advance A/c (13,000 × 50)				6,50,000
	(Application money transferred to Share Capital)

	Equity Share Allotment A/c (27,000 × 10)	Dr.		2,70,000
	To Equity Share Capital A/c				2,70,000
	(Allotment money due)

	Bank A/c	Dr.		94,000
	Calls in Advance A/c			2,00,000
	To Equity Share Allotment A/c				2,70,000
	To Calls-in-Advance A/c				24,000
	(Allotment money received)

	Equity Share First Call A/c (27,000 × 40)	Dr.		10,80,000
	To Equity Share Capital A/c				10,80,000
	(Call money due)

	Bank A/c	Dr.		6,26,500
	Calls-in-Advance A/c	Dr.		4,50,000
	Calls-in-Arrears A/c	Dr.		3,500
	To Equity Share First Call A/c				10,80,000
	(Call money received)

	Equity Share Capital A/c	Dr.		20,000
	To Equity Share First Call A/c				3,500
	To Equity Share Forfeiture A/c				16,500
	(200 shares forfeited for non-payment of call money)

	Bank A/c (200 × 105)	Dr.		21,000
	To Equity Share Capital A/c				20,000
	To Securities Premium A/c				1,000
	(200 shares re-issued at Rs.105 per share)

	Equity Share Forfeiture A/c	Dr.		16,500
	To Capital Reserve A/c				16,500
	(Profit on re-issue transferred to Capital Reserve)

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c (50,000 × 4)	Dr.		2,00,000
	To Equity Share Application A/c				2,00,000
	(Application money received on 50,000 shares)

	Equity Share Application A/c	Dr.		2,00,000
	To Equity Share Capital A/c				1,00,000
	To Securities Premium Reserve A/c				1,00,000
	(Application money transferred to Share Capital)

	Equity Share Allotment A/c (50,000 × 6)	Dr.		3,00,000
	To Equity Share Capital A/c				1,50,000
	To Securities Premium Reserve A/c				1,50,000
	(Allotment money due on 50,000 shares)

	Bank A/c (49,800 × 6) + (400 × 8)	Dr.		3,02,000
	To Equity Share Allotment A/c (49,800 × 5)				2,98,800
	To Calls-in-Advance A/c (400 × 8)				3,200
	(Allotment money received)

	Equity Share Capital A/c (200 × 5)	Dr.		1,000
	Securities Premium Reserve A/c (200 × 3)	Dr.		600
	To Equity Share Allotment A/c (200 × 6)				1,200
	To Equity Share Forfeiture A/c (200 × 2)				400
	(200 shares forfeited for non-payment of allotment money including premium of Rs.3)

	Equity Share First Call A/c (49,800 × 5)	Dr.		2,49,000
	To Equity Share Capital A/c				1,99,200
	To Securities Premium Reserve A/c				49,800
	(Call money due on 49,800 shares)

	Bank A/c (49,700 × 5) - 2,000 + 900	Dr.		2,47,400
	Calls-in-Advance A/c (400 × 5)	Dr.		2,000
	To Calls-in-Advance A/c (300 × 3)				900
	To Equity Share First Call A/c				2,48,500
	(Call money received)

	Equity Share Capital A/c (100 × 9)	Dr.		900
	Securities Premium Reserve A/c (100 × 1)			100
	To Equity Share First Call A/c (100 × 5)				500
	To Equity Share Forfeiture A/c (100 × 5)				500
	(100 shares forfeited for non-payment of call money)

	Equity Share Second and Final Call A/c (49,700 × 3)	Dr.		1,49,100
	To Equity Share Capital A/c				49,700
	To Securities Premium A/c				99,400
	(Call money due on 49,700 shares)

	Bank A/c	Dr.		1,47,000
	Calls-in-Advance A/c (1,200 + 900)			2,100
	To Equity Share Second and Final Call A/c				1,49,100
	(Call money received on shares)

	Bank A/c (300 × 9)	Dr.		2,700
	Equity Share Forfeiture A/c			300
	To Equity Share Capital A/c				3,000
	(300 shares re-issued at Rs.9 per share)

	Equity Share Forfeiture A/c (400 + 500 - 300)	Dr.		600
	To Capital Reserve A/c				600
	(Profit on re-issue transferred to Capital Reserve)

Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	Bank A/c	Dr.		13,44,000
	--------To Equity Share Application and Allotment A/c				13,44,000
	(Being application money received)

	Equity Share Application and Allotment A/c	Dr.		13,44,000
	--------To Equity Share Capital A/c				3,84,000
	--------To security Premium A/c				9,60,000
	(Being application money adjusted to Share Capital)

	Equity Share First Call A/c	Dr.		7,68,000
	--------To Equity Share Capital A/c				2,88,000
	--------To Security Premium Reserve A/c				4,80,000
	(Being first call money due)

	Bank A/c	Dr.		7,12,000
	--------To Equity Share First Call A/c				7,12,000
	(Being 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				4,80,000
	(Being call money due)

	Bank A/c	Dr.		6,72,000
	--------To Equity Share Second Call A/c				6,72,000
	(Being second call money received)

	Equity Share Capital A/c	Dr.		1,20,000
	Security Premium Reserve A/c	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				63,000
	(Being shares forfeited)

	Bank A/c	Dr.		64,000
	Shares Forfeited A/c			16,000
	--------To Equity Share Capital A/c				80,000
	(Being shares Reissued)

	Shares Forfeited A/c	Dr.		19,000
	--------To Capital Reserve A/c				19,000
	(Being profit on Reissue transferred to Capital Reserve A/c)

Working Notes:

Amount transferred to Capital Reserve

Total amount forfeited on reissued shares = 28,000 + 7,000 = Rs. 35,000

Amount transferred to Capital Reserve A/c = 35,000 - 16,000 = Rs. 19,000

Books of Alfa Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		4,00,000
	-------- To Equity Share Application and Allotment A/c				4,00,000
	(Being application money received on 1,00,000 shares)

	Equity Share Application and Allotment A/c	Dr.		4,00,000
	-------- To Equity Share Capital A/c				3,00,000
	-------- To Equity Share First Call A/c				1,00,000
	(Being application money transferred to Share capital account and excess money is adjusted in first call account)

	Equity Share First Call A/c	Dr.		2,25,000
	-------- To Equity Share Capital A/c				2,25,000
	(Being amount due on First call)

	Bank A/c	Dr.		1,23,750
	-------- To Equity Share First Call A/c				1,23,750
	(Being amount received on first call)

	Equity Share Capital A/c	Dr.		5,250
	-------- To Equity Share Forfeiture A/c				4,000
	-------- To Equity Share First Call A/c				1,250
	(Being Vibha's shares were forfeited)

	Equity Share Second and Final Call A/c	Dr.		2,22,750
	-------- To Equity Share Capital A/c				2,22,750
	(Being amount due on second and final call after forfeiting Vibha's Shares)

	Bank A/c	Dr.		2,20,500
	-------- To Equity Share Second and Final Call A/c				2,20,500
	(Being amount received in second and final call)

	Equity Share Capital A/c	Dr.		7,500
	-------- To Equity Share Forfeiture A/c				5,250
	-------- To Equity Share Second and Final Call A/c				2,250
	(Being Monika's shares were forfeited)

	Bank A/c	Dr.		9,000
	Equity Share Forfeiture A/c	Dr.		6,000
	-------- To Equity Share Capital A/c				15,000
	(Being forfeited shares were reissued for 9,000 as fully paid-up)

	Equity Share Forfeiture A/c	Dr.		3,250
	-------- To Capital Reserve A/c				3,250
	(Being excess amount on forfeiture is transferred to capital reserve)

Working Notes:

1.

Calculation of not received (First Call Money)

Amount received on 1,000 shares of Rs.4 each = Rs.4,000

Amount transferred to Share Capital Account (750 × Rs.4) = Rs.3,000

Excess money received on application and allotment = Rs.1,000

Amount due on First call @ Rs.3 each = Rs.2,250

Amount not received on first call money (Rs.2,250 - Rs.1,000) = Rs.1,250

2.

