Accounting For Share Capital
TS Grewal Solutions
Table Of Content
Disclosure of Share Capital In Company’s Balance Sheet .
Question 1: Gopal Ltd. was registered with an authorised capital of ₹ 50,00,000 divided into Equity Shares of ₹ 100 each . The company offered for public subscription all the shares . Public applied for 45,000 shares and allotment was made to all the applicants. All the calls were made and were duly received except the final call of ₹ 20 per share on 500 shares.
Prepare the Balance Sheet of the company showing the different types of share capital.
Solution-:
| Gopal Ltd.
BALANCE SHEET as on 31st March 2015 |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
2. Non-Current Liabilities
3. Current Liabilities |
1 |
44,99,000 |
| Total |
|
44,99,000 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
2 |
44,99,000 |
| Total |
|
44,99,000 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
5,00,000 equity shares of Rs 10 each
Issued Share Capital
5,00,000 equity shares of Rs 10 each
Subscribed, Called-up and Paid-up Share Capital
4,50,000 equity shares of Rs 10 each 45,00,000
Less: Calls in Arrears (500 shares × Rs 2) (1,000) |
50,00,000
50,00,000
44,99,000 |
| 2. |
Cash and Cash Equivalents
Cash at Bank |
44,99,000 |
Question 2: Himmat Ltd has authorised share capital of ₹ 50,00,000 divided into 5,00,000 Equity Shares of ₹ 10 each . It has existing issued and paid up capital of ₹ 5,00,000. It further issued to public 1,50,000 Equity Shares at par for subscription payable as under:
| On Application: |
₹ 3 |
| On Allotment: |
₹ 4 and |
| On Call: |
Balance Amount. |
The issue was fully subscribed and allotment was made to all the applicants . Call was made during the year and was duly received.
Show share capital of the company in the Balance Sheet of the Company.
Solution-:
| Himmat Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
2. Non-Current Liabilities
3. Current Liabilities |
1 |
20,00,000 |
| Total |
|
20,00,000 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
2 |
20,00,000 |
| Total |
|
20,00,000 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
5,00,000 Equity Shares of Rs 10 each
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
Subscribed and Paid-up 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 |
50,00,000
20,00,000
20,00,000 |
| 2. |
Cash and Cash Equivalents
Cash at Bank |
20,00,000 |
Question 3: Lennova Ltd. has authorised share capital of ₹ 1,00,00,000 divided into 1,00,000 Equity Shares of ₹ 100 each . It has existing issued and paid up capital of ₹ 25,00,000. It further issued to public 25,000 Equity Shares at a premium of 20% for subscription payable as under:
| On Application: |
₹ 30 |
| On Allotment: |
₹ 60 and |
| On Call: |
Balance Amount. |
The issue was fully subscribed and allotment was made to all the applicants . The company did not make the call during the year.
Show share capital of the company in the Balance Sheet of the Company.
Solution-:
| Lennova Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
(b) Reserve & Surplus
2. Non-Current Liabilities
3. Current Liabilities |
1
2 |
42,50,000
5,00,000 |
| Total |
|
47,50,000 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
3 |
47,50,000 |
| Total |
|
47,50,000 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
1,00,000 Equity Shares of Rs 100 each
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
Subscribed Share Capital
Subscribed and Fully paid-up
25,000 Equity Shares of Rs 100 each
Subscribed but not fully paid-up
25,000 Equity Shares of Rs 100 each, 70 called-up |
1,00,00,000
50,00,000
25,00,000
17,50,000 |
|
2. Reserves and Surplus
Securities Premium Reserve
(25,000 shares @ Rs 20 per share) |
5,00,000 |
| 3. |
Cash and Cash Equivalents
Cash at Bank |
47,50,000 |
Question 4: Star Ltd. is registered with capital of ₹ 50,00,000 divided into 50,000 equity shares of ₹ 100 each, The Company issued 25,000 equity shares for subscription. Subscription was received for 23,750 shares and all the due amount was duly received, except the first and final call of ₹ 20 per share on 600 shares. Show the ‘Share Capital’ in the Balance Sheet of the company.
Solution-:
| Star Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
2. Non-Current Liabilities
3. Current Liabilities |
1 |
23,63,000 |
| Total |
|
23,63,000 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
3 |
23,63,000 |
| Total |
|
23,63,000 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Capital
50,000 equity shares of ₹ 100 each
Issued Capital
25,000 shares of ₹ 100 each
Subscribed Capital
23,750 shares of ₹ 100 each 23,75,000
Less: Calls-in-Arrears (600 × 20) 12,000 |
50,00,000
25,00,000
23,63,000 |
| 2. |
Cash and Cash Equivalents
Cash at Bank |
23,63,000 |
Issue of Shares for Cash at Pa
Question 5: Money plus company issued 2,50,000 Equity Shares of ₹ 10 each to public. All amounts have been received in lump sum. Pass necessary Journal entries in the books of the company.
Solution-:
| In the Books of Money plus Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Equity Share Application A/c
(Share application money received for 2,50,000 equity shares of Rs 10 each) |
|
25,00,000 |
25,00,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c
(Share application of 2,50,000 equity shares of Rs 10 each transferred to Equity Share Capital Account ) |
|
25,00,000 |
25,00,000 |
Question 6: The authorised capital of ₹ 16,00,000 of Bharat Ltd. is divide into 1,60,000 Equity Shares of ₹ 10 each. Out of these shares, 80,000 Equity Shares were issued at par to public for subscription. The full nominal value is payable on application. All the shares were subscribed by the public and total amount was paid for. Pass necessary journal entries in the books of the company:
Solution-:
| In the Books of Bharat Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Equity Share Application A/c
(Share application money received for 80,000 Equity Shares of ₹ 10 each) |
|
8,00,000 |
8,00,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c
(Share application of 80,000 shares of ₹ 10 each transferred to Equity Share Capital Accounts) |
|
8,00,000 |
8,00,000 |
Question 7:
Hema Ltd. invited applications for 10,000 shares of ₹ 100 each payable as follows:
₹ 20 on application, ₹ 30 on allotment, ₹ 20 on first call and the balance on final call.
All the shares were applied and allotted. All the money was duly received.
You are required to Journalise these transactions.
Solution-:
| In the Books of Hema Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Share Application A/c
(Share application money received for 10,000 shares at ₹ 20 per share) |
|
2,00,000 |
2,00,000 |
|
Share Application A/c Dr.
To Share Capital A/c
(Share application of 10,000 shares of ₹ 20 each transferred to Share Capital) |
|
2,00,000 |
2,00,000 |
|
Share Allotment A/c Dr.
To Share Capital A/c
(Share allotment due on 10,000 shares at ₹ 30 per share) |
|
3,00,000 |
3,00,000 |
|
Bank A/c Dr.
To Share Allotment A/c
(Share allotment money received for 10,000 Shares at ₹ 30 per share) |
|
3,00,000 |
3,00000 |
|
Share First Call A/c Dr.
To Share Capital A/c
(Share first call due on 10,000 shares at ₹ 20 per share) |
|
2,00,000 |
2,00,000 |
|
Bank A/c Dr.
To Share First call A/c
(Share first call received on 10,000 shares at ₹ 20 per share) |
|
2,00,000 |
2,00,000 |
|
Share Final Call A/c Dr.
To Share Capital A/c
(Share Final call due on 10,000 shares at ₹ 30 per shares) |
|
3,00,000 |
3,00,000 |
|
Bank A/c Dr.
To Share Final Call A/c
(Share final call received on 10,000 shares at ₹ 30 per share) |
|
3,00,000 |
3,00,000 |
Question 8: Marigold Ltd . was registered with the authorized capital of ₹ 3,00,000 divided into 3,000 shares of ₹ 100 each, which were offered to the public . Amount payable as ₹ 30 per share on application , ₹ 40 per share on allotment and ₹ 30 per share on first and final call . These shares were fully subscribed and all money was dully received . Prepare journal and Cash Book.
Solution-:
| In the Books of Marigold Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Application A/c Dr.
To Share Capital
(Share application money transferred) |
|
90,000 |
90,000 |
|
Share Allotment A/c Dr.
To Share Capital A/c
(Share allotment money transferred) |
|
1,20,000 |
1,20,000 |
|
Share First and Final Call A/c Dr.
To Share Capital A/c
(Share first and final call money transferred) |
|
90,000 |
90,000 |
| Cash Book
Dr. Cr. |
| Particulars |
Amt. (₹) |
Particulars |
Amt. (₹) |
| Share Application A/c
Share Allotment A/c
Share First and Final Call A/c |
90,000
1,20,000
90,000 |
Balance c/d |
3,00,000 |
|
3,00,000 |
|
3,00,000 |
Question 9: Modern Marbles Ltd. was registered with an authorised capital of ₹10,00,000 divided into 7,500 Equity Shares of ₹ 100 each and, 2,500 Preference Shares of ₹100 each. 1,000 Equity Shares and 500; 9% Preference Shares were offered to public on the following terms – Equity Shares payable ₹10 on application, ₹40 on allotment and the balance in two calls of ₹ 25 each. Preference Shares are payable ₹ 25 on application, ₹ 25 on allotment and ₹50 on first and final call. All the shares were applied for and allotted . Amount due was duly received. Prepare Cash Book and pass necessary Journal entries to record the above issue of shares and show how the Share Capital will appear in the Balance Sheet.
Solution-:
| In the Books of Modern Marbles Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c
(Equity share application of 1,000 shares of ₹ 10 each transferred to Equity Share Capital Account) |
|
10,000 |
10,000 |
|
Preference Share Application A/c Dr.
To 9% Preference Share Capital A/c
(Preference share applications of 500 shares ₹ 25 each transferred to 9% Preference Share Capital Account) |
|
12,500 |
12,500 |
|
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
(Equity share allotment due on 1,000 shares at ₹ 40 each) |
|
40,000 |
40,000 |
|
Preference Share Allotment A/c Dr.
To 9% Preference Share Capital A/c
(Preference share allotment due on 500 shares at ₹ 25 each) |
|
12,500 |
12,500 |
|
Equity Share First Call A/c Dr.
To Equity Share Capital A/c
(Equity share first call due on 1,000 shares at ₹ 25 each) |
|
25,000 |
25,000 |
|
Preference Share First and Final Call A/c Dr.
To 9% Preference Share Capital A/c
(Preference share first and final call due on 500 shares at ₹ 50 each) |
|
25,000 |
25,000 |
|
Equity Share Final Call A/c Dr.
To Equity Share Capital A/c
(Equity share final call due on 1,000 shares at ₹ 25 each) |
|
25,000 |
25,000 |
| Cash Book
Dr. Cr. |
| Particulars |
Amt. (₹) |
Particulars |
Amt. (₹) |
| Equity Share Application
Preference Share Application
Equity Share Allotment
Preference Share Allotment
Equity Share First Call
Preference Share First and Final Call
Equity Share Final Call |
10,000
12,500
40,000
12,500
25,000
25,000
25,000 |
Balance c/d |
1,50,000 |
|
1,50,000 |
|
1,50,000 |
| Modern Marbles Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
2. Non-Current Liabilities
3. Current Liabilities |
1 |
1,50,000 |
| 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 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
75,000 Equity Shares of ₹ 100 each 7,50,000
25,000 9% Preference Shares of ₹ 100 each 2,50,000
Issued Share Capital
1,000 Equity Shares of ₹ 100 each 1,00,000
500 9% Preference Shares of ₹ 100 each 50,000
Subscribed, Called-up and Paid-up Share Capital
1,000 Equity Shares of ₹ 100 each 1,00,000
500 9% Preference Shares of ₹ 100 each 50,000 |
10,00,000
1,50,000
1,50,000 |
| 3. |
Cash and Cash Equivalents
Cash at Bank |
1,50,000 |
|
Question 10: Shiva Ltd . issued 1,00,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share . The whole amount was payable on application. The issue was fully subscribed . Pass necessary Journal entries:
Solution-: |
| In the Books of Shiva Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Equity Share Application and
Allotment A/c
(Share application and allotment money received for 1,00,000 Shares at Rs 15 each including Rs 5 premium) |
|
15,00,000 |
15,00,000 |
|
Equity Share Application and Allotment A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(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) |
|
15,00,000 |
10,00,000
5,00,000 |
issue of Shares for Cash at Premium
Question 11: Seema Ltd. offered for subscription 10,000 shares of ₹ 25 each, payable ₹ 5 per share on application, ₹ 10 per share on allotment (including ₹ 5 per share as premium), ₹ 5 per share as first call on the shares and the balance in two equal amounts at intervals of three months. All the shares were applied for and allotted. All the money was received except the second call and final call on 200 and 400 shares respectively. Pass the entries in the company’s Journal, Cash Book and the ledger. Also show the company’s Balance Sheet on completion of the above transactions.
Solution-:
| Cash Book
Dr. Cr. |
| Particulars |
Amt. (₹) |
Particulars |
Amt. (₹) |
| Share Application
Share Allotment
Share First Call
Share Second Call
Share Final Call |
50,000
1,00,000
50,000
49,000
48,000 |
Balance c/d |
2,97,000 |
|
2,97,000 |
|
2,97,000 |
| In the Books of Seema Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Application A/c Dr.
To Share Capital A/c
(Application money of 10,000 shares of ₹ 5 each transferred to Share Capital) |
|
50,000 |
50,000 |
|
Share Allotment A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Share allotment of 10,000 shares transferred to Share Capital at ₹ 5 each
and Securities Premium at ₹ 5 each) |
|
1,00,000 |
50,000
50,000 |
|
Share First Call A/c Dr.
To Share Capital A/c
(First call due on 10,000 shares at ₹ 5 each) |
|
50,000 |
50,000 |
|
Share Second Call A/c Dr.
To Share Capital A/c
(Second call due on 10,000 shares at 5 each) |
|
50,000 |
50,000 |
|
Call-in-Arrears A/c Dr.
To Share Second Call A/c
(Second call outstanding on 200 shares at ₹ 5 each) |
|
1,000 |
1,000 |
|
Share Final Call A/c Dr.
