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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

Solution Ex. 1

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

 

 

 

 

 

Company Accounts - Accounting for Share Capital Exercise 8.114

Solution Ex. 2

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

 

 

 

 

 

Solution Ex. 3

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

 

 

 

 

 

Solution Ex. 4

 

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

 

 

 

 

 

Solution Ex. 5

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)

 

 

 

 

 

 

 

 

 

 

 

 

Solution Ex. 6

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)

 

 

 

 

 

 

 

 

 

 

 

Solution Ex. 7

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)

 

 

 

 

 

Solution Ex. 8

 

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

 

 

 

 

 

Solution Ex. 9

 

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

 

 

 

 

 

Company Accounts - Accounting for Share Capital Exercise 8.115

Solution Ex. 10

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)

 

 

 

 

 

 

 

 

 

 

 

Solution Ex. 11

 

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

 

Solution Ex. 12

 

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

 

Solution Ex. 13

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

 

Solution Ex. 14

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.

Solution Ex. 15

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)

 

 

 

 

 

Solution Ex. 16

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)

 

 

 

 

 

Solution Ex. 17

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

Applied = 30,000 shares

Over-subscribed = 10,000 shares

 

Total

Rs.8

 

Cash Book

Dr.

 

Cr.

Date 

Particulars 

Rs. 

Date 

Particulars 

Rs. 

 

 

 

 

 

 

 

1,75,000

 

 

1,75,000

 

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

 

 

 

 

Solution Ex. 18

 

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

 

 

Company Accounts - Accounting for Share Capital Exercise 8.116

Solution Ex. 19

 

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

 

Solution Ex. 20

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

 

Solution Ex. 21

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.

 

Solution Ex. 22

 

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

 

 

1st Feb

To Share Application A/c

40,000

30th June

By Balance c/d

3,98,100

28th Feb

To Share Allotment A/c

80,000

 

 

 

1st May

To Share First Call A/c

1,19,700

 

 

 

30th 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

 

 

 

 

 

1st 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)

 

 

 

 

 

 

 

 

 

 

1st 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)

 

 

 

 

 

 

 

 

 

 

1st 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)

 

 

 

 

 

 

 

 

 

 

30th 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)

 

 

 

 

 

 

 

 

 

 

1st 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)

 

 

 

 

 

 

 

 

 

 

30th 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

 

 

 

 

 

Company Accounts - Accounting for Share Capital Exercise 8.117

Solution Ex. 23

Books of Ghosh Ltd

Journal

Date

Particulars

 

L.F.

Debit

Rs.

Credit

Rs. 

2016

 

 

 

 

 

1st 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)

 

 

 

 

 

 

 

 

 

 

15th 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)

 

 

 

 

 

 

 

 

 

 

 

 

Solution Ex. 24

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

 

Solution Ex. 25

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

 

Solution Ex.26

Books of Bharat Ltd

Journal

Date

Particulars

 

L.F.

Debit

Rs. 

Credit

Rs. 

2006

 

 

 

 

 

1st 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)

 

 

 

 

 

 

 

 

 

 

1st 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Solution Ex.27

 

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)

 

 

 

 

 

Solution Ex.28

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)

 

 

 

 

 

Solution Ex.29

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)

 

 

 

 

 

Solution Ex.30

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)

 

 

 

 

 

Solution Ex.31

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)

 

 

 

 

 

Company Accounts - Accounting for Share Capital Exercise 8.118

Solution Ex.32

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:

Solution Ex.33

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:

Solution Ex.34

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)

 

 

 

 

 

Solution Ex.35

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.)