Calculation of amount not received (Second Call Money)

Books of Himalaya Company Ltd. Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		4,80,000
	---------To Share Application A/c				4,80,000
	(Being share application money received for 1,60,000 shares @ Rs.3 per share)

	Share Application A/c	Dr.		4,80,000
	---------To Equity Share Capital A/c				3,60,000
	---------To Share Allotment A/c				1,20,000
	(Being share application for 1,20,000 shares @ Rs.3 per share transferred to Share Capital Account and remaining amount adjusted to allotment)

	Share Allotment A/c	Dr.		6,00,000
	---------To Equity Share Capital A/c				3,60,000
	---------To Securities Premium A/c				2,40,000
	(Being share allotment money due on 1,20,000 shares @ Rs.5 per share including Rs.2 Securities Premium)

	Bank A/c	Dr		4,80,000
	---------To Share Allotment A/c				4,80,000
	(Being share allotment for 1,20,000 shares @ Rs.5 per share received)

	Share First Call A/c	Dr.		2,40,000
	---------To Equity Share Capital A/c				2,40,000
	(Being first call due on 1,20,000 shares @ Rs.2 per share)

	Bank A/c	Dr.		2,30,000
	---------To Share First call A/c				2,30,000
	(Being first call received on 1,15,200 shares @ Rs.2 per share and 4,800 share failed to pay)

	Share Final Call A/c	Dr.		2,40,000
	---------To Equity Share Capital A/c				2,40,000
	(Being share final call due 1,20,000 shares @ Rs.2 per share)

	Bank A/c	Dr.		2,30,400
	---------To Share Final call A/c				2,30,400
	(Being share final call received on 1,15,200 shares @ Rs.2 per share and 4,800 share failed to pay)

	Equity Share Capital A/c ( 4,800× 10)	Dr.		48,000
	---------To Share First call A/c ( 4,800× 2)				9,600
	---------To Share Final call A/c ( 4,800× 2)				9,600
	---------To Share Forfeiture A/c ( 4,800× 6)				28,800
	(Being 4,800 shares forfeited for the non- payment of first call and final call)

	Bank A/c	Dr.		33,600
	Share Forfeiture A/c	Dr.		14,400
	---------To Equity Share Capital A/c				48,000
	(Being 4,800 shares reissued@ Rs.7 per share, fully paid up)

	Share Forfeiture A/c	Dr.		14,400
	---------To Capital Reserve A/c				14,400
	(Being share forfeiture balance of 4,800 shares transferred to capital reserve account)

Himalaya Company Limited
Balance Sheet
Particulars	Note No.	Rs.
I. Equity and Liabilities
1. Shareholders' Fund
a. Share capital	1	12,00,000
b. Reserve and Surplus	2	2,54,400
2. Non - Current Liabilities
3. Current Liabilities
Total		14,54,400
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	14,54,400
Total		14,54,400

NOTES TO ACCOUNT

Note No.	Particulars		Rs.
1	Share Capital
	Authorized Share Capital
	-------Share of Rs. 10 each
	Issued share Capital
	-------1,20,000 share of Rs. 10 each		12,00,000
	Subscribed, Called-up and paid-up Share Capital
	-------1,20,000 Share of Rs. 10 each,		12,00,000

2	Other Non-Current Assets
	-------Securities Premium	2,40,000
	-------Capital Reserve	14,400	2,54,400

3	Cash and Cash Equivalents
	-------Cash at Bank		14,54,400

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		2,25,000
	--------- To Share Application A/c				2,25,000
	(Being 75,000 share Rs.3 each received on application money)

	Share Application A/c	Dr.		2,25,000
	--------- To Share Capital A/c				1,50,000
	--------- To Share Allotment A/c				75,000
	(Being equity 50,000 share Rs.3 each application adjusted on allotment)

	Share Allotment A/c	Dr.		2,00,000
	-------- To Share Capital A/c				1,00,000
	-------- To Securities Premium A/c				1,00,000
	(Being equity share allotment due on 50,000 shares)

	Bank A/c	Dr.		1,23,000
	Calls-in-Arrears A/c			2,000
	-------- To Share Allotment A/c				1,25,000
	(Being share allotment money received)

	Share First Call A/c	Dr.		1,00,000
	-------- To Share Capital A/c				1,00,000
	(Being first call money due on 50,000 shares Rs.2 each)

	Bank A/c	Dr.		98,400
	Calls-in-Arrears A/c	Dr.		1,600
	-------- To Share First A/c				1,00,000
	(Being 800 shares Rs.2 each call money received)

	Share Capital A/c	Dr.		5,600
	Securities Premium A/c			1,600
	-------- To Calls-in-Arrears A/c				3,600
	-------- To Share Forfeiture A/c				3,600
	(Being 800 shares forfeited for non-payment of allotment and call money)

	Bank A/c	Dr.		9,600
	-------- To Share Capital A/c				5,600
	-------- To Securities Premium A/c				4,000
	(Being 800 shares forfeited for non-payment of allotment and call money)

	Share Forfeiture A/c	Dr.		3,600
	-------- To Capital Reserve A/c				3,600
	(Being profit on reissue transferred to capital reserve)

Working Notes:

2.

Calculation of Amount Received on Allotment

Total allotment due on Sonu's Shares (800 × Rs.4) = 3,200

Excess application money from Sonu adjusted towards allotment = 1,200

Amount not received from Sonu = 2,000

Total Amount due on Allotment @ 50,000 shares	=	2,00,000
Less: Excess application money adjusted	=	(75,000)
Less: Amount not received from Sonu	=	(2,000)
Amount received on allotment	=	1,23,000

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Equity Share Application A/c	Dr.		24,00,000
	-------- To Equity Share Capital A/c				24,00,000
	(Being application money transferred to share capital)

	Equity Share Allotment A/c	Dr.		32,00,000
	-------- To Equity Share Capital A/c				16,00,000
	-------- To Securities Premium Reserve A/c				16,00,000
	(Being allotment money due)

	Equity Share First and Final Call A/c	Dr.		40,00,000
	-------- To Equity Share Capital A/c				40,00,000
	(Being first call money due)

	Equity Share Capital A/c	Dr.		60,000
	Securities Premium Reserve A/c	Dr.		4,000
	-------- To Equity Share Allotment A/c				8,000
	-------- To Equity Share First and Final Call A/c				30,000
	-------- To Equity Share Forfeiture A/c				26,000
	(Being 600 shares forfeited for non - payment of allotment and call money due)

	Equity Share Forfeiture A/c	Dr.		12,000
	-------- To Equity Share Capital A/c				12,000
	(Being 600 shares reissued)

	Equity Share Forfeiture A/c	Dr.		14,000
	-------- To Capital Reserve A/c				14,000
	(Being profit on reissue of transferred to capital reserve)

Cash Book
Dr.					Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.