To Shares Capital A/c
(Final call due on 50,000 shares of ₹ to 5 per shares) |
|
50,000 |
50,000 |
|
Calls-in-Arrears A/c Dr.
To Shares Final Call A/c
(Final call outstanding on 400 shares at ₹ 5 each) |
|
2,000 |
2,000 |
| Share Application A/c
Dr. Cr. |
| Date |
Particulars |
Amt. (₹) |
Date |
Particulars |
Amt. (₹) |
|
To Share Capital |
50,000 |
|
By Bank |
50,000 |
|
|
50,000 |
|
|
50,000 |
| Share Allotment A/c
Dr. Cr. |
| Date |
Particulars |
Amt. (₹) |
Date |
Particulars |
Amt. (₹) |
|
To Share Capital
to Securities Premium |
50,000
50,000 |
|
By Bank |
1,00,000 |
|
|
1,00,000 |
|
|
1,00,000 |
| Share First Call A/c
Dr. Cr. |
| Date |
Particulars |
Amt. (₹) |
Date |
Particulars |
Amt. (₹) |
|
To Share Capital |
50,000 |
|
By Bank |
50,000 |
|
|
50,000 |
|
|
50,000 |
| Share Second Call A/c
Dr. Cr. |
| Date |
Particulars |
Amt. (₹) |
Date |
Particulars |
Amt. (₹) |
|
To Share Capital |
50,000 |
|
By Bank
Call in Arrear |
49,000
1,000 |
|
|
50,000 |
|
|
50,000 |
| Share Final Call A/c
Dr. Cr. |
| Date |
Particulars |
Amt. (₹) |
Date |
Particulars |
Amt. (₹) |
|
To Share Capital |
50,000 |
|
By Bank
Call in Arrear |
48,000
2,000 |
|
|
50,000 |
|
|
50,000 |
| Call in Arrear A/c
Dr. Cr. |
| Date |
Particulars |
Amt. (₹) |
Date |
Particulars |
Amt. (₹) |
|
To Share Second Call
To Share Final Call |
1,000
2,000 |
|
By Balance c/d |
3,000 |
|
|
3,000 |
|
|
3,000 |
| Share Capital A/c
Dr. Cr. |
| Date |
Particulars |
Amt. (₹) |
Date |
Particulars |
Amt. (₹) |
|
To Balance c/d |
2,50,000 |
|
By Share Application
By Share Allotment
By Share First Call
By Share Second
By Share Final Call |
50,000
50,000
50,000
50,000
50,000 |
|
|
2,50,000 |
|
|
2,50,000 |
| Securities Premium A/c
Dr. Cr. |
| Date |
Particulars |
Amt. (₹) |
Date |
Particulars |
Amt. (₹) |
|
To Balance c/d |
50,000 |
|
By Share Allotment |
50,000 |
|
|
50,000 |
|
|
50,000 |
| Seema Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
(b) Reserve & Surplus
2. Non-Current Liabilities
3. Current Liabilities |
1 |
2,47,000
50,000 |
| Total |
|
2,97,000 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
2 |
2,97,000 |
| Total |
|
1,50,000 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
……. shares of ₹ 25 each
Issued Share Capital
10,000 shares of ₹ 25 each
Subscribed, Called-up and Paid-up Share Capital
10,000 shares of ₹ 25 each 2,50,000
Less: Calls-in-Arrears (3,000) |
2,50,000
2,47,000 |
| 2. |
Reserves and Surplus
Securities Premium |
50,000 |
| 3. |
Cash and Cash Equivalents
Cash at Bank |
2,97,000 |
Question 12: Bharat Ltd. was incorporated with a capital of ₹ 2,00,000 divided into shares of ₹ 10 each. 2,000 shares were offered for subscription and out of these, 1,800 shares were applied for and allotted. ₹ 3 per share (including ₹ 1 premium) was payable on application, ₹ 4 per share (including ₹ 1 premium) on allotment, ₹ 2 per share on first call and ₹ 3 per share on final call. All the money was received. Give necessary Journal entries and show share capital in the Balance Sheet.
Solution-:
| In the Books of Bharat Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Share Application A/c
(Application money received for 1,800 shares at Rs 3 per shares) |
|
5,400 |
5,400 |
|
Share Application A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Application money of 1,800 share transferred to Share Capital at Rs 2 per share and Securities Premium Re 1 per share) |
|
5,400 |
3,600
1,800 |
|
Share Allotment A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Share allotment due on 1,800 shares at Rs 4 per share including Re 1 securities premium) |
|
7,200 |
5,400
1,800 |
|
Bank A/c Dr.
To Share Allotment A/c
(Share Allotment money received) |
|
7,200 |
7,200 |
|
Share First Call A/c Dr.
To Share Capital A/c
(Share first call due on 1,800 shares at Rs 2 per shares) |
|
3,600 |
3,600 |
|
Bank A/c Dr.
To Share First Call A/c
(Share first call money received) |
|
3,600 |
3,600 |
|
Share Final Call A/c Dr.
To Share Capital A/c
(Share final call due on 1,800 shares at Rs 3 per share) |
|
5,400 |
5,400 |
|
Bank A/c Dr.
To Share Final Call A/c
(Share final call money received) |
|
5,400 |
5,400 |
| Bharat Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
2. Non-Current Liabilities
3. Current Liabilities |
1 |
18,000 |
| Total |
|
18,000 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
2 |
18,000 |
| Total |
|
18,000 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
20,000 shares of Rs 10 each
Issued Share Capital
2,000 shares of Rs 10 each
Subscribed, Called-up and Paid-up Share Capital
1,800 shares of Rs 10 each |
2,00,000
20,000
18,000 |
| 2. |
Cash and Cash Equivalents
Cash at Bank |
18,000 |
Question 13: Authorized capital of Suhani Ltd. is ₹ 45,00,000 divided into 30,000 shares of ₹ 150 each. Out of these company issued 15,000 shares of ₹ 150 each at a premium of ₹ 10 per share. the amount was payable as follows:
₹ 50 per share on application, ₹ 40 per share on allotment (including premium), ₹ 30 per share on first call and balance on final call. Public applied for 14,000 shares. All the money was duly received.
Prepare an extract of Balance Sheet of Suhani Ltd. as per Schedule III, Part I of the companies Act, 2013 disclosing the above information. Also prepare ‘Notes to Accounts ‘ for the same.
Solution-:
| Suhani Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
(b) Reserve & Surplus
2. Non-Current Liabilities
3. Current Liabilities |
1
2 |
21,00,000
1,40,000 |
| 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 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
30,000 shares of Rs 150 each
Issued Share Capital
15,000 shares of Rs 150 each
Subscribed, Called-up and Paid-up Share Capital
14,000 shares of Rs 150 each |
45,00,000
22,50,000
21,00,000 |
| 2. |
Reserves and Surplus
Securities Premium |
1,40,000 |
| 3. |
Cash and Cash Equivalents
Cash at Bank |
18,000 |
Oversubscription
Question 14: Super star company invited applications for 75,000 equity shares of ₹ 100 each. The application money received @ ₹ 30 per share was ₹ 27,00,000. Name the kind of subscription.
List the three alternatives for allotting these shares.
Solution-:
Total Money Received on Application = ₹ 27,00,000
Application money per share = ₹ 30
Number of shares applied by the public=Total Appliaction money ReceivedApplication money per share=27,00,00030=90,000 shares
Share Applications invited by the company = 75,000
Since, Number of Shares applied for by the company exceeds the number of shares offered by the company by 15,000 shares (i.e. 90,000 – 75,000). Therefore, it is a case of oversubscription of shares.
The alternatives available with the company are as follows:
1. By rejecting the excess applications and allotting only 75,000 shares.
2. By making allotment to the 90,000 shares applicants on a proportionate or pro-rata basis.
3. By making allotment to some on pro-rata basis and rejecting some applicants. For e.g.: 85,000 share applicants are given 75,000 shares on pro-rata basis and the remaining 5,000 shares have been rejected.
Question 15: Sangam Ltd. invited applications for 10,000 Equity Shares of ₹ 100 each issued at par. The amount was payable on application. The issue was oversubscribed by 2,000 shares and allotment was made on pro rata basis. Pass necessary Journal entries.
Solution-:
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c (12,000 × 100) Dr.
To Share Application and Allotment A/c (12,000 × 100)
(Being application money received on 12,000 equity shares) |
|
12,00,000 |
12,00,000 |
|
Share Application and Allotment A/c Dr.
To Share Capital A/c (10,000 × 100)
To Bank A/c (2,000 × 100)
(Being share application and allotment money adjusted for 10,000 shares and balance money refunded) |
|
12,00,000 |
10,00,000
2,00,000 |
Note: Since the entire amount is receivable on application so the excess money on 2,000 shares has been refunded and allotment is made on a pro-rata basis to 12,000 shareholders.
Question 16: Citizen Watches Ltd. invited applications for 50,000 shares of ₹ 10 each payable
₹ 3 on application ,
₹ 4 on allotment and
balance on first and final call .
Applications were received for 60,000 shares . Applications were accepted for 50,000 shares and remaining applications were rejected . All calls were made and received except First and Final call on 500 shares .
Pass the journal entries in the books of Citizen Watches Ltd .
Solution-:
| In the Books of Citizen Watches Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c (60,000×3) Dr.
To Share Application A/c
(Received application money on 60,000 shares) |
|
1,80,000 |
1,80,000 |
|
Share Application A/c Dr.
To Share Capital A/c (50,000×3)
To Bank A/c (10,000×3)
(Transfer of application money to Share Capital) |
|
1,80,000 |
1,50,000
30,000 |
|
Share Allotment A/c (50,000×4) Dr.
To Share Capital A/c
(Allotment due on 50,000 shares ) |
|
2,00,000 |
2,00,000 |
|
Bank A/c Dr.
To Share Allotment A/c
(Allotment received) |
|
2,00,000 |
2,00,000 |
|
Share First and Final Call A/c (50,000×3) Dr.
To Share Capital A/c
(Call money due on 50,000 shares) |
|
1,50,000 |
1,50,000 |
|
Bank A/c (49,500×3) Dr.
To Share First and Final Call A/c
(Received call money on 49,500 shares) |
|
1,48,500 |
1,48,500 |
Question 18: Eastern Company Limited , having an authorised capital of ₹ 10,00,000 divided into shares of ₹ 10 each , issued 50,000 shares at a premium of ₹ 3 per share payable as follows:
On Application
|
₹ 3 per share
|
On Allotment (including premium)
|
₹ 5 per share
|
On first call (due three months after allotment )
|
₹ 3 per share
|
and the balance as when required
|
|
Applications were received for 60,000 shares and the directors allotted the shares as follows:
(i) Applicants for 40,000 shares received in full.
(ii) Applicants for 15,000 shares received an allotment of 8,000 shares.
(iii) Applicants for 5,000 shares received 2,000 shares on allotment , excess money being returned.
All amounts due on allotment were received.
The first call was made and the money was received except on 100 shares.
Give journal and cash book entries to record these transactions of the company . Also prepare the Balance Sheet of the company.
Solution-:
| In the Books of Eastern Company Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Application A/c Dr.
To Share Capital A/c
To Share Allotment A/c
(Share Application money for 50,000 shares transferred To Share Capital Account and the excess money transferred To Share Allotment Account) |
|
1,80,000 |
1,50,000
30,000 |
|
Share Allotment A/c Dr.
To Share Capital A/c
To Share Premium A/c
(Allotment money due on 50,000 shares @ Rs 5 per share including Rs 3 security premium) |
|
2,50,000 |
1,00,000
1,50,000 |
|
Share First Call A/c Dr.
To Share Capital A/c
(First call due on 50,000 shares @ Rs 3 per share) |
|
1,50,000 |
1,50,000 |
| Cash Book
Dr. Cr. |
| Particulars |
Amt. (₹) |
Particulars |
Amt. (₹) |
| Share Application
Share Allotment
Share First Call |
1,80,000
2,20,000
1,49,700 |
Balance C/d |
5,49,700 |
|
5,49,700 |
|
5,49,700 |
| Eastern Company Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
(b) Reserve & Surplus
2. Non-Current Liabilities
3. Current Liabilities |
1
2 |
3,99,700
1,50,000 |
| 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 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
1,00,000 shares of Rs 10 each
Issued Share Capital
50,000 shares of Rs 10 each
Subscribed, Called up and Paid up Share Capital
50,000 shares of Rs 10 each, Rs 8 called–up 4,00,000
Less: Calls–in–Arrears (300) |
10,00,000
5,00,000
3,99,700 |
| 2. |
Reserves and Surplus
Securities Premium |
1,50,000 |
| 3. |
Cash and Cash Equivalents
Cash at Bank |
5,49,700 |
|
Question 19: Varun Ltd. issued ₹ 10,00,000 shares of ₹ 100 each at a premium of ₹ 20 for subscription payable as:
₹ 10 per share on application,
₹ 40 per share and ₹ 10 premium on allotment, and
₹ 50 per share and ₹ 10 premium on final payment.
Over-payments on application were to be applied towards amount due on allotment and over-payments on application exceeding amount due on allotment was to be returned. Issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and applicants for 2,000 shares were sent letters of regret. All the money due on allotment and final call was duly received.
Pass necessary entries in the company’s books to record the above transactions. Also, prepare company’s Balance Sheet on completion of the above transactions.
Solution-:
| In the Books of Varun Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Share Application A/c
(Share application money received for 23,000 shares at Rs 10 each) |
|
2,30,000 |
2,30,000 |
|
Share Application A/c Dr.
To Share Capital A/c
To Share Allotment A/c
To Bank A/c
(Share application of 10,000 shares transferred to Share Capital, Rs 50,000 adjusted on allotment and remaining amount returned) |
|
2,30,000 |
1,00,000
50,000
80,000 |
|
Share Allotment A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Share allotment due on 10,000 shares at Rs 50 each including Rs 10 premium) |
|
5,00,000 |
4,00,000
1,00,000 |
|
Bank A/c Dr.