 

 

 

 

 

Solution Ex.36

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)

 

 

 

 

 

Solution Ex.37

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 

Solution Ex.38

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

 

Solution Ex.39

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

Company Accounts - Accounting for Share Capital Exercise 8.119

Solution Ex.40

 

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)

 

 

 

 

 

Solution Ex.41

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

Solution Ex.42

 

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

 

 

 

 

 

1st 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)

 

 

 

 

 

 

 

 

 

 

1st 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,)

 

 

 

 

 

 

 

 

 

 

1st 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)

 

 

 

 

 

 

 

 

 

 

1st 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)

 

 

 

 

 

 

 

 

 

 

1st 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)

 

 

 

 

 

 

 

 

 

 

1st 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)

 

 

 

 

 

Company Accounts - Accounting for Share Capital Exercise 8.120

Solution Ex.43

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)

 

 

 

 

 

Solution Ex.44

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

Solution Ex.45

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

 

 

Solution Ex.46

 

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

Solution Ex.47

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

 

Solution Ex.48

 

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

 

 

Solution Ex.49

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

 

Solution Ex.50

 

Journal

Date

Particulars

 

L.F.

Debit

Rs. 

Credit

Rs. 

2014

 

 

 

 

 

1st 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)

 

 

 

 

 

 

 

 

 

 

11st 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

 

 

 

 

 

 

 

 

 

 

11st 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

 

Company Accounts - Accounting for Share Capital Exercise 8.121

Solution Ex.51

 

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

Solution Ex.52

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

 

Solution Ex.53

In the books of Devendra Ltd.

Journal

Date

Particulars

 

L.F.

Debit

Rs. 

Credit

Rs. 

2010

 

 

 

 

 

1st Jan

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)

 

 

 

 

 

 

 

 

 

 

1st Feb

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)

 

 

 

 

 

 

 

 

 

 

1st Feb

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

Solution Ex.54

 

(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 

 

Solution Ex.55

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

 

Solution Ex.56

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

  

Solution Ex.57

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

 

Solution Ex.58

 

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

 

Company Accounts - Accounting for Share Capital Exercise 8.122

Solution Ex.59

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

Solution Ex.60

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

 

Solution Ex.61

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)

 

 

 

 

 

Solution Ex.62

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

Solution Ex.63

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 

 

Solution Ex.64

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

Company Accounts - Accounting for Share Capital Exercise 8.123

Solution Ex.65

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

Solution Ex.66

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)

 

 

 

 

 

Solution Ex.67

 

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) 

 

 

Solution Ex.68

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

Solution Ex.69

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 

 

Solution Ex.70

 

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

 

Solution Ex.71

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

Company Accounts - Accounting for Share Capital Exercise 8.124

Solution Ex.72

 

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

 

Solution Ex.73

 

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)

 

 

 

 

 

 

 

 

 

 

Solution Ex.74

 

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)

 

 

 

 

 

 

 

 

 

 

Company Accounts - Accounting for Share Capital Exercise 8.125

Solution Ex.75

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 (96,0008)

Dr.

 

7,68,000

 

 

--------To Equity Share Capital A/c (96,0003)

 

 

 

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 

Solution Ex.76

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)

Solution Ex.77

 

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

 

Solution Ex. 78

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

 

Company Accounts - Accounting for Share Capital Exercise 8.126

Solution Ex.79

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

 

 

 

 

 

 

 

Solution Ex.80

 

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  

 

Solution Ex.81

 

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 

  

 

Company Accounts - Accounting for Share Capital Exercise 8.127

Solution Ex.82

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

 

Solution Ex. 83

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

 

 

 

 

Solution Ex. 84

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

 

Company Accounts - Accounting for Share Capital Exercise 8.128

Solution Ex. 85

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

 

Solution Ex.86

 

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 

 

 

Solution Ex. 87

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

 

Solution Ex. 88

 

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

 

Company Accounts - Accounting for Share Capital Exercise 8.129

Solution Ex. 89

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

 

Solution Ex. 90

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

Solution Ex. 91

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

Company Accounts - Accounting for Share Capital Exercise 8.130

Solution Ex. 92

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

 

Solution Ex. 93

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

 

 

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