	To Equity Share Application A/c	24,00,000		By Balance c/d	96,10,000
	(80,000 × Rs.30)
	To Equity Share Allotment A/c	31,92,000
	(79,900 × Rs.40)
	To Equity Share First Call A/c (79,400 × Rs.50)	39,70,000
	To Equity Share Capital A/c	48,000
	(600 × Rs.80)

		96,10,000			96,10,000

Books of Jeevan Dhara Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		3,00,000
	-------- To Equity Share Application A/c				3,00,000
	(Being application money received on 1,50,000 shares)

	Equity Share Application A/c	Dr.		3,00,000
	-------- To Equity Share Capital A/c				2,40,000
	-------- To Equity Share Allotment A/c				60,000
	(Being amount of application transferred to share capital and excess money adjusted towards allotment)

	Equity Share Allotment A/c	Dr.		6,00,000
	-------- To Equity Share Capital A/c				3,60,000
	-------- To Securities Premium A/c				2,40,000
	(Being account due on allotment)

	Bank A/c	Dr.		5,29,200
	-------- To Equity Share Allotment A/c				5,29,200
	(Being amount received on share allotment)

	Equity Share First and Final Call A/c	Dr.		6,00,000
	-------- To Equity Share Capital A/c				6,00,000
	(Being amount due on first and final call)

	Bank A/c			5,76,000
	-------- To Equity Share First and Final Call A/c	Dr.			5,76,000
	(Being amount received on first and final call

	Equity Share Capital A/c	Dr.		48,000
	Securities Premium a/c	Dr.		4,800
	-------- To Equity Share Forfeiture A/c				18,000
	-------- To Equity Share Allotment A/c				10,800
	-------- To Equity Share First and Final Call A/c				24,000
	(Being shares of Manu and Madhur were forfeited)

	Bank A/c	Dr.		43,200
	Equity Share Forfeiture A/c	Dr.		4,800
	-------- To Equity Share Capital A/c				48,000
	(Being forfeited shares were reissued for Rs.9 as fully paid-up)

	Equity Share Forfeiture A/c	Dr.		13,200
	-------- To Capital Reserve A/c				13,200
	(Being excess amount on forfeiture is transferred to capital reserve)

Working Notes:

1.

Calculation of amount not received on Allotment and First and Final Call money

Amount received on 3,000 shares of Rs.2 each ( 3,000 × 2)= Rs.6,000

Amount transferred to Share Capital Account (2,400 × Rs.2) = Rs.4,800

Excess application money received = Rs.1,200

Allotment money due @ Rs.5 each (7,200 + 4,800) = Rs.12,000

Not received on allotment (7,200 - 1,200) = Rs.6,000

Securities Premium not received = Rs.4,800

First and final call money not received = (2,400 × Rs.5) = Rs.12,000

2.

Calculation of amount not received from Madhur

First and final call money not received = (2,400 × Rs.5)= Rs.12,000

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c (1,50,000 × 2)	Dr.		3,00,000
	To Share Application A/c				3,00,000
	(Application money received on 1,50,000 shares)

	Share Application A/c	Dr.		3,00,000
	To Share Capital A/c				1,00,000
	To Share Allotment A/c				1,10,000
	To Bank A/c				90,000
	(Application money transferred to Share Capital)

	Share Allotment A/c (50,000 × 4)			2,00,000
	To Share Capital A/c				2,00,000
	(Allotment money due on 50,000 shares)

	Bank A/c	Dr.		88,900
	To Share Allotment A/c (WN 2)				88,900
	(Allotment money received)

	Share Capital A/c (600 × 6)	Dr.		3,600
	To Share Allotment A/c (1,000 + 100)				1,100
	To Share Forfeiture A/c (2,000 + 500)				2,500
	(600 shares forfeited for non-payment of allotment money)

	Share First and Final Call A/c	Dr.		1,97,600
	To Share Capital A/c				1,97,600
	(Call money due on 49,400 shares)

	Bank A/c	Dr.		1,97,600
	To Share First and Final Call A/c				1,97,600
	(Call money received)

	Bank A/c (600 × 11)	Dr.		6,600
	To Share Capital A/c				6,000
	To Security Premium Reserve A/c				600
	(600 shares re-issued at Rs.11 per share)

	Share Forfeiture A/c	Dr.		2,500
	To Capital Reserve A/c				2,500
	(Profit on re-issue transferred to Capital Reserve)

Working Notes:

WN1: Computation Table

Categories	Shares Applied	Shares Allotted	Money received on Application @ Rs.2 each	Money transferred to Share Capital @ Rs.2 each	Excess Application Money	Amount adjusted on Allotment	Money refunded
I	80,000	40,000	1,60,000	80,000	80,000	80,000	-
II	25,000	10,000	50,000	20,000	30,000	30,000	-
III	45,000	-	90,000	-	-	-	90,000
	1,50,000	50,000	3,00,000	1,00,000	1,10,000	1,10,000	90,000

WN2: Calculation of Amount Received on Allotment

Amount Due on Allotment	2,00,000
Less: Excess Received	1,10,000
Balance to be Received	90,000
Less: Amount not paid by Deepak	(1,000)
Less: Amount not paid by Raju	(100)
*Amount received on Allotment*	88,900

WN3: Calculation of Shares Applied/Allotted

*Amount not paid by Deepak on Allotment*
Amount received on Application	2,000
Less: Transferred to Share Capital	(1,000)
Excess received on Application	1,000
Amount due on allotment	2,000
Less: Excess adjustment	(1,000)
*Amount unpaid by Deepak*	1,000

*Amount not paid by Raju on Allotment*
Amount received on Application	500
Less: Transferred to Share Capital	(200)
Excess received on Application	300
Amount due on allotment	400
Less: Excess adjustment	(300)
*Amount unpaid by Raju*	100

Authorised capital 2,000 shares of Rs.100 each

Issued 1,000 shares of Rs.100 each at a premium of Rs.5

Applied 1,800 shares

Allotment made as :
Applied	Allotted
1,500	1,000
300	NIL

1,800	1,000

Payable as :
Total	Rs.105
Called-up	Rs.75

Books of XYZ Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Application A/c	Dr.		15,000
	-------- To Share Capital A/c				10,000
	-------- To Shares Allotment A/c				5,000
	(Being application money of 1,000 shares transferred to share capital 5,000 adjusted on allotment)

	Equity Share Allotment A/c	Dr.		25,000
	-------- To Equity Share Capital A/c				20,000
	-------- To Securities Premium A/c				5,000
	(Being allotment due on 1,000 shares at Rs.25 each including 5 premium)

	Share First Call A/c	Dr.		40,000
	-------- To Share Capital A/c				40,000
	(Being first call due on 1,000 shares at Rs.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
	(Being 100 shares of Rs.100 each Rs.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
	(Being 100 shares of Rs.100 each re-issued at Rs.60 per share Rs.70 paid up)

	Share forfeiture A/c	Dr.		500
	-------- To Capital Reserve A/c				500
	(Being balance in share forfeiture after re-issue transferred to capital reserve)

Cash Book
Dr.					Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.

	To Share Application A/c	18,000		By Share Application A/c	3,000
	To Share Allotment A/c	18,000		By Balance c/d	75,000
	To Share First Call A/c	36,000
	To Share Capital A/c	6,000


		78,000			78,000

On Account of Sunder
Money received on application (150 × Rs.10)	=	1,500
Less: Money transferred to Share Capital (100 × Rs.10)	=	(1,000)
Excess Money on application		500

Share allotment due 100 × Rs.25	=	2,500
Less: Excess money on application	=	(500)
Calls-in-Arrears on Allotment		2,000

Allotment
Allotment due on all shares 1,000 × Rs.25	=	25,000
Less: Adjustment of excess money on application	=	(5,000)
Less: Calls-in-Arrears By Sunder	=	(2,000)
Money received on allotment	=	18,000

Capital Reserve

Capital Reserve = Share Forfeiture (Cr.) - Share Forfeiture (Dr.)