To Share Allotment A/c
(Share allotment money received) |
|
4,50,000 |
4,50,000 |
|
Share First and Final Call A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(First and final call due on 10,000 shares at Rs 60 each including Rs 10 premium) |
|
6,00,000 |
5,00,000
1,00,000 |
|
Bank A/c Dr.
To Share First and Final Call A/c
(Share first and final call money received) |
|
6,00,000 |
6,00,000 |
| Varun Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
(b) Reserve & Surplus
2. Non-Current Liabilities
3. Current Liabilities |
1
2 |
10,00,000
2,00,000 |
| 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 to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
…… shares of Rs 100 each
Issued Share Capital
10,000 shares of Rs 100 each
Subscribed, Called up and Paid up Share Capital
10,000 shares of Rs 100 each |
10,00,000
10,00,000 |
| 2. |
Reserves 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
@ ₹ 10 each |
Money transferred to Share Capital
@ ₹ 10 each |
Excess |
Allotment due
@ ₹ 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 |
NIL |
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 |
| Share Allotment due (10,000 share × ₹ 50) |
5,00,000 |
| Less: Excess application money adjusted on allotment |
50,000 |
| Money received on Allotment |
4,50,000 |
Question 20: Sugandh Ltd. issued 60,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as ₹ 3 on application, ₹ 5(including premium) on allotment and the balance on first and final call. Applications were received for 92,000 shares. The Directors resolved to allot as:
| (i) Applicants of 40,000 shares |
30,000 shares |
| (ii) Applicants of 50,000 shares |
30,000 shares |
| (iii) Applicants of 2,000 shares |
Nil |
Mohan, who had applied for 800 shares in Category
(i) and Sohan, who was allotted 600 shares in Category
(ii) failed to pay the allotment money. Calculate amount received on allotment.
Solution-:
|
|
|
|
|
|
|
| Applied |
Allotted |
Money Received on Application
@ 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 |
NIL |
6,000 |
– |
6,000 |
|
|
|
|
|
|
(Bank) |
|
|
| 92,000 |
60,000 |
2,76,000 |
1,80,000 |
|
3,00,000 |
90,000 |
| Mohan |
| Money Received on Application (800×3) |
2,400 |
| Application money adjusted to Share |
1,800 |
| Capital (600×3) |
600 |
| Execs Money on Application |
3,000 |
| Allotment due on 600 shares × Rs 5 |
600 |
| Less: Adjustment of excess money on application |
2,400 |
| Calls-in-Arrears by Mohan |
|
| Sohan |
| Money received on Application 1,000×3 |
3,000 |
| Application money adjusted to Share Capital 600×3 |
1,800 |
| Excess money on application |
1,200 |
|
| Allotment due on 600 Shares × Rs 5 |
3,000 |
| Less: Adjustment of excess money on application |
1,200 |
| Calls-in-Arrears by Sohan |
1,800 |
|
| Allotment due on 60,000 shares × 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 |
Question 21: Sony Media Ltd. issued 50,000 shares of ₹ 10 each payable ₹ 3 on application , ₹ 4 on allotment and balance on first and final call . Applications were received for 1,00,000 shares and allotment was made as follows :
(i) Applicants for 60,000 shares were allotted 30,000 shares,
(ii) Applicants for 40,000 shares were allotted 20,000 shares,
Anupam to whom 1,000 shares were allotted from category
(i) failed to pay the allotment money.
Pass journal entries up to allotment .
Solution-:
| In the Books of Sony Media Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c (1,00,000 × 3)
To Share Application A/c
(Received application money on 1,00,000 shares) |
|
3,00,000 |
3,00,000 |
|
Share Application A/c Dr.
To Share Capital A/c (50,000 × 3)
To Share Allotment A/c
(Transfer of application money to Share Capital) |
|
3,00,000 |
1,50,000
1,50,000 |
|
Share Allotment A/c (50,000 × 4) Dr.
To Share Capital A/c
Allotment due on 50,000 shares) |
|
2,00,000 |
2,00,000 |
|
Bank A/c (W.N. 1) Dr.
To Share Allotment A/c
(Allotment money received after adjustment of excess on application and arrears) |
|
49,000 |
49,000 |
Working Notes:
| (1) Computation of amount received on allotment: |
| Allotment due (50,000 × 4) |
Rs. 2,00,000 |
| Less: Amount received on application in excess (on 50,000 shares @ Rs . 3 each) |
Rs. 1,50,000 |
|
Rs. 50,000 |
| Less: Amount due but not received on shares of Anupam |
1,000 |
|
Rs. 49,000 |
| (2) Calculation of Amount not Received on the shares of Anupam |
| Shares allotted to Anupam |
1,000 |
| Shares applied by Anupam 1,000/30,000 × 60,000 |
2,000 |
| Amount due on allotment of Anupam’s Share (4 × 1,000) |
4,000 |
| Less: Excess received on application (3 × 2,000 – 3 × 1,000) |
3,000 |
|
1,000 |
Undersubscription
Question 22: Blue Chip Ltd. was registered on 1st January,2011 with a capital of ₹10,00,000 divided into 1,00,000 shares of ₹ 10 each . The company issued 42,000 shares of which 40,000 shares were taken up by the public and ₹ 1 per share was received with application. On 1st February , these shares were allotted and ₹ 2 per share was duly received on 28th February as allotment money. A first call of ₹ 3 per share was made on 1st March and the call money on all shares with the exception of 100 shares was received . The final call of ₹ 4 per share was made on 1st June and the amount due, with the exception of 400 shares , was received by 30th June. Pass necessary journal ands Cash Book entries and prepare the Balance Sheet as at 30th June, 2011.
Solution-:
| Cash Book
Dr. Cr. |
| Date |
Particulars |
Amt. (₹) |
Particulars |
Amt. (₹) |
| 2011
Feb 01
Feb 28
May 01
June 30 |
Share Application
Share Allotment
Share First Call
Share Final Call |
40,000
80,000
1,19,700
1,58,400 |
Balance C/d |
3,98,100 |
|
|
3,98,100 |
|
3,98,100 |
| In the Books of Blue Chip Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
| 2011
Feb 01 |
Share Application A/c Dr.
To Share Capital A/c
(Share application of 40,000 shares at Re 1 each transferred to Share Capital Account) |
|
40,000 |
40,000 |
| Feb 01 |
Share Allotment A/c Dr.
To Share Capital A/c
(Share allotment due on 40,000 shares at Rs 2 each) |
|
80,000 |
80,000 |
| Mar 01 |
Share First Call A/c Dr.
To Share Capital A/c
(Share first call due on 40,000 shares at Rs 3 each) |
|
1,20,000 |
1,20,000 |
| May 30 |
Calls-in-Arrears A/c Dr.
To Share First Call A/c
(Share first call outstanding on 100 shares at Rs 3 each) |
|
300 |
300 |
| June 01 |
Share Final Call A/c Dr.
To Share Capital A/c
(Share final call due on 40,000 shares of Rs 4 each) |
|
1,60,000 |
1,60,000 |
| June 30 |
Calls-in-Arrears A/c Dr.
To Share Final Call A/c
(Share final call outstanding on 400 shares at Rs 4 each) |
|
1,600 |
1,600 |
| Blue Chip Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
2. Non-Current Liabilities
3. Current Liabilities |
1 |
3,98,100 |
| Total |
|
3,98,100 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
3 |
3,98,100 |
| Total |
|
3,98,100 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
1,00,000 shares of Rs 10 each
Issued Share Capital
42,000 shares of Rs 10 each
Subscribed, Called-up and Paid-up Share Capital
40,000 shares of Rs 10 each 4,00,000
Less: Calls-in-Arrears (1,900) |
10,00,000
4,20,000
3,98,100 |
| 2. |
Cash and Cash Equivalents
Cash at Bank |
3,98,100 |
Calls-in-Arrears and Calls-in-Advance
Question 23: Ghosh Ltd. made the second and final call on its 50,000 Equity Shares @ ₹ 2 per share on 1st January, 2016. The entire amount was received on 15th January, 2016 except on 100 shares allotted to Venkat. Pass necessary journal entries for the call money due and received by opening Calls-in-Arrears Account.
Solution-:
| In the Books of Ghosh Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
| 2016
Jan. 01 |
Share Second and Final Call A/c Dr.
To Equity Share Capital A/c
(Share second and final call due on 50,000 shares at Rs 2 per share) |
|
1,00,000 |
1,00,000 |
| 2016
Jan. 15 |
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Share Second and Final Call A/c
(Share second and final call received from 49,900 shares and 100 shares failed to pay the it) |
|
99,800
200 |
1,00,000 |
Question 24: Star Ltd was registered with a capital of ₹ 5,00,000 in shares of ₹ 10 each and issued 20,000 such shares at a premium of ₹ 2 per share, payable as ₹ 2 per share on application, ₹ 5 per share on allotment (including premium) and ₹ 2 per share on first call made three months later. All the money payable on application and allotment was duly received but when the first call was made, one shareholder paid the entire balance on his holding of 300 shares and another shareholder holding 1,000 shares failed to pay the first call money.
Pass journal entries to record the above transactions and show how they will appear in the company’s Balance Sheet.
Solution-:
| In the Books of Star Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Share Application A/c
(Share application money received for 20,000 shares at Rs 2 per share) |
|
40,000 |
40,000 |
|
Share Application A/c Dr.
To Share Capital A/c
(Share application of 20,000 shares at Rs 2 per share transferred to Share Capital Account) |
|
40,000 |
40,000 |
|
Share Allotment A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Share allotment due on 20,000 shares at Rs 5 per share including Rs 2 premium) |
|
1,00,000 |
60,000
40,000 |
|
Bank A/c Dr.
To Share Allotment A/c
(Share allotment received on 20,000 shares at Rs 5 per share) |
|
1,00,000 |
1,00,000 |
|
Share First Call A/c Dr.
To Share Capital A/c
(Share first call due on 20,000 shares at Rs 2 per shares) |
|
40,000 |
40,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Share First Call A/c
To Calls-in-Advance A/c
(Share first call received on 39,000 shares at Rs 2 each, 300 shares paid calls-in-advance at Rs 3 per share and 1,000 shares failed to pay to first call money) |
|
38,900
2,000 |
40,000
900 |
| Star Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
(b) Reserve & Surplus
2. Non-Current Liabilities
3. Current Liabilities
(a) Other Current Liability |
1
2
3 |
1,38,000
40,000
900 |
| Total |
|
1,78,900 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
4 |
1,78,900 |
| Total |
|
1,78,900 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
50,000 shares of Rs 10 each
Issued Share Capital
20,000 shares of Rs 10 each
Subscribed, Called-up and Paid-up Share Capital
20,000 shares of Rs 10 each, Rs 7 Called-up and Paid-u 1,40,000
Less: Calls-in-Arrears (2,000) |
5,00,000
2,00,000
1,38,000 |
| 2. |
Reserves 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 |
Question 25: Green Ltd. issued 8,000 Equity Shares of ₹ 10 each. ₹ 5 per share was called, payable ₹ 2 on application, ₹ 1 on allotment , ₹ 1 on first call and ₹ 1 on second call. All the money was duly received with the following exceptions:
A who holds 250 shares paid nothing after application.
B who holds 500 shares paid nothing after allotment.
C who holds 1,250 shares paid nothing after first call.
Prepare Journal and the Balance Sheet.
Solution-:
| In the Books of Green Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Share Application A/c
(Share application money received for 8,000 shares at Rs2 each) |
|
16,000 |
16,000 |
|
Share Application A/c Dr.
To Share Capital A/c
(Application money transferred to Share Capital) |
|
16,000 |
16,000 |
|
Share Allotment A/c Dr.
To Share Capital A/c
(Allotment due on 8,000 shares at Re 1 each) |
|
8,000 |
8,000 |
|
Bank A/c Dr.
Call-in-Arrears A/c Dr.
To Share Allotment A/c
(Allotment money received on 7,750 shares and 250 shares failed to pay it) |
|
7,750
250 |
8,000 |
|
Share First Call A/c Dr.
To Share Capital A/c
(First call due on 8,000 shares at Re 1 each) |
|
8,000 |
8,000 |
|
Bank A/c Dr.
Calls in Arrears A/c Dr.
To Share First Call A/c
(Share first call money received on 7,250 shares and 750 shares failed to pay it) |
|
7,250
750 |
8,000 |
|
Share Second Call A/c Dr.
To Share Capital A/c
(Share second call due on 8,000 shares at Rs l each) |
|
8,000 |
8,000 |
|
Bank A/c Dr.
Call-in-Arrears A/c Dr.
To Share Second Call A/c
(Share second call money received on 6,000 shares and 2000 shares failed to pay it) |
|
6,000
2,000 |
8,000 |
| Green Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
2. Non-Current Liabilities
3. Current Liabilities |
1 |
37,000 |
| Total |
|
37,000 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
2 |
37,000 |
| Total |
|
37,000 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
……. shares of Rs 10 each
Issued Share Capital
8,000 shares of Rs 10 each
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) |
80,000
37,000 |
| 2. |
Cash and Cash Equivalents
Cash at Bank |
37,000 |
Question 26: Bharat Ltd. made the first call of ₹ 2 per share on its 1,00,000 Equity Shares on 1st March, 2006. Ashok, a shareholder, holding 800 shares paid the second and final call amount along with the first call money. The second and final call amount was ₹ 3 per share. Pass necessary journal entries for recording the above using the Calls-in Advance Account.
Solution-:
| In the Books of Bharat Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
| March
2006 |
Equity Share First Call A/c Dr.
To Equity Share Capital A/c
(Shares first call due on 1,00,000 shares at Rs 2 per share) |
|
2,00,000 |
2,00,000 |
| March
2006 |
Bank A/c Dr.