= 1,500 - 1,000 = Rs.500

In the books of A Ltd. Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
(i)	Bank A/c	Dr.		4,80,000
	To Equity Share Application A/c				4,80,000
	(Being application money received on 1,60,000 shares)

(ii)	Equity Share Application A/c	Dr.		4,80,000
	To Equity Share Capital A/c				3,00,000
	To Equity Share Allotment A/c				1,50,000
	To Calls in Advance A/c				30,000
	(Being application money received transferred to Share Capital, to be adjusted on allotment and calls)

(iii)	Equity Share Allotment A/c (3×1,00,000)	Dr.		3,00,000
	To Equity Share Capital A/c (2×1,00,000)				2,00,000
	To Securities Premium Reserve A/c (1×1,00,000)				1,00,000
	(Being allotment made due on 1,00,000 shares)

(iv)	Bank A/c	Dr.		1,47,300
	Calls in Arrears A/c (WN1)	Dr.		2,700
	To Equity Share Allotment A/c (3×50,000)				1,50,000
	(Being allotment money received except 1,200 shares of Rishabh)

(v)	Equity Share First Call A/c (3×1,00,000)	Dr.		3,00,000
	To Equity Share Capital A/c (3×1,00,000)				3,00,000
	(Being share first call money due on 1,00,000 shares)

(vi)	Bank A/c	Dr.		2,64,600
	Calls in Advance A/c	Dr.		30,000
	Calls in Arrears A/c (WN)	Dr.		5,400
	To Equity Share First Call A/c				3,00,000
	(Being first call money received)

(vii)	Equity Share Second and Final Call A/c (2×1,00,000)	Dr.		2,00,000
	To Equity Share Capital A/c				2,00,000
	(Being share second and final call money due on 1,00,000 shares)

(viii)	Bank A/c	Dr.		1,96,000
	Calls in Arrears A/c(2×2,000)	Dr.		4,000
	To Equity Share Second and Final Call A/c				2,00,000
	(Being share second and final Call money received)

(ix)	Share Capital A/c (2,000×10)	Dr.		20,000
	Securities Premium Reserve A/c (1×1,200)	Dr.		1,200
	To Calls in Arrears A/c (2,700 + 5,400 + 4,000)				12,100
	To Share Forfeiture A/c				9,100
	(Being 2000 shares of Rishabh and Sudha forfeited due to non-payment of allotment and call money)

(x)	Bank A/c (7×2,000)	Dr.		14,000
	Share Forfeiture A/c	Dr.		6,000
	To Share Capital A/c (10×2000)				12,000
	(Being 2000 forfeited shares of Rishabh and Sudha reissued as fully paid-up)

(xi)	Share Forfeiture A/c (9,100 - 6,000)	Dr.		3,100
	To Capital Reserve A/c				3,100
	(Being amount forfeited transferred to Capital Reserve)

Working Note:

Note No.	Particulars	Amount (Rs.)
1	Amount not paid by Rishabh (Calls in Arrears)
	Allotment Due on Rishabh's Shares (3×1,200)	3,600
	Less: Excess on Application 3×(1500-1200)	900
		2,700
	#No. of Shares allotted to Rishabh = 1,500×40,000/50,000 =1,200

2	Amount not paid in respect of First Call (Calls in Arrears)
	First call Due (3×2000)-i.e. on 800 and 1,200 shares	6,000
	Less: Excess on Application on Sudha's Shares 3×(1800- 800)-2,400 i.e. adjusted on allotment	600
		5,400

Pro Rata Table
Shares Applied for (Rs.3)		Shares Allotted (Rs.3)		Allotment (Rs.3)	First Call (Rs.3)	Second and Final Call (Rs.2)	Refund
Units	Rs.	Units	Rs.	Rs.	Rs.	Rs.	Rs.
90,000	2,70,000	40,000	1,20,000	1,20,000	30,000	-	Nil
50,000	1,50,000	40,000	1,20,000	30,000	-	-	Nil
20,000	60,000	20,000	60,000	-	-	-	Nil
1,60,000	4,80,000	1,00,000	3,00,000	1,50,000	30,000

Issued capital 40,000 shares of Rs.10 each at premium of Rs.2

Applied 60,000 shares

Allotment made as :
Applied	Allotted
48,000	40,000
12,000	NIL
60,000	40,000

Payable as :
Total Called-up(10 +2)	Rs.25

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		1,20,000
	--------- To Equity Share Application A/c				1,20,000
	(Being share application money received for 60,000 shares at Rs.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
	(Being equity share application of 40,000 shares transferred to share capital 16,000 on adjusted 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
	(Being equity share allotment due on 40,000 shares at Rs.5 each including Rs.2 premium)

	Bank A/c	Dr.		1,76,640
	-------- To Equity Share Allotment A/c				1,76,640
	(Being share allotment money 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
	(Being first call money due on 40,000 shares at Rs.2 each)

	Bank A/c	Dr.		72,800
	-------- To Equity Share First Call A/c				72,800
	(Being first call received on 36,400 shares and holder 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
	(Being second and final call due on 40,000 shares at Rs.3 each)

	Bank A/c	Dr.		1,09,200
	-------- To Equity Share Second and Final Call A/c				1,09,200
	(Being 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
	(Being 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
	(Being 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
	(Being 3,600 shares of Rs.10 each re-issued at Rs.8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		6,640
	-------- To Capital Reserve A/c				6,640
	(Being balance in share forfeiture transferred to capital reserve)

Working Notes:

1.

Money received on Application (1,920 × Rs.2)	=	3,840
Less: Application money transferred to Share Capital (1,600 × Rs.2)	=	3,200
Excess money on Application	=	Rs.640

Calls-in-Arrears on Allotment = Share Allotment due (1,600 shares × Rs.5) - Excess money on Application

= 8,000 - 640 = Rs.7,360

Share Allotment
Share Allotment due (40,000 × Rs.5)	2,00,000
Less : Excess money on Application	(16,000)
Less : Calls-in-Arrears by Ram	(7,360)
Money received on Allotment	Rs.1,76,640

Share First Call
Share First Call due (40,000 × Rs.2)	80,000
Less : Calls-in-Arrears by Ram and Shyam (3,600 × Rs.2)	(7,200)
Money received on First Call	Rs.72,800

Share Final Call
Share Final Call due (40,000 × Rs.3)	1,20,000
Less: Calls-in-Arrears by Ram and Shyam (3,600 × Rs.3)	10,800
Money received on Second and Final Call	Rs.1,09,200

2.

Calculation of Capital Reserve

Capital Reserve
Share Forfeiture on Ram's Shares Cr. (money received on application)	3,840
Add: Share Forfeiture on Shyam's Shares (2,000 × Rs.5)	10,000
Less: Share Forfeiture Dr.	(7,200)
Capital Reserve	6,640

Issued Shares 50,000 of 10 each at premium of Rs.2

Applied share 65,000

Allotment made as
Applied	Allotted
60,000	50,000
5,000	NIL
65,000	50,000

Payable as :
Total Called-up (10 + 2)	Rs.12

Cash Book
Dr.					Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.

	To Equity Share Application A/c	3,25,000		By Equity Share Application A/c	25,000
	To Equity Share Allotment A/c	1,47,900		By Balance c/d	6,02,100
	To Equity Share First and Final Call A/c	1,47,900
	To Equity Share Capital A/c	6,300

		6,27,100			6,27,100

In the books of Competent Ltd.
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Equity Share Application A/c	Dr.		3,00,000
	-------- To Equity Share Capital A/c				1,50,000
	-------- To Securities Premium A/c				1,00,000
	-------- To Shares Allotment A/c				50,000
	(Being application money of 50,000 shares transferred to share capital at Rs.3 each and to premium Rs.2 each 50,000 adjusted on allotment)

	Equity Share Allotment A/c	Dr.		2,00,000
	-------- To Equity Share Capital A/c				2,00,000
	(Being allotment due on 50,000 shares at Rs.4 each)

	Equity Share First and Final Call A/c	Dr.		1,50,000
	-------- To Equity Share Capital A/c				1,50,000
	(Being first call due on 50,000 shares at Rs.3 each)

	Equity Share Capital A/c	Dr.		7,000
	-------- To Share Forfeiture A/c				2,800
	-------- To Equity Share Allotment A/c				2,100
	-------- To Equity Share First and Final Call A/c				2,100
	(Being 700 shares of Rs.10 each forfeited for the non-payment of amount due)

	Share Forfeiture A/c	Dr.		700
	-------- To Equity Share Capital A/c				700
	(Being loss on issue 1 on 700 shares charged from the share forfeiture account)

	Share forfeiture A/c	Dr.		2,100
	-------- To Capital Reserve A/c				2,100
	(Being balance in share forfeiture after re-issue transferred to capital reserve)

Working Note:

Money received on Application (840 × Rs.5)	=	4,200
Less : Money transferred to Share Capital (700 × Rs.3)	=	(2,100)
		2,100
Less : Securities Premium (700 × Rs.2)	=	(1,400)
Excess money on Application		700

Allotment due (700 × Rs.4)	=	2,800
Less : Excess money on Application		(700)
Calls-in-Arrears on Allotment		2,100

Share Allotment
Share Allotment due (50,000 × Rs.4)	=	2,00,000
Less : Excess money on Application	=	(50,000)
		1,50,000
Less : Calls-in-Arrears	=	(2,100)
Money received on Application		1,47,900

Share First and Final Call
Share First and Final Call due (50,000 × Rs.3)	=	1,50,000
Less : Calls-in-Arrears on (700 × Rs.3)	=	(2,100)
Money received on First and Final Call		1,47,900

Capital Reserve
Money received on Application from Mr. Sharma Cr.	=		4,200
Less : Securities Premium (700 × Rs.2)	=	(1,400)
Less: Share forfeiture Dr. (700 × Rs.1)	=	(700)
Capital Reserve		2,100

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c (1,80,000 × 6)	Dr.		10,80,000
	To Equity Share Application A/c				10,80,000
	(Application money received on 1,80,000 shares)

	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 to Share Capital)

	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 on 1,60,000 shares)

	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 and Final Call A/c				12,800
	To Equity Share Forfeiture A/c				17,200
	(200 shares forfeited for non-payment of allotment money including premium of Rs.3)

	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
	(Profit on re-issue transferred to Capital Reserve)

Working Notes:

*Amount not paid by Aditya on Allotment*
Amount received on Application	20,400
Less: Transferred to Share Capital	(19,200)
Excess received on Application	1,200
Amount due on allotment	9,600
Less: Excess adjustment	(1,200)
*Amount unpaid by Aditya*	8,400

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		2,10,000
	-------- To Equity Share Application A/c				2,10,000
	(Being application money on 70,000 shares received

	Equity Share Application A/c	Dr.		2,10,000
	-------- To Equity Share Capital A/c				1,50,000
	-------- To Equity Shares Allotment A/c				60,000
	(Being application money of 50,000 shares transferred to share capital account and excess was utlised on allotment)

	Equity Share Allotment A/c	Dr.		2,50,000
	-------- To Equity Share Capital A/c				2,50,000
	(Being allotment due on allotment)

	Bank A/c	Dr.		1,88,100
	-------- To Equity Share Allotment A/c				1,88,100
	(Being share allotment received on 49,500 shares and Rs 60,000 excess money adjusted)

	Equity Share Capital A/c	Dr.		4,000
	-------- To Equity Share Allotment A/c				1,900
	-------- To Equity Share Forfeiture A/c				2,100
	(Being 500 shares forfeited for non-payment of allotment money)

	Equity Share First and Final Call A/c	Dr.		99,000
	-------- To Equity Share Capital A/c				99,000
	(Being share Call money due)

	Bank A/c	Dr.		99,000
	-------- To Equity Share First and Final Call A/c				99,000
	(Being call money received on 49,000 shares)

	Equity Share Capital A/c	Dr.		5,000
	-------- To Equity Share First and Final Call A/c				1,000
	-------- To Equity Share Forfeiture A/c				4,000
	(Being 500 shares forfeited for non-payment of call money)

	Bank A/c	Dr.		7,200
	Equity Share Forfeiture A/c	Dr.		1,800
	-------- To Equity Share Capital A/c				9,000
	(Being 900 shares reissued at Rs.8 per share)
	(Being share call money received and Calls-in -advance money adjusted)

	Share Forfeiture A/c	Dr.		3,500
	-------- To Capital Reserve A/c				3,500
	(Being profit on forfeiture of shares transferred)

Working Notes:

Application Money received from Ramesh (700 × Rs.3)	2,100
Less: Application money due on allotted shares (500 × Rs.3)	(1,500)
Excess application money adjusted on allotment	600

Allotment money due on Share allotted (Rs.5 × 500)	2,500
Less : Excess application money received	(600)
Allotment money due but not received	1,900
2
Allotment due (Gross) (50,000 × Rs.5)	2,50,000
Less : Adjusted	(60,000)
Less : Calls-in-Arrears	(1,900)
	1,88,100

3
Forfeiture of 500 shares issued to Adhar
Amount due on First and Final Call (Rs.2 × 500) =1,000
Total amount due on First and Final Call (Rs.2 × 49,500)	99,000
Less : Calls-in-Arrears	(1,000)
	98,000

Share Forfeiture on Ramesh's	2,100
Properties Share Forfeiture on Adhar's Shares	3,200
	5,300
Less: Loss on re-issue	(1,800)
Profit on re-issue transferred capital reserve	3,500

Journal
Date	Particulars			L.F.	Debit Rs.	Credit Rs.
	Bank A/c		Dr.		60,000
		To Share Application A/c				60,000
	(Application money received on 30,000 shares @ Rs.2 per share)


	Share Application A/c		Dr.		60,000
		To Share Capital A/c				40,000
		To Share Allotment A/c				20,000
	(Application money received transferred to Share Capital and adjusted on allotment)


	Share Allotment A/c		Dr.		1,00,000
		To Share Capital A/c				40,000
		To Securities Premium A/c				60,000
	(Allotment money due on 20,000 shares @ Rs.5 per share including premium of Rs.3 per share)


	Bank A/c (1,00,000 - 20,000 - 1,600)		Dr.		78,400
		To Share Allotment A/c				78,400
	(Allotment money received)


	Share First Call A/c		Dr.		60,000
		To Share Capital A/c				60,000
	(Share First Call due on 20,000 shares @ Rs.3 per share)


	Bank A/c (60,000 - 1,200 - 1,800)		Dr.		57,000
		To Share First Call A/c				57,000
	(First call money received)

	Share Capital A/c		Dr.		2,800
	Share Premium A/c		Dr.		1,200
		To Share Forfeiture A/c				1,200
		To Share Allotment A/c				1,600
		To Share First Call A/c				1,200
	(400 shares forfeited)


	Share Second Call A/c		Dr.		58,800
		To Share Capital A/c				58,800
	(Final call money due on 19,600 shares @ 3 per share)


	Bank A/c (58,800 - 1,800)		Dr.		57,000
		To Share Second Call A/c				57,000
	(Second call money received)


	Share Capital A/c		Dr.		6,000
		To Share Forfeiture A/c				2,400
		To Share First Call A/c				1,800
		To Share Second Call A/c				1,800
	(600 shares forfeited)


	Bank A/c		Dr.		7,200
	Share Forfeiture A/c		Dr.		800
		To Share Capital A/c				8,000
	(800 shares reissued @ Rs.9 each)


	Share Forfeiture A/c		Dr.		2,000
		To Capital Reserve				2,000
	(Profit on re-issue transferred to Capital Reserve)

Balance Sheet
Particulars	Note No.	Amount (Rs.)
I. Equity and Liabilities
1. Shareholders' Fund
a. Share Capital	1	1,98,800
b. Reserves and Surplus	2	60,800
2. Non-Current Liabilities
3. Current Liabilities
Total		2,59,600

II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	3	2,59,600
Total		2,59,600

NOTES TO ACCOUNTS

Note No.	Particulars		Rs.
1	Share Capital
	Authorised Share Capital
	…….. shares of Rs.10 each		-
	Issued Share Capital
	20,000 shares of Rs.10 each		2,00,000
	Subscribed, Called-up and Paid-up Share Capital
	19,800 shares of Rs.10 each	1,98,000
	Add: Share Forfeiture (200 × 4)	800	1,98,800

2	Reserves and Surplus
	Securities Premium	58,800
	Capital Reserve	2,000	60,800

3	Cash and Cash Equivalents
	Cash at Bank		2,59,600

Working Notes:

WN1: Calculation of unpaid amount on allotment by Mohit

Money received on Application		(600×2)	1,200
	Less: Adjusted on application	(400×2)	(800)
Excess amount received			400

Amount due on Allotment		(400×5)	2,000
	Less: Excess amount received		(400)
Amount unpaid on allotment			1,600

WN2: Calculation of Amount to be transferred to Capital Reserve

Amount forfeited on Mohit's 400 shares (600 × 2)	1,200
Amount forfeited on Jolly's 400 shares (400 × 4)	1,600
Total Credit Balance in Share Forfeiture	2,800
Less: Discount allowed on 800 shares reissued	(800)
Amount to be transferred to Capital Reserve	2,000

Issued 50,000 equity Share of Rs.10 each

Applied 75,000 shares

Allotment made as :
Applied	Allotted
40,000	30,000
35,000	20,000

Payable as :
Total called-up	Rs.10

Books of XYZ Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		2,25,000
	--------- To Equity Share Application A/c				2,25,000
	(Being share application money received for 75,000 shares at Rs.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
	(Being equity share application 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
	(Being equity share allotment due on 50,000 shares at Rs.4 per share each )

	Bank A/c	Dr.		1,21,400
	-------- To Equity Share Allotment A/c				1,21,400
	(Being equity share allotment money received from 48,800 shares after adjusting excess money on application)

	Equity Share Capital A/c (1,200 × Rs.7)	Dr.		8,400
	-------- To Share Forfeiture A/c				4,800
	-------- To Equity Share Allotment A/c				3,600
	(Being 1,200 shares of Rs.10 each Rs.7 called-up forfeited for the nonpayment of allotment

	Equity Share First and Final Call A/c	Dr.		1,46,400
	-------- To Equity Share Capital A/c				1,46,400
	(Being first and final call due on 48,800 shares at Rs.3 each)

	Bank A/c	Dr.		1,45,200
	-------- To Equity Share First and Final Call A/c				1,45,200
	(Being share first and call received 48,800 Shares at Rs.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
	(Being 400 shares forfeited for 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
	(Being 1,000 shares of Rs.10 each re-issued at Rs.8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		3,200
	-------- To Capital Reserve A/c				3,200
	(Being balance of 1,000 re-issued shares in share forfeiture account transferred to capital reserve account)

Working Notes:

1.

Money received on Application (1,600 shares × Rs.3)	=	4,800
Money adjusted on Application (1,200 Shares × Rs.3)	=	3,600
Excess on Application		1,200

Allotment due on (1,200 × Rs.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 × Rs.4	=	2,00,000
Less: Excess money on application	=	(75,000)
Less: Calls-in-Arrears on Allotment	=	(3,600)
Money received on Allotment	=	1,21,400

2.

First and Final Call
First and Final Call due (48,800 × Rs.3)	=	1,46,400
Less: Calls-in-Arrears by Shamu (400 shares × Rs.3)	=	1,200
Money received on of First and Final Call		1,45,200

3.

Calculation Capital Reserve

Capital Reserve

Shares reissued out the shares forfeited from Ramu = 1,000 shares - Shamu's shares

= 1,000 - 400

= 600 shares on re-issue Ramu's shares

Capital Reserve on re-issue of 600 shares forfeited from Ramu
Share Forfeiture Cr.		4
Less: Share forfeiture Dr.		(2)
Share Forfeiture after re-issued		2

Capital Reserve after re-issue of 600 shares

= Share Forfeiture after re-issue (per share) × 600 shares

=Rs.2 × 600= Rs.1,200

On re-issue of Shamu's Shares

Share Forfeiture Cr.		Rs.7
Less: Share Forfeiture Dr.		Rs.2
Share Forfeiture after re-issue		Rs.5

Capital Reserve after re-issue of 400 shares

= Share Forfeiture after re-issue (per share) × 600 shares

= Rs.5 × 400 = Rs.2,000

Total amount of Capital Reserve = Capital Reserve of 600 Shares + Capital Reserve of 400 shares= Rs.1,200 + Rs.2,000 = Rs.3,200

Issued Capital 2,000 shares of Rs.10 each at premium of Rs.2

Applied shares 3,000

Allotment as:
Applied	Allotted
2,400	2,000
600	NIL
3,000	2,000

Payable as :
Total Called - up (10+2)	Rs.10

In the books of Super Star Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		9,000
	-------- To Share Application A/c				9,000
	(Being share application money received for 3,000 shares at Rs.3 per share including Rs.1 premium)

	Share Application A/c	Dr.		9,000
	-------- To Share Capital A/c				4,000
	-------- To Securities Premium A/c				2,000
	-------- To Share Allotment A/c				1,200
	-------- To Bank A/c				1,800
	(Being share application money of 2,000 shares transferred to Share Capital and securities premium at Rs.2 and Rs.1 each respectively, 1,800 adjusted on allotment and remaining 1,200 refunded)

	Share Allotment A/c	Dr.		8,000
	-------- To Share Capital A/c				6,000
	-------- To Securities Premium A/c				2,000
	(Being allotment due on 2,000 shares at Rs.4 per share including 1 premium)

	Bank A/c	Dr.		6,664
	-------- To Share Allotment A/c				6,664
	(Being allotment received for 1960 shares after adjusting of excess application money)

	Share First Call A/c	Dr.		6,000
	-------- To Share Capital A/c				6,000
	(Being first call due on 2,000 shares of at Rs.3 per share)

	Bank A/c	Dr.		5,700
	-------- To Share First Call A/c				5,700
	(Being share first call received for 1,900 shares)

	Share Capital A/c	Dr.		320
	Securities Premium A/c	Dr.		40
	-------- To Share Forfeiture A/c (144-40)				104
	-------- To Share Allotment A/c				136
	-------- To Share First Call A/c				120
	(Being 40 shares of Rs.10 each , Rs.8 called up for non-payment of money due on allotment and first including Rs.1 premium)

	Share Final Call A/c	Dr.		3,920
	-------- To Share Capital A/c				3,920
	(Being final call due on 1,960 shares at Rs.2 each)

	Bank A/c	Dr.		3,800
	-------- To Share Final Call A/c				3,800
	(Being final call received for 1,900 shares)

	Share Capital A/c	Dr.		600
	-------- To Share Forfeiture A/c				300
	-------- To Share First Call A/c				180
	-------- To Share Final Call A/c				120
	(Being 60 shares forfeited for the non-payment of first call and final call money)

	Bank A/c	Dr.		720
	Share Forfeiture A/c	Dr.		80
	-------- To Share Capital A/c				800
	(Being 80 shares of Rs.10 each re-issued at Rs.9 per share fully paid-up)

	Share Forfeiture A/c	Dr.		224
	-------- To Capital Reserve A/c				224
	(Being balance in share forfeiture account of 80 re-issued shares transferred to capital reserve)

Working Notes:

1.

Money received on Application (48 × Rs.3)	=	144
Less: Application money adjusted to Share Capital (40 × Rs.2)	=	(80)
		64
Less: Securities Premium (40 × Rs.1)	=	(40)
Excess money Application		Rs.24

Allotment due (40 × Rs.4)	=	160
Less: Excess money on Application	=	(24)
Calls-in-Arrears		Rs.136

Share Allotment
Money due on Allotment (2,000 × Rs.4)	8,000
Less: Excess application money adjusted	(1,200)
	6,800
Less: Calls-in-Arrears	(136)
Money received on Allotment	Rs.6,664

Share First Call
Money due on First Call (2,000 × Rs.3)	6,000
Less: Calls-in-Arrears for Ramesh (40 × Rs.3)	(120)
	5,880
Less: Calls-in-Arrears on Rajesh (60 × Rs.3)	(180)
Money received on First Call	Rs.5,700

Share Final Call
Money due on Final Call (1,960 × Rs.2)	3920
Less: Calls in Arrest on Rajesh (60 × Rs.2)	(120)
Money received on Final Call	Rs.3,800

2.