To Equity Share First Call A/c
To Call-In-Advance A/c
(Share first call received with call-in-advance of 800 shares at Rs 3 per share) |
|
2,02,400 |
2,00,000
2,400 |
Issue of Shares for Consideration other than Cash
Question 27: 2,000 Equity Shares of ₹ 10 each were issued to X Limited from whom assets of ₹ 25,000 were acquired .
Pass Journal entry.
Solution-:
| In the Books of X Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Assets A/c Dr.
To X Ltd.
(Assets bought from X Ltd.) |
|
25,000 |
25,000 |
|
X Ltd. Dr.
To Share Capital A/c
To Securities Premium A/c
(2,000 shares of Rs 10 each issued to X Ltd.) |
|
25,000 |
20,000
5,000 |
Question 28: ‘Amrit Dhara Ltd.’ issued 800 Equity Shares of ₹ 100 each at a premium of 25% as fully paid-up in consideration of the purchase of plant and machinery of ₹ 1,00,000.
Pass entries in company’s Journal.
Solution-:
| In the Books of Amrit Dhara Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Plant & Machinery A/c Dr.
To Vendor A/c
(Machinery purchased) |
|
1,00,000 |
1,00,000 |
|
Vendor A/c Dr.
To Equity Share Capital A/c (800 × 100)
To Securities Premium A/c (800 × 25)
(Shares issued to vendor at a premium of ₹ 25 per share) |
|
1,00,000 |
80,000
20,000 |
Question 29: Rajan Ltd . purchased assets from Geeta & Co . for ₹ 5,00,000. A sum of ₹ 1,00,000 was paid by means of a bank draft and for the balance due Rajan Ltd. issued equity Shares of ₹ 10 each at a premium of 25%. journalise the above transactions in the books of the company.
Solution-:
| In the Books of Rajan Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Assets A/c Dr.
To Geeta & Co.
(Assets purchased from Geeta & Co.) |
|
5,00,000 |
5,00,000 |
|
Geeta & Co. Dr.
To Bank A/c
(Payment made to Geeta & Co.) |
|
1,00,000 |
1,00,000 |
|
Geeta & Co. Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(32,000 equity shares of Rs 10 issued at 25% premium) |
|
4,00,000 |
3,20,000
80,000 |
Question 30: Z Ltd . purchased furniture costing ₹ 2,20,000 from C.D Ltd. The payment was to be made by issue of 9% Preference Shares of ₹ 100 each ata premium of ₹ 10 per share . Pass necessary Journal entries in the books of Z Ltd.
Solution-:
| In the Books of Z Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Assets A/c Dr.
To C.D Ltd.
(Assets purchased from C.D Ltd.) |
|
2,20,000 |
2,20,000 |
|
C.D Ltd. Dr.
To 9% Preference Share Capital
To Securities Premium A/c
(2,000 9% Preference Shares of Rs 100 each issued at 10% premium to C.D Ltd.) |
|
2,20,000 |
2,00,000
20,000 |
Question 31: Goodluck Ltd purchased machinery costing ₹ 10,00,000 from Fair Deals Ltd. The company paid the price by issue of Equity Shares of ₹ 10 each at a premium of 25%.
Pass necessary Journal entries for the above transactions in the books of Goodluck Ltd.
Solution-:
| In the Books of Goodluck Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Machinery A/c Dr.
To Fail Deals Ltd.
(Machinery purchased from Fair Deals Ltd.) |
|
10,00,000 |
10,00,000 |
|
Fair Deals Ltd. Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(80,000 equity shares of Rs 10 each issued at 25% premium) |
|
10,00,000 |
8,00,000
2,00,000 |
Question 32: Jain Ltd purchased machinery costing ₹ 10,00,000 from Ayer Ltd. 50% of the payment was made by cheque and for the remaining 50% , the company issued Equity Shares of ₹ 100 each at a premium of 25% . Pass necessary Journal entries in the books of Jain Ltd . for the above transaction.
Solution-:
| In the Books of Jain Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Machinery A/c Dr.
To Ayer Ltd.
(Machinery purchased from Ayer Ltd.) |
|
10,00,000 |
10,00,000 |
|
Ayer Ltd. Dr.
To Bank A/c
(Payment made to Ayer Ltd.) |
|
5,00,000 |
5,00,000 |
|
Ayer Ltd. Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(4,000 equity shares of Rs 100 each issued at 25% premium) |
|
5,00,000 |
4,00,000
1,00,000 |
Question 33: Sona Ltd. purchased machinery costing ₹ 17,00,000 from Mona Ltd. Sona Ltd. paid 20% of the amount by cheque and for the balance amount issued Equity Shares of ₹ 100 each at a premium of 25% . Pass necessary Journal entries for the above transactions in the books of Sona Ltd .Show your working notes clearly.
Solution-:
| In the Books of Sona Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Machinery A/c Dr.
To Mona Ltd.
(Machinery purchased on credit from Sona Ltd.) |
|
17,00,000 |
17,00,000 |
|
Mona Ltd. Dr.
To Bank A/c
(20% amount paid through cheque) |
|
3,40,000 |
3,40,000 |
|
Mona Ltd. (17,00,000 – 3,40,000) Dr.
To Equity Share Capital*
To Securities Premium A/c*
(Issued 10,880 shares of Rs 100 each to Mona Ltd. at 25% Premium) |
|
13,60,000 |
10,88,000
2,72,000 |
Question 34: Light Lamps Ltd. issued 50,000 shares of ₹ 10 each as fully paid-up to the promoters for their services to set-up the company . It also issued 2,000 shares of ₹ 10 each credited as fully paid-up to the underwriters of shares for their services . journalise these transactions.
Solution-:
| In the Books of Light Lamps Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Incorporation Expenses A/c Dr.
To Share Capital A/c (50,000×10)
(Shares issued to promoters) |
|
5,00,000 |
5,00,000 |
|
Underwriting Commission A/c Dr.
To Underwriters’ A/c
(Underwriting commission due) |
|
20,000 |
20,000 |
|
Underwriters’ A/c Dr.
To Share Capital A/c (2,000×10)
(Shares issued to underwriters) |
|
20,000 |
20,000 |
Question 35: Bharat Lamp Ltd. issued 30,000 fully paid-up shares of ₹ 100 each for purchase of the following assets and liabilities from Sharma & Co:
Plant
|
₹ 7,00,000
|
Stock-in-Trade
|
₹ 9,00,000
|
Land and Building
|
₹ 12,00,000
|
Sundry Creditors
|
₹ 2,00,000
|
You are required to pass necessary Journal entries.
Solution-:
| In the Books of Bharat Lamp Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Goodwill A/c Dr.
Plant A/c Dr.
Stock-in-Trade A/c Dr.
Land and Building Dr.
To Sundry Creditors A/c
To Sharma & Co
(Asset purchased and liabilities accepted from Sharma & Co) |
|
4,00,000
7,00,000
9,00,000
12,00,000 |
2,00,000
30,00,000 |
|
Sharma & Co Dr.
To Share Capital A/c
(30,000 shares of Rs 100 each issued to Sharma & Co.) |
|
30,00,000 |
30,00,000 |
Question 36: Sure Ltd. purchased a running business from M/s. Rai Brothers for a sum of ₹ 15,00,000 payable ₹ 12,00,000 in fully paid shares of ₹ 10 each and balance through cheque.
The assets and liabilities consisted of the following:
Plant and Machinery
|
₹ 4,00,000
|
Stock
|
₹ 4,00,000
|
Building
|
₹ 4,00,000
|
Cash
|
₹ 3,00,000
|
Sundry Debtors
|
₹ 3,00,000
|
Sundry Creditors
|
₹ 2,00,000
|
You are required to pass necessary Journal entries in the company’s books.
Solution-:
| In the Books of Sure Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Plant and Machinery Dr.
Building A/c Dr.
Sundry Debtors A/c Dr.
Stock A/c Dr.
Cash A/c Dr.
To Sundry Creditors A/c
To M/s Rai Brothers
To Capital Reserve A/c
(Business of M/s Rai Brothers took over) |
|
4,00,000
4,00,000
3,00,000
4,00,000
3,00,000 |
2,00,000
15,00,000
1,00,000 |
|
M/s Rai Brothers Dr.
To Share Capital A/c
(Shares issued to M/s Rai Brothers) |
|
12,00,000 |
12,00,000 |
|
M/S Rai Brothers Dr.
To Bank A/c
(Payment made to M/s Rai Brothers through cheque) |
|
3,00,000 |
3,00,000 |
Question 37: Sandesh Ltd. took over the assets of ₹ 7,00,000 and liabilities of ₹ 2,00,000 from Sanchar Ltd. for a purchase consideration of ₹ 4,59,500. ₹ 8,500 were paid by accepting a draft in favour of Sanchar Ltd. payable after three months and the balance was paid by issue of equity shares of ₹ 10 each at a premium of 10% in favour of Sanchar Ltd.
Pass necessary journal entries for the above transactions in the books of Sandesh Ltd.
Solution-:
| In the Books of Sandesh Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
| (i) |
Sundry Assets A/c Dr.
To Sundry Liabilities A/c
To Sanchar Ltd.
To Capital Reserve A/c
(Purchase of assets and liabilities of Sanchar Ltd.) |
|
7,00,000 |
2,00,000
4,59,500
40,500 |
| (ii) |
Sanchar Ltd. Dr.
To Equity Share Capital A/c
To Securities Premium A/c
To Bank A/c
(41,000 Equity Shares issued of Rs 10 each at a premium of Re 1 per share and Rs 8,500 by bank draft) |
|
4,59,500 |
4,10,000
41,000
8,500 |
Question 38: Better Prospect Ltd. acquired land costing ₹ 1,00,000 and in payment allotted 1,000 Equity Shares of ₹ 100 each as fully paid. Further, the company issued 4,000 Equity Shares to public . The shares were payable as:
₹ 30 on application
₹ 30 on allotment
₹ 40 on first and final call.
Applications were received for all shares which were allotted . All the money was received except the call on 200 shares.
Pass journal entries and prepare Balance Sheet of the company.
Solution-:
| In the Books of Better Prospect Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Land A/c Dr.
To Vendor
(Land purchased from the vendor) |
|
1,00,000 |
1,00,000 |
|
Vendor Dr.
To Equity Share Capital A/c
(1,000 equity of Rs 100 each issued to Vendor) |
|
1,00,000 |
1,00,000 |
|
Bank A/c Dr.
To Equity Share Application A/c
(Share Application money received for 4,000 equity shares at Rs 30 per share) |
|
1,20,000 |
1,20,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital
(Share Application money of 4,000 shares transferred to Equity Share Capital Account) |
|
1,20,000 |
1,20,000 |
|
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
(Share allotment due on 4,000 equity shares of Rs 30 each) |
|
1,20,000 |
1,20,000 |
|
Bank A/c Dr.
To Share Allotment A/c
(Share allotment received for 4,000 shares at Rs 30 per share) |
|
1,20,000 |
1,20,000 |
|
Share First and Final Call A/c Dr.
To Equity Share Capital A/c
(First and final call due on 4,000 equity shares at 40 per share) |
|
1,60,000 |
1,60,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Share First and Final Call A/c
(First and final call received from 3,800 shares and 200 share failed to pay it) |
|
1,52,000
8,000 |
1,60,000 |
| Better Prospect Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
2. Non-Current Liabilities
3. Current Liabilities |
1 |
4,92,000 |
| Total |
|
4,92,000 |
| (ii). ASSETS
1. Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets
2. Current Assets
(a) Cash and Cash Equivalents |
2 |
1,00,000
3,92,000 |
| Total |
|
4,92,000 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
…… shares of Rs 100 each
Issued Share Capital
5,000 shares of Rs 100 each
Subscribed, Called-up and Paid-up Share Capital
1,000 shares of Rs 100 each (for consideration other than cash) 1,00,000
4,000 shares of Rs 100 each 4,00,000
Less: Calls-in-Arrears (8,000) |
5,00,000
4,92,000 |
| 2. |
Tangible Assets
Land |
1,00,000 |
| 3. |
Cash and Cash Equivalents
Cash at Bank |
3,92,000 |
Forfeiture of Shares which were Issued at Par
Question 40: Alpha Ltd. issued 20,000 Equity Shares of ₹ 10 each at par payable: On application ₹ 2 per share; on allotment ₹ 3 per share; on first call ₹ 3 per share; on second and final call ₹ 2 per share.
Mr. Gupta was allotted 100 shares. Pass necessary Journal entry relating to the forfeiture of shares in each of the following alternative cases:
| Case I |
If Mr. Gupta failed to pay the allotment money and his shares were immediately forfeited. |
| Case II |
If Mr. Gupta failed to pay allotment money and on his subsequent failure to pay the first call, his shares were forfeited. |
| Case III |
If Mr. Gupta failed to pay the first call and on his subsequent failure to pay the second and final call, his shares were forfeited. |
Solution-:
| In the Books of Alpha Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
| Case – I |
Share Capital A/c (100×5) Dr.
To Share Forfeiture A/c
To Share Allotment A/c
(100 shares of Rs 10 each, Rs 5 called-up, forfeited for the non-payment of allotment) |
|
500 |
200
300 |
| Case – ii |
Share Capital A/c (100 × 8) Dr.
To Share Forfeiture A/c
To Share Allotment A/c
To Share First Call A/c
(100 shares of Rs 10 each, Rs 8 called-up forfeited for non-payment allotment and first-call) |
|
800 |
200
300
300 |
| Case – iii |
Share Capital A/c Dr.
To Share Forfeiture A/c
To Share First Call A/c
To Share Final Call A/c
(100 shares of Rs 10 each forfeited for the non-payment Rs 5 each) |
|
1,000 |
500
300
200 |
Forfeiture of Shares which were issued at Premium
Question 41: Ankit Ltd. issued 20,000 equity shares of 10 each at a premium of ₹ 2 per share, payable as:
| On Application |
₹ 3 |
| On Allotment |
₹ 5 (including premium) |
| On First Call |
₹ 2 |
| On Second and Final Call |
₹ 2 |
Vijay was allotted 500 shares. Pass the necessary Journal entries relating to the forfeiture of shares in following cases.
| Case I |
Vijay did not pay allotment money and his shares were immediately forfeited. |
| Case II |
Vijay did not pay allotment and first call, his shares were forfeited after first call. |
| Case III |
Vijay failed to pay first call and his shares were forfeited immediately. |
| Case IV |
Vijay failed to pay both the calls and his shares were forfeited. |
Solution-:
Case I – :
| In the Books of Ankit Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c (500 × 6) Dr.
Securities Premium Reserve A/c (500 × 2 ) Dr.
To Share Forfeiture A/c (500 × 3)
To Share Allotment A/c (500 × 5)
(Being 500 shares forfeited for non-payment of allotment money) |
|
3,000
1,000 |
1,500
2,500 |
Case II:
| In the Books of Ankit Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c (500 × 8) Dr.
Securities Premium Reserve A/c (500 × 2) Dr.
To Share Forfeiture A/c (500 × 3)
To Share Allotment A/c (500 × 5)
To Share First Call A/c (500 × 2)
(Being 500 shares forfeited for non-payment of allotment and first call) |
|
4,000
1,000 |
1,500
2,500
1,000 |
Case III:
| In the Books of Ankit Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c (500 × 8) Dr.
To Share Forfeiture A/c (500 × 6)
To Share First Call A/c (500 × 2)
(Being 500 shares forfeited for non-payment of first call) |
|
4,000 |
3,000
1,000 |
Case IV:
| In the Books of Ankit Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c (500 × 10) Dr.
To Share Forfeiture A/c (500 × 6)
To Share First Call A/c (500 × 2)
To Share Second and Final Call (500 × 2)
(Being 500 shares forfeited for non-payment of first and second call) |
|
5,000 |
3,000
1,000
1,000 |
Question 43: Black Stone Ltd. issued 10,000 Equity Shares of ₹ 10 each at a premium of ₹ 3 per share payable ₹ 5 on application, ₹ 5 (including premium) on allotment and the balance on first call. All the shares offered were applied for and allotted. All the money due on allotment was received except on 200 shares. Call was made. All the amount due thereon was received except on 300 shares. Directors forfeited 200 shares on which both allotment and call money were not received.
Pass necessary Journal entries to record the above.
Solution-:
| In the Books of Black Stone Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Equity Share Application A/c
(Share application money received for 10,000 shares at Rs 5 each) |
|
50,000 |
50,000 |
|
Equity Share Application A/c Dr.
To Equity Share capital A/c
(Share application money transferred to Share Capital Account) |
|
50,000 |
50,000 |
|
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
To Securities Premium
(Share allotment due on 10,000 shares at Rs 5 per share including premium Rs 3) |
|
50,000 |
20,000
30,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Equity Share Allotment A/c
(All allotment money received except 200 shares) |
|
49,000
1,000 |
50,000 |
|
Equity Share First and Final Call A/c Dr.
To Equity Share Capital A/c
(First and final due on 10,000 shares at Rs 3 per share) |
|
30,000 |
30,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Equity Share First and Final Calls A/c
(First and final call received on all shares except 300 shares) |
|
29,100
900 |
30,000 |
|
Equity Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(200 shares forfeited for the non-payment of Rs 8 per share including Rs 3 premium) |
|
2,000
600 |
1,000
1,600 |
Forfeiture and Reissue of Shares which were Issued at Par
Question 44: A company issued 10,000 shares of the value of ₹ 10 each , payable ₹ 3 on application, ₹ 3 on allotment and ₹ 4 on the first and final call . All amounts are duly received except the call money on 100 shares . These shares are subsequently forfeited by Directors and are resold as fully paid-up for ₹ 500 .
Give necessary journal entries for the transactions.
Solution-:
| In the Books of ……. Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Share Application A/c
(Share application money received for 10,000 shares at Rs 3 each) |
|
30,000 |
30,000 |
|
Share Application A/c Dr.
To Share Capital A/c
(Share application money transferred to Share Capital) |
|
30,000 |
30,000 |
|
Share Allotment A/c Dr.
To Share Capital A/c
(Allotment due on 10,000 shares at Rs 3 per shares) |
|
30,000 |
30,000 |
|
Bank A/c Dr.
To Share Allotment A/c
(Share allotment money received) |
|
30,000 |
30,000 |
|
Share First and Final Call A/c Dr.
To Share Capital A/c
(First and final call due on 10,000 shares at Rs 4 each) |
|
40,000 |
40,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Share First and Final Call
(First and final call of Rs 4 per share received on 9,900 shares, and 100 shares failed to pay it) |
|
39,600
400 |
40,000 |
|
Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(100 shares of Rs 10 each forfeited for the non-payment of first and final call Rs 4 per share) |
|
1,000 |
600
400 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(100 shares of Rs 10 each re-issued for the sum of Rs 500) |
|
500
500 |
1,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture Account after re-issue of shares, transferred to Capital Reserve Account) |
|
100 |
100 |
Question 45: X Ltd. forfeited 900 Equity Shares of ₹ 100 each for the non-payment of allotment money of ₹ 30 per share and the first call of ₹ 20 per share. The second and final call of ₹ 25 per share has not been made . The forfeited shares were reissued for ₹ 90 per share , ₹ 75 paid-up. Journalise the above.
Solution-:
| In the Books of X Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Equity Share Capital A/c (900×75) Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(900 shares of Rs 100 each Rs 75 called-up, forfeited for the non-payment sum of allotment Rs 30 and first call Rs 20 per share) |
|
67,500 |
22,500
45,000 |
|
Bank A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(900 shares of Rs 100 each re-issued as Rs 75 paid-up for Rs 90 each) |
|
81,000 |
67,500
13,500 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance of Share Forfeiture Account after re-issue, transferred to Capital Reserve Account) |
|
22,500 |
22,500 |
Question 46: The Directors of M Ltd resolved on 1st May, 2015 that 2,000 Equity Shares of ₹ 10 each , ₹ 7.50 paid be forfeited for non-payment of final call of ₹ 2.50 . On 10th June, 2015, 1,800 of these shares were reissued for ₹ 6 per share . Give necessary Journal entries .
Solution-:
| In the Books of M Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
| 2012
May 01 |
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Call-in-Arrears A/c
(2,000 shares of Rs 10 each forfeited for non-payment of final call Rs 2.5 per share) |
|
20,000 |
15,000
5,000 |
| June 10 |
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(1,800 shares of Rs 10 each re-issued at Rs 6 per share fully paid-up) |
|
10,800
7,200 |
18,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Shares Forfeiture Account of 1,800 re-issue, transferred to Capital Reserve Account) |
|
6,300 |
6,300 |
Working Notes:
| Share Forfeiture |
7.5 Cr. |
| Share Forfeiture |
4 Dr. |
| Balance in Share Forfeiture Account after re-issue |
3.5 Cr. per share |
|
| Capital Reserve =
No. of Shares reissued × Balance in Share Forfeiture Account after reissue (per share)
= 1,800 × Rs 3.5 (per share)
= Rs 6,300 |
Question 47 : Super Star Ltd. makes an issue of 10,000 Equity Shares of ₹ 100 each, payable as:
On application and allotment
|
₹ 50 per share,
|
On first call
|
₹ 25 per share
|
On second and final call
|
₹ 25 per share
|
Members holding 400 shares did not pay the second and final call and the shares are duly forfeited, 200 of which are reissued as fully paid-up @₹ 50 per share. Pass journal entries in the books of the company.
Solution-:
| In the Books of Super Star Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Equity Share Application and Allotment A/c
(Share Application and Allotment money received for 10,000 shares at Rs 50 each) |
|
5,00,000 |
5,00,000 |
|
Equity Share Application and Allotment A/c Dr.
To Equity Share Capital A/c
(Share Application and Allotment money transferred to Equity Share Capital Account) |
|
5,00,000 |
5,00,000 |
|
Equity Share First Call A/c Dr.
To Equity Share Capital A/c
(Share First Call due on 10,000 shares of Rs 25 each) |
|
2,50,000 |
2,50,000 |
|
Bank A/c Dr.
To Equity Share First-Call A/c
(First Call money received) |
|
2,50,000 |
2,50,000 |
|
Equity Share Final Call A/c Dr.
To Equity Share Capital A/c
(Equity Share Final Call due on 10,000 shares of Rs 25 each) |
|
2,50,000 |
2,00,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Equity Share Final Call A/c
(Share Final Call of Rs 25 per share received on 9,600 shares and holders of 400 shares failed to pay it) |
|
2,40,000
10,000 |
2,50,000 |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls-In-Arrears A/c
(400 shares of Rs 100 each forfeited for the non-payment final call Rs 25 per share) |
|
40,000 |
30,000
10,000 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(200 shares of Rs 100 each re-issued at Rs 50 per share fully paid-up) |
|
10,000
10,000 |
20,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture of 200 shares of after re-issue, transferred to Capital Reserve) |
|
5,000 |
5,000 |
Question 48: Sunshine Ltd. issued 20,000 shares of ₹ 100 each payable ₹ 25 per share on application , ₹ 25 per share on allotment and the balance in two calls of ₹ 25 each. The company did not make the final call of ₹ 25 per share. All the money was duly received with the exception of the amount due on the first call on 400 shares held by Mr. Modi. The Board of Directors forfeited these shares and subsequently reissued them @ ₹ 75 per share paid-up for a sum of ₹ 28,000.
Journalise the above transactions and prepare Share Capital Account.
Solution-:
| In the Books of Sunshine Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Share Application A/c
(Share application money received for 20,000 shares at Rs 25 each) |
|
5,00,000 |
5,00,000 |
|
Share Application A/c Dr.
To Share Capital A/c
(Application money transferred to Share Capital Account) |
|
5,00,000 |
5,00,000 |
|
Share Allotment A/c Dr.
To Share Capital A/c
(Share Allotment due on 20,000 shares at Rs 25 each) |
|
5,00,000 |
5,00,000 |
|
Bank A/c Dr.
To Share Allotment A/c
(Allotment money received) |
|
5,00,000 |
5,00,000 |
|
Share First Call A/c Dr.
To Share Capital A/c
(Share First Call due on 20,000 shares of Rs 25 each) |
|
5,00,000 |
5,00,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Share First Call A/c
(Share First Call Rs 25 per share received on 19,600 shares and a holder of 400 shares did not pay it) |
|
4,90,000
10,000 |
5,00,000 |
|
Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(400 shares of Rs 100 each, Rs 75 called-up, forfeited for the non-payment of Share First Call Rs 25 per share) |
|
30,000 |
20,000
10,000 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(400 shares of Rs 100 each, Rs 75 paid-up, reissued for the sum of Rs 28,000) |
|
28,000
2,000 |
30,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in share forfeiture after re-issue, transferred to capital reserve) |
|
18,000 |
18,000 |
| Share Capital A/C
Dr. Cr. |
| Particulars |
Amt. (₹) |
Particulars |
Amt. (₹) |
| Share Forfeiture
Calls-in-Arrears
Balance c/d |
20,000
10,000
15,00,000 |
Share Application
Share Allotment
Share First Call
Bank
Share Forfeiture |
5,00,000
5,00,000
5,00,000
28,000
2,000 |
|
15,30,000 |
|
15,30,000 |
Working Note-
| Share Forfeiture Credit |
20,000 |
| Less: Share Forfeiture Debit |
2,000 |
| Balance in Share Forfeiture Account after re-issue |
18,000 |
|
| Capital Reserve = Balance in Share Forfeiture Account after re-issue
= ₹ 18,000 |
Question 49: The Hindustan Manufacturing Ltd. had a total subscribed capital of ₹ 10,00,000 in Equity Shares of ₹ 10 each of which ₹ 7.50 were called-up. A final call of ₹ 2.50 was made and all amount paid except two calls of ₹ 2.50 each in respect of 100 shares held by D . These shares were forfeited and reissued at ₹ 8 per share .
Pass necessary journal entries (including that of cash) to record the transactions of final call , forfeiture of shares and reissue of forfeited shares . Also, prepare the Balance Sheet of the company.
Solution-:
| In the Books of Hindustan Manufacturing Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Equity Share Final Call A/c Dr.
To Equity Share Capital A/c
(Share Final Call due on 1,00,000 shares at Rs 2.5 per share) |
|
2,50,000 |
2,50,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Equity Share Final Call A/c
(Share Final Call of Rs 2.5 per share received from 99,900 shares and 100 shares did not pay it) |
|
2,49,750
250 |
2,50,000 |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(100 shares of Rs 10 each forfeited for the non-payment of two calls of Rs 2.5 each) |
|
1,000 |
500
500 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(100 shares of Rs 10 each reissued at Rs 8 per share, fully paid-up) |
|
800
200 |
1,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture Account after re-issue of shares, transferred to Capital Reserve) |
|
300 |
300 |
| Hindustan Manufacturing Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
(b) Reserve & Surplus
2. Non-Current Liabilities
3. Current Liabilities |
1
2 |
10,00,000
300 |
| Total |
|
10,00,300 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
3 |
10,00,300 |
| Total |
|
10,00,300 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
1,00,000 shares of Rs 10 each
Issued Share Capital
1,00,000 shares of Rs 10 each
Subscribed, Called-up and Paid-up Share Capital
1,00,000 shares of Rs 10 each |
10,00,000
10,00,000
10,00,000 |
| 2. |
Reserves and Surplus
Capital Reserve |
300 |
| 3. |
Cash and Cash Equivalents
Cash at Bank |
10,00,300 |
Working Notes:
| Share Forfeiture Credit (100 shares × Rs 5 each) |
500 |
| Less: Share Forfeiture Debit (100 share × Rs 2 each) |
200 Loss on re-issue |
| Balance in Share Forfeiture Account after re-issue |
300 |
|
| Capital Reserve = Balance in Share Forfeiture Account after re-issue = Rs 300 |
Question 50: On 1st May,2014, Directors of a Limited Company forfeited 200 shares of ₹ 20 each , ₹ 15 per share called-up, on which ₹ 10 per share has been paid by A , the amount of the first call of ₹ 5 per share being unpaid . Ten days Later, the Directors reissued the forfeited shares to B credited as ₹ 15 per share paid-up , for a payment of ₹ 10 per share.