Calculation of Capital Reserve

Capital Reserve
On Ramesh's Shares
Money received from Ramesh	144
Less: Securities Premium (40 shares × Rs.1)	400
Less: Share Forfeiture Dr. (40 × Rs.1)	(40)
Capital Reserve of Ramesh	Rs.64

On Rajesh's Share
Share Forfeiture Cr.	Rs.5
Share Forfeiture Dr.	(Rs.1)
Share Forfeiture after re-issue	Rs.4

Capital Reserve on Rajesh's Shares

= Share Forfeiture after re-issue × No. of shares re-issued

= Rs.4 × 40 = Rs.160

3.

Calculation of Total on Capital Reserve

Total Capital Reserve

= Capital Reserve of 40 shares of Ramesh + Capital Reserve of 40 shares of Rajesh

= Rs.64 + 160 = Rs.224

Issued Capital 2,00,000 shares of Rs.10 each

Applied shares 3,00,000

Allotment made as :
Applied	Allotted
2,00,000	1,50,000
1,00,000	50,000
3,00,000	2,00,000

Payable as :
Total called - up	Rs.10

In the books of Bharat Limited
Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Bank A/c	Dr.		9,00,000
	-------- To Equity Share Application A/c				9,00,000
	(Being share application money received for 3,00,000 shares at Rs.3 each)

	Equity Share Application A/c	Dr.		9,00,000
	-------- To Equity Share Capital A/c				6,00,000
	-------- To Equity Share Allotment A/c				3,00,000
	(Being share application money of 2,00,000 shares at Rs.3 each transferred to shares capital and excess money 3,00,000 adjusted on allotment)

	Equity Share Allotment A/c	Dr.		10,00,000
	-------- To Equity Share Capital A/c				10,00,000
	(Being allotment due on 2,000 shares at Rs.4 per share)

	Bank A/c	Dr.		6,88,000
	-------- To Equity Share Allotment A/c				6,88,000
	(Being allotment received for 1,97,000 shares)

	Equity Share Capital A/c	Dr.		24,000
	-------- To share Forfeiture A/c				12,000
	-------- To Share Allotment A/c				12,000
	(Being 300 shares forfeited for the non-payment of money due on allotment)

	Equity Share First and Final Call A/c	Dr.		3,94,000
	-------- To Equity Share Capital A/c				3,94,000
	(Being first and final call due on 1,97,000 shares at Rs.2 per share)

	Bank A/c	Dr.		3,92,000
	-------- To Equity Share First and Final Call A/c				3,92,000
	(Being share first and final call received for 1,97,000 shares)

	Share Capital A/c	Dr.		10,000
	-------- To Share Forfeiture A/c				8,000
	-------- To Equity Share First and Final Call A/c				2,000
	(Being 1,000 shares forfeited for the non-payment of first and final call)

	Bank A/c	Dr.		28,000
	Share Forfeiture A/c	Dr.		7,000
	-------- To Equity Share Capital A/c				35,000
	(Being 3,500 shares of Rs.10 each re-issued at Rs.8 per share fully paid-up)

	Share Forfeiture A/c	Dr.		9,000
	-------- To Capital Reserve A/c				9,000
	(Being balance in share forfeiture account of 3,500 re-issued shares transferred to capital reserve)

Working Notes:

1.

Money received on Application (4,000 × Rs.3)	=	12,000
Less: Money transferred to Share Capital (3,000 × Rs.3)	=	(9,000)
Excess money on Application		3,000

Allotment due (3,000 × Rs.5)	=	15,000
Less: Excess money on application	=	(3,000)
Calls-in-Arrears on Allotment		12,000

Share Allotment
Money due an allotment (2,00,000 × Rs.5)	=	10,00,000
Less: Excess money on Application	=	(3,00,000)
		7,00,000
Less: Calls-in-Arrears on Bajaj's Share	=	(12,000)
Money received on Allotment	=	Rs.6,88,000

2.

Calculation Of Capital Reserve

Capital Reserve
Forfeiture of shares held by Bajaj
Share Forfeiture Cr.	=	4
Less: Share Forfeiture Dr. on re-issue	=	(2)
Share Forfeiture after re-issue Cr.		Rs.2

Capital Reserve on re-issue of Bajaj's Shares(no re-issued) = Rs.2 × 3,000 = Rs.6,000

Forfeiture of shares held by Sharma
Share Forfeiture Cr.	Rs.8
Less: Share Forfeiture Dr. on re-issue	Rs.2
Share Forfeiture after re-issue Cr.	Rs.6

Capital Reserve on re-issue of 500 Shares of Sharma(re-issued shares) = Rs.6 × 500 = Rs.3,000

Total Capital Reserve on 3,500 shares = Re-issued shares of Bajaj's + Re-issued shares of Sharma's = 6,000 + 3,000 = Rs.9,000

Applied Shares: 2,40,000
Allotment as :
Applied	Allotted
1,00,000	1,00,000
80,000	60,000
60,000	40,000
2,40,000	2,00,000

Payable as :

Total called-up (10 + 2)

Rs.12

Cash Book
Dr.							Cr.
Date	Particulars	L.F.	Rs.	Date	Particulars	L.F.	Rs.

	To Equity Share Application A/c (2,40,000 × 5)		12,00,000		By Balance c/d		23,95,000
	To Equity Share Allotment A/c (Note - 2)		5,93,900
	To Equity Share First Call A/c (Note 3)		3,93,800
	To Equity Share First Call A/c (1,96,900 shares × 1)		1,96,900
	To Equity Share Capital A/c (1,000 Share of category)		8,000
	To Equity Share Capital A/c (300 shares of category ii)		2,400

			23,95,000				23,95,000

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Equity Share Application A/c	Dr.		12,00,000
	-------- To Share Capital A/c				10,00,000
	-------- To Share Allotment A/c				2,00,000
	(Being share application money of 2,00,000 shares at Rs.5 each transferred to shares 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
	(Being allotment due for 2,00,000 shares at Rs.4 per share including Rs.2 premium)

	Equity Share First Call A/c	Dr.		4,00,000
	-------- To Equity Share Capital A/c				4,00,000
	(Being first call due on 2,00,000 shares at Rs.5 each)

	Equity Share Capital A/c	Dr.		9,000
	Securities Premium A/c	Dr.		2,000
	-------- To Share Forfeiture A/c (900 shares × Rs.5)				5,000
	-------- To Equity Share Allotment A/c (900 shares × Rs.4)				4,000
	-------- To Equity Share First Call A/c (900 shares × Rs.2)				2,000
	(Being 1,000 shares of category (i) Rs.10 each, on which Rs.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 Share Allotment A/c				2,100
	-------- To Equity Share First Call A/c				1,800
	(Being 900 shares of category (ii) forfeited for the nonpayment of amount due)

	Equity Share Final Call A/c	Dr.		1,98,100
	-------- To Equity Shares Capital A/c				1,98,100
	(Being final call due on 1,98,100 shares at Rs.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
	(Being 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
	(Being 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
	(Being 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
	(Being balance in share forfeiture account of 1,300 re-issued shares transferred to capital reserve)

Balance Sheet Super Star Ltd.
Particulars					Note No	Rs.
I. Equity and Liabilities
	1. Shareholder's Funds
			a. Share Capital		1	19,94,400
			b. Reserve and Surplus		2	4,00,600
Total						23,95,000

II. Assets
		1. Current Assets
				Cash and Cash Equivalents	3	23,95,000
Total						23,95,000

NOTES TO ACCOUNTS
Note No	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	Equity shares of Rs.10 each		-
	Issued Share Capital
	2,00,000 Equity Shares of Rs.10 each		20,00,000
	Subscribed Called-up and Paid up Share Capital
	1,98,200 Equity Shares of Rs.10 each	19,82,000
	Add: Shares Forfeited (600 shares × Rs.6.66)	4,000
	Add: Shares Forfeited (1,200 shares × Rs.7)	8,400	19,94,400