Give journal entries in the company’s books to record the forfeited shares and their reissue.
Solution-:
| In the Books of Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
| 2014
May 01 |
Share Capital A/c (15 × 200) Dr.
To Share Forfeiture A/c (10 × 200)
To Calls-in-Arrears A/c (5 × 200)
(200 shares of Rs 20 each, Rs 15 called-up forfeited for the non-payment Rs 5 per share) |
|
3,000 |
2,000
1,000 |
| 2014
May 11 |
Bank A/c (10 × 200) Dr.
Share Forfeiture A/c (5 × 200) Dr.
To Share Capital A/c (15 × 200)
(200 shares of Rs 20 each re-issued at Rs 10 each, Rs 15 paid-up) |
|
2,000
1,000 |
3,000 |
| 2014
May 11 |
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in share forfeiture after re-issue transferred to Capital Reserve) |
|
1,000 |
1,000 |
Working Note-
| Share Forfeiture Credit (at the time of forfeiture) |
2,000 |
| Less: Share Forfeiture Debit (at the time of re-issue) |
1,000 |
| Balance in Share Forfeiture Account after re-issue |
1,000 |
|
| Capital Reserve = Balance in Share Forfeiture Account after re-issue
= Rs 1,000 |
Question 51: X Ltd . forfeited 100 shares of ₹ 10 each (₹ 8 called-up) issued at a premium of ₹ 2 per share to Mr. R, on which he had paid applications money of ₹ 5 per share , for non-payment of allotment money of ₹ 5 per share (including premium). Out of these, 70 shares were reissued to Mr . Sanjay as ₹ 8 called-up for ₹ 7 per share. Give necessary journal entries relating to forfeiture and reissue of shares.
Solution-:
| In the Books of X Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c (100 × 8) Dr.
Securities Premium A/c (100 × 2) Dr.
To Share Forfeiture A/c (100 × 5)
To Calls-in-Arrears A/c (100 × 5)
(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) |
|
800
200 |
500
500 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(70 shares of Rs 10 each re-issued at Rs 7 per share, Rs 8 paid-up) |
|
490
70 |
560 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance of 70 shares re-issued shares in Share Forfeiture Account transferred to Capital Reserve) |
|
280 |
280 |
Working Note-
| Share Forfeiture Credit |
₹ 5 per share |
| Less: Share Forfeiture Debit |
₹ 1 per share |
| Balance in Share Forfeiture of re-issued shares |
₹ 4 per share |
|
| Capital Reserve = Balance in Share Forfeiture Account of re-issued shares × No. of shares re-issued
= 70 × 4
= Rs 280 |
Question 52: Bee Ltd. Company forfeited 100 Equity Shares of the face value of ₹ 10 each, ₹ 6 per share called-up, for non-payment of first call of ₹ 2 per share. The forfeited shares were subsequently reissued as fully paid-up @ ₹ 7 each.
Give necessary entries in the company’s Journal.
Solution-:
| In the Books of Bee Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(100 shares of Rs 10 each Rs 6 called up, forfeited for the non-payment of first call Rs 2 per shares) |
|
600 |
400 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(100 shares of 10 each re-issued at Rs 7 per share, fully paid-up) |
|
700
300 |
200
1,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture of re-issued shares transferred to Capital Reserve) |
|
100 |
100 |
Working Note-
| Share Forfeiture Credit |
400 |
| Share Forfeiture Debit |
300 |
| Balance in Share Forfeiture of re-issued shares |
100 |
|
| Capital Reserve = Balance in Share Forfeiture of re-issued shares = ₹ 100 |
Question 53: Give necessary journal entries:
(i) The Directors of Devendra Ltd. resolved on 1st January, 2010 that Equity Shares of ₹ 10 each, ₹ 8 paid-up be forfeited for non-payment of final call of ₹ 2. On 1st February, 60 of these shares were reissued @ ₹ 7 per share as fully paid-up.
(ii) Virender Limited forfeited 20 shares of ₹ 100 each(₹ 60 called-up) issued at par to Mukesh on which he had paid ₹ 20 per share . Out of these, 15 shares were reissued to Sanjeev as ₹ 60 paid-up for ₹ 45 per share.
Solution-:
(i)
| In the Books of Devendra Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(100 shares of Rs 10 each forfeited for the non-payment of Rs 2 per share) |
|
1,000 |
800
200 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(60 shares of Rs 10 each re-issued at Rs 7 per share, fully paid-up) |
|
420
180 |
600 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture Account of 60 shares after re-issue transferred to Capital Reserve) |
|
300 |
300 |
Working Note:
| Forfeiture of re-issued shares |
| Share Forfeiture Credit |
₹ 480 |
| Share Forfeiture Debit |
₹ 180 |
| Balance in Share Forfeiture after re-issue |
₹ 300 |
| General Reserve |
|
| In the Books of Virender Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(20 shares of Rs 100 each Rs 60 called-up forfeited for the non-payment of Rs 40 per share) |
|
1,200 |
400
800 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(15 shares of Rs 100 each re-issued for Rs 45 per share as Rs 60 paid-up) |
|
675
225 |
900 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture of 15 re-issued shares transferred to Capital Reserve) |
|
75 |
75 |
Working Note:
| Forfeiture of reissued shares |
| Share Forfeiture Credit (at the time of forfeiture ) |
₹ 300 |
| Share Forfeiture Debit (at the time of re-issue) |
₹ 225 |
| Balance in Share Forfeiture after re-issue |
₹ 75 |
Capital Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued
= Rs 5 × 15 Shares
= Rs 75
Question 54: Show the forfeiture and reissue entries under each of the following cases:
(i) X Ltd. forfeited 300 shares of ₹ 10 each, ₹ 8 called-up held by Mr. A for non-payment of second call money of ₹ 3 per share. These shares were reissued to Mr. Z for ₹ 10 per share as fully paid-up.
(ii) Y Ltd. forfeited 400 shares of ₹ 10 each, fully called-up, held by Mr. B for non-payment of final call money of ₹ 4 per share. These shares were reissued to Mr. T at ₹ 12 per share as fully paid-up.
(iii) Light Ltd. forfeited 250 shares of ₹ 10 each, fully called-up held by Mr. C for non-payment of allotment money of ₹ 3 per share and first and final call money of ₹ 4 per share. These shares were reissued @ ₹ 8 per share as fully paid-up to Mr. P.
Solution-:
(i)
| In the Books of X Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(300 shares of ₹ 10 each on which had called ₹ 8, forfeited for non-payment of second call ₹ 3 per share) |
|
2,400 |
1,500
900 |
|
Bank A/c Dr.
To Share Capital A/c
(300 shares of ₹ 10 each re-issued) |
|
3,000 |
3,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve) |
|
1,500 |
1,500 |
Working Notes-
| Share Forfeiture Credit (at the time of forfeiture of shares) |
1,500 |
| Less: Share Forfeiture Debit (at the time of re-issue shares) |
Nil |
| Balance in Share Forfeiture after re-issue of shares |
1,500 |
|
| Capital Reserve = Balance in Share Forfeiture of re-issued shares
= ₹ 1,500 |
(ii)
| In the Books of Y Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(400 shares of ₹ 10 forfeited for the non-payment of final call ₹ 4 per share) |
|
4,000 |
2,400
1,600 |
|
Bank A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(400 shares of ₹10 each re-issued at ₹ 12 per share as fully paid-up) |
|
4,800 |
4,000
800 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance of Share Forfeiture after re-issue transferred to Capital Reserve) |
|
2,400 |
2,400 |
Working Notes-
| Share Forfeiture Credit (at the time of forfeiture of shares) |
2,400 |
| Less: Share Forfeiture Debit (at the time of re-issue shares) |
Nil |
| Balance in Share Forfeiture after re-issue of shares |
2,400 |
|
| Capital Reserve = Balance in Share Forfeiture of re-issued shares
= ₹ 2,400 |
(iii)
| In the Books of Light Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c Dr.
To Share Forfeiture A/c (250×3)
To Calls-in-Arrears A/c
(250 shares of ₹ 10 each forfeited for the non-payment ₹ 7 per share) |
|
2,500 |
750
1,750 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(250 shares of ₹ 10 each re-issued for ₹ 8 per share as fully paid-up ) |
|
2,000
500 |
2,500 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve) |
|
250 |
250 |
Working Notes-
| Share Forfeiture Credit (at the time of forfeiture of shares) |
750 |
| Less: Share Forfeiture Debit (at the time of re-issue shares) |
500 |
| Balance in Share Forfeiture after re-issue of shares |
250 |
|
| Capital Reserve = Balance in Share Forfeiture of re-issued shares = ₹ 250 |
Question 55: Record the journal entries for forfeiture and reissue of shares in the following cases:
(i) Basak Ltd. forfeited 20 shares of ₹ 10 each, ₹ 7 called-up on which the shareholder had paid application and allotment money of ₹ 5 per share. Out of these, 15 shares were reissued to Naresh as ₹ 7 per share paid-up for ₹ 8 per share.
(ii) Y Ltd. forfeited 90 shares of ₹ 10 each, ₹ 8 called-up issued at a premium of ₹ 2 per share to ‘R’ for non-payment of allotment money of ₹ 5 per share (including premium). Out of these, 80 shares were reissued to Sanjay as ₹ 8 called-up for ₹ 10 per share.
Solution-:
(i)
| In the Books of Basak Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c (20 Shares × 7) Dr.
To Share Forfeiture A/c (20 Shares × 5)
To Calls-in- Arrears A/c (20 Shares × 2)
(20 Shares of Rs 10 each, Rs 7 called-up forfeited for the non-payment of call) |
|
140 |
100
40 |
|
Bank A/c (15 Shares × 8) Dr.
To Share Capital A/c (15 Shares × 7)
To Securities Premium A/c (15 Shares × 1)
(15 shares were reissued as Rs 7 paid-up for Rs 8 per share) |
|
120 |
105
15 |
|
Shares Forfeiture A/c (15 Shares × 5) Dr.
To Capital Reserve A/c
(Transfer of profit on re-issue of 15 shares) |
|
75 |
75 |
(ii)
| In the Books of Y Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c (90 Shares × 8) Dr.
Securities Premium A/c (90 Shares × 2) Dr.
To Share Forfeiture A/c (90 Shares × 5)
To Share Allotment A/c (90 Shares × 5)
(Shares forfeited for non-payment of allotment) |
|
720
180 |
450
450 |
|
Bank A/c (80 Shares × 10) Dr.
To Share Capital A/c (80 Shares × 8)
To Securities Premium A/c (80 Shares × 2)
(80 shares were reissued for Rs 10, Rs 8 called-up) |
|
800 |
640
160 |
|
Shares Forfeiture A/c (80 Shares × 5) Dr.
To Capital Reserve A/c
(Transfer of profit on re-issue of 80 shares) |
|
400 |
400 |
Question 56: Star Ltd. forfeited 500 Equity Shares of ₹ 100 each for non-payment of first call of ₹ 30 per share . The final call of ₹ 10 per share was not yet made. Out of these, 60% shares were reissued for ₹ 39,000 fully paid. journalise the forfeiture and reissue of shares.
Solution-:
| In the Books of Star Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Equity Share Capital A/c (500×90) Dr.
To Equity Share 1st Call A/c (500×30)
To Share Forfeited A/c (500×60)
( 500 equity shares forfeited for non-payment of final call) |
|
45,000 |
15,000
30,000 |
|
Bank A/c (300×130) Dr.
To Equity Share Capital A/c (300×100)
To Security Premium Reserve A/c (300×30)
(300 shares are reissued @130 per share) |
|
39,000 |
30,000
9,000 |
|
Share Forfeited A/c Dr.
To Capital Reserve A/c
( Profit on reissue of 300 shares transferred to Capital Reserve) |
|
18,000 |
18,000 |
Working Note:
| Amount transferred to Capital Reserve |
| Shares Re-issued |
300 |
| Shares Forfeited |
500 |
| Amount forfeited in respect of 300 shares |
18,000 |
| Amount Forfeited × Shares Re-issued Shares Forfeited
= 30,000×300500=18,000 |
Question 57: A holds 100 shares of ₹ 10 each on which he has paid ₹ 1 per share on application.
B holds 200 shares of ₹ 10 each on which he has paid ₹ 1 and ₹ 2 per share on application and allotment respectively.
C holds 300 shares of ₹ 10 each and has paid ₹ 1 on application, ₹ 2 on allotment and ₹ 3 on first call. They all fail to pay their arrears and the second call of ₹ 2 per share . Shares are forfeited and subsequently reissued @ ₹ 11 per share as fully paid-up.
journalise the above.
Solution-:
| In the Books of ……. Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Forfeiture of Shares
Shares of A
Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls-In-Arrears A/c
(100 shares of Rs 10 each, Rs 8 called-up, held by A forfeited for the non-payment of Rs 7 per share) |
|
800 |
100
700 |
|
Shares of B
Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(200 shares of Rs 10 each, Rs 8 called-up, held by B forfeited for non-payment of Rs 5 per share) |
|
1,600 |
600
1,000 |
|
Shares of C
Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(300 shares of Rs 10 each, Rs 8 called-up held by C forfeited for the non-payment of Rs 2 per share) |
|
2,400 |
1,800
600 |
|
Re-issue of shares
Bank A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(600 shares of Rs 10 each re-issued at Rs 11 per share fully paid-up) |
|
6,600 |
6,000
600 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Share Forfeiture transferred to Capital Reserve) |
|
2,500 |
2,500 |
Working Note:
| Share Forfeiture of 100 shares held by A |
₹ 100 |
| Share Forfeiture of 200 shares held by B |
₹ 600 |
| Share Forfeiture of 300 shares held by C |
₹ 1,800 |
| Total Share Forfeiture credit (at the time of cancellation of shares) |
₹ 2,500 |
| Calculation of Capital Reserve |
| Total Share Forfeiture (at the time of cancellation of shares) |
₹ 2,500 |
| Less: Total Share Forfeiture (at the time of re-issue of shares) |
Nil |
| Capital Reserve |
₹ 2,500 |
Question 58: Software Ltd. company with registered capital of ₹ 5,00,000 in shares of ₹ 10 each issued 20,000 of such shares payable ₹ 2 on application, ₹ 4 on allotment, ₹ 2 on first call ₹ 2 on final call. All the money payable on allotment was duly received but on the first call being made, one shareholder paid the entire balance on his holding of 300 shares and five shareholders with a total holding of 1,000 shares failed to pay their dues on the first call. These shares were forfeited for non-payment of first call money. Final call was made and all the money due was received. Later on, forfeited shares were reissued @ ₹ 6 per share as fully paid-up.
Record the above in the company’s Journal and prepare the Balance Sheet.
Solution-:
| In the Books of Software Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Share Application A/c
(Share application money received for 20,000 shares at ₹ 2 each) |
|
40,000 |
40,000 |
|
Share Application A/c Dr.
To Share Capital A/c
(Share application money of 20,000 shares at ₹ 2 each transferred to Share Capital) |
|
40,000 |
40,000 |
|
Share Allotment A/c Dr.
To Share Capital A/c
(Share allotment due on 20,000 shares at ₹ 4 each) |
|
80,000 |
80,000 |
|
Bank A/c Dr.
To Share Allotment A/c
(Share allotment money received) |
|
80,000 |
80,000 |
|
Share First Call A/c Dr.
To Share Capital A/c
(Share first call due on 20,000 shares at ₹ 2 each) |
|
40,000 |
40,000 |
|
Bank A/c Dr.
Call-in-Arrears A/c (1,000×2) Dr.
To Share First Call A/c
To Calls-in-Advance (300×2)
(Share first call of ₹ 2 per share received on 19,000 shares along with calls-in-advance of 300 shares at ₹ 2 each and holders of 1,000 shares failed to pay the first call) |
|
38,600
2,000 |
40,000
600 |
|
Share Capital A/c Dr.
To Share Forfeiture A/c (1,000×6)
To Calls-In-Arrears A/c
(1,000 shares of ₹ 10 each on which ₹ 8 had called, forfeited for non-payment of first call ₹ 2 per share) |
|
8,000 |
6,000
2,000 |
|
Share Final Call A/c Dr.
To Share Capital A/c
(Share final call due on 19,000 shares at ₹ 2 each) |
|
38,000 |
38,000 |
|
Bank A/c Dr.
Calls-In-Advance A/c Dr.
To Share Final Call A/c
(Share final call received from 18,700 shares and calls-in-advance of 300 shares adjusted) |
|
37,400
600 |
38,000 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(1,000 shares, re-issued at ₹ 6 per share as fully paid-up) |
|
6,000
4,000 |
10,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance of Share Forfeiture Account after re-issue transferred to Capital Reserve) |
|
2,000 |
2,000 |
| Software Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
(b) Reserve & Surplus
2. Non-Current Liabilities
3. Current Liabilities |
1
2 |
2,00,000
2,000 |
| Total |
|
2,02,000 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
3 |
2,02,000 |
| Total |
|
2,02,000 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
50,000 shares of Rs 10 each
Issued Share Capital
20,000 shares of Rs 10 each
Subscribed, Called-up and Paid-up Share Capital
20,000 shares of Rs 10 each |
5,00,000
2,00,000
2,00,000 |
| 2. |
Reserves and Surplus
Capital Reserve |
2,000 |
| 3. |
Cash and Cash Equivalents
Cash at Bank |
2,02,000 |
Working Notes:
| Share Forfeiture Credit (at the time of forfeiture of shares) |
6,000 |
| Less: Share Forfeiture Debit (at the time of re-issue shares) |
4.000 |
| Balance in Share Forfeiture Account after re-issue of shares |
2,000 |
|
| Capital Reserve = Balance in Share Forfeiture Account of re-issued shares = Rs 2,000 |
Question 60: Slow & Steady Ltd. invited applications for 10,000 Equity Shares of ₹ 10 each for public subscription. The amount of these shares was payable as:
On application ₹ 1 per share, on allotment ₹ 2 per share, on first call ₹ 3 per share and on second and final call ₹ 4 per share.
All sums payable on application, allotment and calls were duly received with the following exceptions:
(i) A, who held 200 shares, failed to pay the money on allotments and calls.
(ii) B, to whom 150 shares were allotted, failed to pay the money on first call and final call.
(iii) C, who held 50 shares, did not pay the amount of second and final call.
The shares of A, B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%.
Pass necessary Journal entries to record these transactions in the books of X Ltd.
Solution-:
| In the Books of Slow & Steady Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Equity Share Application A/c
(Share application received for 10,000 shares at ₹ 1 each) |
|
10,000 |
10,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c
(Share application money transferred to Share Capital) |
|
10,000 |
10,000 |
|
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
(Share allotment due on 10,000 shares at ₹ 2 each) |
|
20,000 |
20,000 |
|
Bank A/c Dr.
Calls-In-Arrears A/c Dr.
To Equity Share Allotment A/c
(Share allotment of ₹ 2 per share received on 9,800 shares and holder of 200 failed to pay to it) |
|
19,600
400 |
20,000 |
|
Equity Share First Call A/c Dr.
To Equity Share Capital
(Share first call due on 10,000 shares at ₹ 3 each) |
|
30,000 |
30,000 |
|
Bank A/c Dr.
Calls-In-Arrears A/c Dr.
To Equity Shares First Call A/c
(Share first call received on 9,650 shares and holders of 350 shares failed to pay it) |
|
28,950
1,050 |
30,000 |
|
Equity Share Final Call A/c Dr.
To Equity Share Capital A/c
(Share final call due on 10,000 shares at ₹ 4 each) |
|
40,000 |
40,000 |
|
Bank A/c Dr.
Calls-In-Arrears A/c Dr.
To Equity Share Final Call A/c
(Holders of 9,600 shares paid final call and holders of 400 shares failed to pay it) |
|
38,400
1,600 |
40,000 |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c (200 × 1)
To Calls-In-Arrears A/c (200 × 9)
(200 shares held by A on which application money ₹ 1 was received, forfeited) |
|
2,000 |
200
1,800 |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c (150 × 3)
To Calls-In-Arrears A/c (150 × 7)
(150 shares of ₹ 10 each held by B forfeited for the non-payment of two calls ₹ each) |
|
1,500 |
450
1,050 |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c (50 × 6)
To Calls-in-Arrears A/c (50 × 4)
(50 shares of ₹ 10 each held by C forfeited for the non-payment of final call ₹ 4 each) |
|
500 |
300
200 |
|
Bank A/c (400 × 9.5) Dr.
Share Forfeiture A/c (400 × .5) Dr.
To Equity Share Capital A/c
(400 shares of ₹ 10 each re-issued at ₹ 9.5 per share as fully paid-up) |
|
3,800
200 |
4,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture Account after re-issue transferred to Capital Reserve) |
|
750 |
750 |
Working Note:
| Share Forfeiture of 100 shares held by A |
₹ 200 |
| Share Forfeiture of 200 shares held by B |
₹ 450 |
| Share Forfeiture of 300 shares held by C |
₹ 300 |
| Total Share Forfeiture credit (at the time of cancellation of shares) |
₹ 950 |
|
| Calculation of Capital Reserve
Total Share Forfeiture (at the time of cancellation of shares) = ₹ 950
Less: Total Share Forfeiture (at the time of re-issue of shares) = ₹ (200)
Capital Reserve = ₹ 750 |
Forfeiture and Reissue of Shares which were Issued at Premium
Question 61: A share of ₹ 100 issued at a premium of ₹ 10 on which ₹ 80 (including premium) was called and ₹ 60 (including premium) was paid, has been forfeited. This share was afterwards reissued as fully paid-up for ₹ 70 . Give Journal entries to record the above.”
Solution-:
| In the Books of …….. Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c (Rs 80 – 10 premium) Dr.
To Share Forfeiture (Rs 60 – 10 premium)
To Calls-In-Arrears A/c
(A share of Rs 100 on which Rs 70 called excluding the amount of securities premium Rs 10, forfeited for non-payment of Rs 20) |
|
70 |
50
20 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(A share of Rs 100 re-issued at Rs 70 as fully paid-up) |
|
70
30 |
100 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture after re-issue transferred to Capital Reserve) |
|
20 |
20 |
Question 62: Pass journal entries in the following cases:
M Ltd forfeited 200 Equity Shares of ₹10 each , issued at a premium of ₹ 5 per share , held by Ram for non-payment of the final call of ₹ 3 per share . Of these , 100 shares were reissued to Vishu at a discount of ₹ 4 per share .
Solution-:
| In the Books of M Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c (2,000 × Rs 7)
To Calls-in-Arrears A/c
(2,000 shares of Rs 10 each forfeited for the non-payment of Rs 3 per share) |
|
20,000 |
14,000
6,000 |
|
Bank A/c Dr.
Share Forfeiture A/c (100 × Rs 4) Dr.
To Equity Share Capital A/c
(100 shares of Rs 10 each reissued at Rs 6 per share as fully paid-up) |
|
600
400 |
1,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture of 100 re-issued shares transferred to Capital Reserve ) |
|
300 |
300 |
Working Note-
| Share Forfeiture of re-issued shares |
| Share Forfeiture |
Cr . Rs 7 per hare |
| Share Forfeiture |
Dr. Rs 4 per share |
| Balance in share forfeiture after re-issue |
Cr. Rs. 3 per share |
| Capital Reserve = Balance in Share Forfeiture after re-issue × No. of shares re-issued
= Rs. 3 × 100 shares
= Rs. 300 |
Question 63: VT Ltd forfeited 200 shares of ₹ 10 each , issued at a premium of ₹ 5 per share , held by Mohan for non-payment of the final call of ₹ 3 per share . 100 out of these shares were reissued to Narendra at a discount of ₹ 4 per share . Journalise.
Solution-:
| In the Books of VT Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c (200 × Rs 10) Dr.
To Share Forfeiture A/c (200 × Rs 7)
To Calls-in-Arrears A/c
(200 shares of Rs 10 each forfeited for non-payment of Rs 3 each) |
|
2,000 |
1,400
600 |
|
Bank A/c Dr.
Share Forfeiture A/c (100 × Rs 4) Dr.
To Share Capital A/c
(100 shares of Rs 10 each re-issued at Rs 6 per share fully paid-up) |
|
600
400 |
1,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in share forfeiture of 100 shares transferred to capital reserve) |
|
300 |
300 |
Working Notes:
| Share Forfeiture of re-issued shares |
| Share Forfeiture Cr. |
Rs. 7 per share |
| Share Forfeiture Dr. |
Rs. 4 per share |
| Balance in Share Forfeiture after re-issue |
Rs. 3 per share |
|
| Capital Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares re-issued
= Rs. 3 × 100
= Rs 300 |
Question 64: The Directors of a company forfeited 300 shares of ₹ 10 each issued at a premium of ₹ 3 per share , for the non-payment of the first call money of ₹ 2 per share . The final call of ₹ 2 per share has not been made. Half the forfeited shares were reissued at ₹ 1,500 as fully paid-up. Record the journal entries for the forfeiture and reissue of shares.
Solution-:
| In the Books of …….. Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c (300 × 8) Dr.
To Share Forfeiture A/c (300 × 6)
To Calls-In-Arrears (300 × 2)
(300 shares of Rs 10 each on which Rs 8 had called, forfeited for non-payment Rs 2 per share) |
|
2,400 |
1,800
600 |
|
Bank A/c Dr.
To Share Capital A/c
(150 shares of Rs 10 each re-issued for the sum of Rs 1,500) |
|
1,500 |
1,500 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture Account of 150 re-issued shares, transferred to Capital Reserve) |
|
900 |
900 |
Working Notes
| Share Forfeiture of Re-issued Shares |
| Share Forfeiture (at the time of forfeiture) |
Cr. ₹ 6 per share |
| Less: Share Forfeiture (at the time of re-issue) |
Dr. NIL |
| Balance in Share Forfeiture after re-issue |
Cr. ₹ 6 per share |
|
| Capital Reserve = Balance in Share Forfeiture after reissue (per share) × Number of Shares Reissued
= Rs 6 × 150
= Rs 900 |
Question 65: JCV Ltd., forfeited 200 shares of ₹ 10 each issued at a premium of ₹ 2 per share for the non-payment of allotment money of ₹ 3 per share (including premium). The first and final call of ₹ 4 per share has not been made as yet . 50% of the forfeited shares were reissued at ₹ 8 per share as fully paid-up . Pass necessary Journal entries for the forfeiture and reissue of shares.
Solution-:
Application
|
₹ 5
|
Allotment
|
₹ 3 (1+2)
|
First and Final Call
|
₹ 4
|
|
12 (10+2)
|
Called-up = Application + Allotment
= Rs 5 + 3 (including premium Rs 2)
|
| In the Books of JCV Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c (200×6) Dr.
Securities Premium A/c (200×2) Dr.
To Share Forfeiture A/c (200×5)
To Calls-in-Arrears A/c (200×3)
(200 shares of Rs 10 each on which Rs 8 had called (including Rs 2 premium), forfeited for the non-payment of allotment Rs 3 (including Rs 2 premium) |
|
1,200
400 |
1,000
600 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(100 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up) |
|
800
200 |
1,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve
(Amount of share forfeiture of 100 re-issued shares transferred to Capital Reserve) |
|
300 |
300 |
Working Note-:
| Share Forfeiture of Re-issued Shares |
| Share Forfeiture (at the time of forfeiture) |
Cr. ₹ 5 per share |
| Share Forfeiture (at the time of re-issue) |
Dr. ₹ 2 per share |
| Balance in Share Forfeiture (after re-issue) |
Cr. ₹ 3 per share |
|
| Capital Reserve = Amount of share forfeiture
= Total shares forfeited × Shares reissued – Loss on reissue of forfeited shares
= 1000 / 200 × 100 – 100 × 2 = 500 – 200 = 300 |
Question 66: Pass necessary journal entries in the books of the company for the following transactions:
Vishesh Ltd. forfeited 1,000 Equity Shares of ₹ 10 each issued at a premium of ₹ 2 per share for non-payment of allotment money of ₹ 5 per share including premium. The final call of ₹ 2 per share was not yet called on these shares. Of the forfeited shares 800 shares were reissued at ₹ 12 per share as fully paid-up.