2.	Reserve and Surplus
	Securities Premium Reserve	3,96,200
	Capital Reserve	4,400	4,00,600

3.	Cash and Cash Equivalents
	Bank		23,95,000

Working Notes:

Money received on application (1,200 × Rs.5)	=	6,000
Less: Application money transferred to Share Capital (900 × Rs.5)	=	(4,500)
Excess money received from 1,200 shares on Application	=	Rs.1,500

Money due on Allotment (900 × Rs.4)	=	3,600
Less: Excess money on Application	=	(1,500)
Calls-in-Arrears on Allotment of category (ii)		Rs.2,100

2. Share Allotment
Money due on Allotment (2,00,000 × Rs.4)	=	8,00,000
Less: Excess money on Application	=	(2,00,00)
Less: Calls-in-Arrears 1,000 shares of category (i) (1,000 × Rs.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 × Rs.2	=	4,00,000
Less: Calls-in-Arrears on(1,000 + 900 + 1,200) 3,100 × Rs.2 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 - 1,900) × Rs.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

5. Capital Reserve
Calculation of Share Forfeiture of 1,000 shares of category (i)
Share Forfeiture Cr.	Rs.5,000
Less: Share Forfeiture Dr.	Rs.2,000
Capital Reserve of 1,000 shares Cr. (balance after re-issue)	Rs.3,000

Calculation of Share Forfeiture of 300 shares of category (ii)
Share Forfeiture Cr. =	=	Rs.6.67
Less: Share forfeiture Dr.	=	Rs.2
Capital Reserve of 1,000 shares (balance after re-issue)	=	Rs.4.67

Capital Reserve of 300 shares = Capital Reserve (per share) × Number of Shares re-issued

= Rs.4.67 × 300 = Rs.1,400

Capital Reserve of 1,000 shares of category (i)	3,000
Add: Capital Reserve of 300 shares of Category (ii)	1,400
Total Capital Reserve of 1,300 shares	Rs.4,400

Applied Shares 3,000

Allotment made as :
Applied	Allotted
2,400	2,000
600	NIL
3,000	2,000

Payable as :

Total called-up (10 + 4)

Rs.12

Cash Book
Dr.					Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.

	To Share Application A/c	18,000		By Share Application A/c	3,600
	To Share Allotment A/c	1,568		By Balance c/d	28,088
	To Share First Call A/c	5,700
	To Share Final Call A/c	5,700
	To Share Capital A/c	720

		31,688			31,688

Journal
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Share Application A/c	Dr.		14,400
	-------- To Share Capital A/c				10,000
	-------- To Securities Premium A/c				2,000
	-------- To Share Allotment A/c				2,400
	(Being share application money of 2,000 shares transferred to share capital and securities premium at Rs.5 and Rs.1 each respectively and 2,400 adjusted on allotment)

	Share Allotment A/c	Dr.		4,000
	-------- To Share Capital A/c				2,000
	-------- To Securities Premium A/c				2,000
	(Being allotment due on 2,000 shares at Rs.2 each including Rs.1 premium)

	Share First Call A/c	Dr.		6,000
	-------- To Share Capital A/c				4,000
	-------- To Securities Premium A/c				2,000
	(Being first call due on 2,000 shares at Rs.3 each including Rs.1 premium)

	Share Capital A/c (40 shares × Rs.8)	Dr.		320
	Securities Premium A/c	Dr.		72
	-------- To Share Forfeiture A/c				240
	-------- To Share Allotment A/c				32
	-------- To Share First Call A/c				120
	(Being 40 shares of Rs.10 each Rs.8 called with premium forfeited for non - payment of amount due)

	Share Final Call A/c	Dr.		5,880
	-------- To Shares Capital A/c				3,920
	-------- To Securities Premium A/c				1,960
	(Being final call due on 1,960 shares at Rs.3 each including Rs.1 premium)

	Share Capital A/c	Dr.		600
	Securities Premium A/c	Dr.		120
	-------- To Share forfeiture A/c				360
	-------- To Share First Call A/c				360
	(Being 60 shares forfeited for non-payment of amount due)

	Bank A/c	Dr.		720
	Share Forfeiture A/c	Dr.		80
	-------- To Shares Capital A/c				800
	(Being 80 shares of 10 each re-issued at Rs.9 per share fully paid-up)

	Share Forfeiture A/c	Dr.		400
	-------- To Capital Reserve A/c				400
	(Being balance of 80 re-issued shares in Share forfeiture account transferred to capital reserve)

Balance Sheet of XYZ Ltd
Particulars			Note No	Rs.
I. Equity and Liabilities
	1. Shareholder's Funds
		a. Share Capital	1	19,920
		b. Reserve and Surplus	2	8,168
Total				28,088

II. Assets
	1. Non - Current Assets
	2. Current Assets
		Cash and Cash Equivalents	3	28,088
Total				28,088

NOTES TO ACCOUNTS
Note No	Particulars		Rs.
1.	Share Capital
	Authorised Share Capital
	shares of Rs.10 each		-
	Issued Share Capital
	2,000 Equity Shares of Rs.10 each		20,000
	Subscribed Called-up and Paid up Share Capital
	1,980 Shares of 10 each	19,800
	Add : Shares Forfeited (20 × Rs.6)	120	19,920

2.	Reserve and Surplus
	Securities Premium	7,768
	Capital Reserve	400	8,168

3.	Cash and Cash Equivalents
	Bank		28,088

Working Notes:

Money received on application (48 shares × Rs.6)	=	288
Less: Money transferred to Shares Capital (40 shares × Rs.5)	=	(200)
		88
Less: Securities Premium (40 shares × Rs.1)	=	(40)
Excess money on application	=	Rs.48

Utilisation of excess application money received from X's Share
Share Capital due on Allotment (40 × Rs.1)	=	40
Less: Excess money on Application from X	=	(48)
Exess money after adjustment of Share Capital on Allotment	=	(Rs.8)

Securities Premium due on Allotment (40 × Rs.1)	=	40
Less: Excess money after adjustment of Share Capital on Allotment	=	(8)
Calls-in-Arrears of Securities Premium on Allotment	=	Rs.32

2. Share Allotment
Money due on allotment (2,000 shares × Rs.2)	=	4,000
Less: Excess money on Application	=	(2,400)
	=	(1,600)
Less: Calls-in-Arrears on X's Share (Securities Premium)	=	(32)
Money received on allotment	=	Rs.1,568

3.

Y's Share

4. Share First Call
Money due on Share First Call (2,000 × Rs.3)	=	6,000
Less: Calls-in-Arrears on X's Shares (40 × Rs.3)	=	(120)
		5,880
Less: Calls-in-Arrears on Y 's Shares (60 × Rs.3)	=	(180)
Money received on Share First Call	=	Rs.5,700

5. Share Final Call
Money due on share Final Call (1,960 × Rs.3)	=	5,880
Less: Calls-in-Arrears on Y's Shares (60 × Rs.3)	=	(180)
Money received on Share Final Call	=	5,700

Capital Reserve
X's Share
Money received from X for 40 shares	=	288
Less: Securities Premium adjusted on Application	=	(40)
		248
Less: Securities Premium adjusted on Allotment	=	(8)
Balance in the Share forfeiture before re-issue of shares Cr.		240

Share Forfeiture Cr.	6
Less: Share forfeiture Dr.	(1)
Balance in the Share forfeiture Cr. (Per Share)	Rs.5

Capital Reserve on re-issue of 20 shares = (Rs.5 × 20) = 100
Y's Shares
Share Forfeiture on 60 shares of Y
Share Forfeiture Cr.	6
Less: Share forfeiture Dr.	(1)
Balance in the Share forfeiture Cr. (Per Share)	5

Capital Reserve on re-issue of 60 shares of Y ( Rs.5 × 60)= Rs.300

Capital Reserve on re-issue of 20 shares of X	100
Add: Capital Reserve on reissue of 60 shares of Y	300
Total Capital Reserve on 80 shares	Rs.400

Cash Book

Particulars

Particulars

1,75,000