The remaining shares were reissued at ₹ 11 per share fully paid-up.
Solution-:
| In the Books of Vishesh Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Equity Share Capital A/c (8×1,000) Dr.
Securities Premium A/c (2×1,000) Dr.
To Share Forfeiture A/c
To Calls-in-Arrears
(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) |
|
8,000
2,000 |
5,000
5,000 |
|
Bank A/c (12×800) Dr.
To Share Capital A/c
To Securities Premium A/c
(800 shares reissued at Rs 12 fully paid up) |
|
9,600 |
8,000
1,600 |
|
Bank A/c (11×200) Dr.
To Share Capital A/c
To Securities Premium A/c
(200 shares reissued at Rs 11 fully paid up) |
|
2,200 |
2,000
200 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Profit on reissue transferred to capital reserve) |
|
5,000 |
5,000 |
Question 67: 150 shares of ₹ 10 each issued at a premium of ₹ 4 per share payable with allotment were forfeited for non-payment of allotment money of ₹ 8 per share including premium. The first and final call of ₹ 4 per share was not made. The forfeited shares were reissued at ₹ 15 per share fully paid-up.
Pass Journal entries in the books of X Ltd. for the above.
Solution-:
| In the Books……… Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Allotment A/c
To Share Forfeiture A/c
(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) |
|
900
600 |
1,200
300 |
|
Bank A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(150 shares of Rs 10 each reissued for Rs 15 per share fully paid–up) |
|
2,250 |
1,500
750 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance of Share Forfeiture Account transferred to Capital Reserve Account) |
|
300 |
300 |
Question 68: Commence Publications Ltd. issued 50,000 Equity Shares of ₹ 10 each at a premium of 10% payable as under:
On application
|
₹ 2,
|
On first call
|
₹ 2
|
On allotment
|
₹ 5
|
On final call
|
₹ 2
|
The calls were made by the company and all the money was duly received except the allotment and call money on 500 shares. These shares were, therefore, forfeited and later reissued @ ₹ 9 per share as fully paid-up.
Pass necessary journal entries to record the above transactions.
Solution-:
Application
|
₹ 2
|
Allotment
|
₹ 5 (4+1)
|
First and
|
₹ 2
|
Final Call
|
₹ 2
|
|
11 (10+1) called-up
|
| In the Books Commence Publications Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Equity Share Application A/c
(Share application received for 50,000 shares at Rs 2 each) |
|
1,00,000 |
1,00,000 |
|
Equity Share Application A/c Dr.
To Equity Share capital A/c
(Share application money transferred to Share Capital) |
|
1,00,000 |
1,00,000 |
|
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(Share allotment due on 50,000 shares at Rs 5 each including Re1 premium) |
|
2,50,000 |
2,00,000
50,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Equity Share Allotment
(Share allotment at Rs 5 each, received on 49,500 shares and holders of 500 shares failed to pay it) |
|
2,47,500
2,500 |
2,50,000 |
|
Equity Share First Calls A/c Dr.
To Equity Share capital
(First call due on 50,000 shares at Rs 2 each) |
|
1,00,000 |
1,00,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Equity Share first call A/c
(First call received on 49,500 shares and 500 shares failed to pay it) |
|
99,000
1,000 |
1,00,000 |
|
Equity Shares capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture
To Calls-in-Arrears A/c
(500 shares forfeited for the non-payment of Rs 7 including Re 1 premium) |
|
4,000
500 |
1,000
3,500 |
|
Equity Share Final Call A/c Dr.
To Equity Share Capital A/C
(Share final call due 49,500 share at Rs 2 each) |
|
99,000 |
99,000 |
|
Bank A/c Dr.
To Equity Share Final Call A/c
(Share final call money received) |
|
99,000 |
99,000 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(500 shares of Rs10 each reissued for Rs 9 per share as fully paid-up) |
|
4,500
500 |
5,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance of Share Forfeiture after re-issue transferred to Capital Reserve) |
|
500 |
500 |
Working Note:
| Share Forfeiture Credit |
1,000 |
| Less: Share Forfeiture Debit |
500 |
| Balance in Share Forfeiture (after re-issue) |
500 |
| Capital Reserve = Balance in Share Forfeiture (after re-issue) = Rs 500 |
Question 69: Gaurav applied for 5,000 shares of ₹ 10 each at a premium of 2.50 per share. But he was allotted only 2,500 shares on pro rata basis . After having paid ₹ 3 per share on application, he did not pay allotment money of ₹ 4.50 per share (including premium) and on his subsequent failure to pay the first call of ₹ 2 per share, his shares were forfeited. These shares were reissued at the rate of ₹ 8 per share credited as fully paid .
Pass journal entries to record the forfeiture and reissue of shares.
Solution-:
| In the Books …………..Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Equity Share Capital A/c (2,500×7) Dr.
Security Premium Reserve A/c Dr.
To Equity Share Allotment A/c
To Equity Share First Call A/c (2,500×2)
To Share Forfeited A/c
( 2,500 shares forfeited) |
|
17,500
3,750 |
3,750
5,000
12,500 |
|
Bank A/c (2,500×8) Dr.
Share Forfeited A/c (2,500×2) Dr.
To Equity Share Capital A/c (2,500×10)
(Share reissued @Rs 8 per share fully paid-up) |
|
20,000
5,000 |
25,000 |
|
Share Forfeited A/c (12,500 – 5,000) Dr.
To Capital Reserve A/c
( Profit on reissue transferred to Capital Reserve) |
|
7,500 |
7,500 |
Working Notes:
| Calculation of Amount unpaid on Allotment |
| Amount received on application (5,000×3) |
15,000 |
| Less: Amount adjusted on application (2,500×3) |
7,500 |
| Excess amount received on application |
7,500 |
| Amount due on allotment (2,500×4.5) |
11,250 |
| Amount unpaid on allotment |
3,750 (11,250-7,500) |
| Note:
Rs 7,500 received on application will be transferred to allotment, but first of all we have to transfer such amount to Capital A/c and rest would be transferred to Securities Premium A/c. Capital on allotment is Rs 5,000 (2,500×2) that is fully received and balance amount of advance Rs 2,500 will be transferred to Securities Premium A/c. So, amount of premium unpaid is Rs 3,750 (2,500×2.5 –2,500). |
Question 70: ‘Telecom Ltd.’ issued 20,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share, payable as: ₹ 7 (including premium) on application, ₹ 5 on allotment and the balance after three months of allotment. A shareholder to whom 200 shares were allotted failed to pay the allotment and call money and his shares were forfeited. 160 of the forfeited shares were reissued for ₹ 1,600.
Give necessary entries in company’s Journal and the Balance Sheet.
Solution-:
| In the Books Telecom Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Equity Share Application A/c
(Share application money received for 20,000 shares at Rs 7 each) |
|
1,40,000 |
1,40,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(Share application money of 20,000 shares transferred Share Capital at Rs25 per share and Securities Premium at Rs 5 per share) |
|
1,40,000 |
40,000
1,00,000 |
|
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
(Share allotment due on 20,000 shares at Rs 5 each) |
|
1,00,000 |
1,00,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Equity Share Allotment A/c
(Share allotment received on 19,800 shares and a holder of 200 shares failed to pay it) |
|
99,000
1,000 |
1,00,000 |
|
Equity Share First and Final call A/c Dr.
To Equity Share Capital A/c
(First and final call due on 20,000 shares at Rs 3 each) |
|
60,000 |
60,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Equity Share First and Final Call A/c
(First and final call received on 19,800 shares and a holder of 200 shares failed to pay it) |
|
59,400
600 |
60,000 |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c (Rs 2 × 200 Shares)
To Calls-in-Arrears A/c
(200 shares of Rs 10 each forfeited for the non-payment amount due Rs 8 per share) |
|
2,000 |
400
1,600 |
|
Bank A/c Dr.
To Equity Share Capital A/c
(160 shares of Rs 10 each re-issued for the sum of Rs 1,600) |
|
1,600 |
1,600 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture of 160 re-issued shares transferred to Capital Reserve) |
|
320 |
320 |
| Telecom Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
(b) Reserve & Surplus
2. Non-Current Liabilities
3. Current Liabilities |
1
2 |
1,99,680
1,00,320 |
| Total |
|
3,00,000 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
3 |
3,00,000 |
| Total |
|
3,00,000 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
…… Equity Shares of Rs 10 each
Issued Share Capital
20,000 Equity Shares of Rs 10 each
Subscribed, Called-up and Paid-up Share Capital
19,960 Equity Shares of Rs 10 each 1,99,600
Add: Shares Forfeited (40 shares × Rs 2) 80 |
2,00,000
1,99,680 |
| 2. |
Reserves and Surplus
Securities Premium 1,00,000
Capital Reserve 320 |
1,00,320 |
| 3. |
Cash and Cash Equivalents
Cash at Bank |
3,00,000 |
Working Notes:
| 1. Share Forfeiture of Re-issued Shares |
| Share Forfeiture (at the time of forfeiture after deducting premium) |
₹ 320 |
| Less: Share Forfeiture (at the time of re-issue) |
Nil |
| Balance in Share Forfeiture after re-issue |
₹ 320 |
|
| Capital Reserve = Balance in Share Forfeiture after reissue (per share) × Number of Shares Re-issued = Rs 2 × 160 = Rs 320 |
| 2. Calculation of balance remaining in Share Forfeiture Account |
| Share Forfeiture (at the time of forfeiture of 200 shares) |
₹ 400 |
| Less: Share Forfeiture (at the time re-issue of 160 shares) |
₹ (320) |
| Balance in Share Forfeiture Account (for 40 shares which are not re-issued) |
₹ 80 |
Question 71: Kamal Ltd. was formed on 1st April, 2010 with an authorised capital of ₹ 2,00,000 , divided into 2,000 Equity Shares of ₹ 100 each. 1,000 shares were issued as fully paid to the vendors of building for payment of the purchase consideration. The remaining 1,000 shares were offered or public subscription at a premium of ₹ 5 per share payable as:
On application
|
₹ 10 per share,
|
On allotment
|
₹ 25 per share(including premium)
|
On first call
|
₹ 40 per share
|
On final call
|
₹ 30 per share.
|
Applications were received for 900 shares which were duly allotted and the allotment money was received in full . At the time of the first call, a shareholder who held 100 shares failed to pay the first call money and his shares were forfeited. These shares were reissued @ ₹ 60 per share , ₹ 70 per share paid-up.
Final call has not been made.
You are required to
(i) give necessary journal entries to record the above transactions and
(ii) show how share capital would appear in the Balance Sheet of the company.
Solution-:
| In the Books Kamal Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Building A/c Dr.
To Vendor A/c
(Building purchased from the vendor) |
|
1,00,000 |
1,00,000 |
|
Vendor A/c Dr.
To Equity Share Capital A/c
(1,000 equity shares of Rs 100 each issued to the vendor of building) |
|
1,00,000 |
1,00,000 |
|
Bank A/c Dr.
To Equity Share Application A/c
(Share application money received for 900 shares at Rs 10 each) |
|
9,000 |
9,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital
(Share application money of 900 shares at Rs 10 each transferred to Share Capital) |
|
9,000 |
9,000 |
|
Equity Share Allotment A/c Dr.
To Securities Premium
To Equity Share Capital A/c
(Share allotment due on 900 shares at Rs 25 each including Rs 5 premium) |
|
22,500 |
4,500
18,000 |
|
Bank A/c Dr.
To Equity Share Allotment A/c
(Share allotment money received on 900 shares at Rs 25 each) |
|
22,500 |
22,500 |
|
Equity Share First Call A/c Dr.
To Equity Share Capital A/c
(First call due on 900 shares at Rs 40 each) |
|
36,000 |
36,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Equity Share First-call A/c
(First call received on 800 shares and a holder of 100 shares failed to pay it) |
|
32,000
4,000 |
36,000 |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(100 shares of Rs 100 each, Rs 70 called-up forfeited for the non-payment of Rs 40) |
|
7,000 |
3,000
4,000 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(100 shares of Rs 100 each, re-issued at Rs 60 per share as Rs 70 paid-up) |
|
6,000
1,000 |
7,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture the Account after re-issue transferred to Capital Reserve) |
|
2,000 |
2,000 |
| Kamal Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
(b) Reserve & Surplus
2. Non-Current Liabilities
3. Current Liabilities |
1
2 |
1,63,000
6,500 |
| Total |
|
1,69,500 |
| (ii). ASSETS
1. Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets
2. Current Assets
(a) Cash and Cash Equivalents |
3
4 |
1,00,000
69,500 |
| Total |
|
1,69,500 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
2,000 Equity Shares of Rs 100 each
Issued Share Capital
2,000 Equity Shares of Rs 100 each
Subscribed, Called-up and Paid-up Share Capital
1,000 Equity Shares of Rs 100 each(for consideration other than cash) 1,00,000
900 Equity Shares of Rs 100 each, Rs 70 Called-up 63,000 |
2,00,000
2,00,000
1,63,000 |
| 2. |
Reserves and Surplus
Securities Premium 4,500
Capital Reserve 2,000 |
6,500 |
|
Fixed Assets
Tangible Assets |
1,00,000 |
| 3. |
Cash and Cash Equivalents
Cash at Bank |
69,500 |
Working Notes:
| Share Forfeiture (at the time of forfeiture) |
3,000 |
| Less: Share Forfeiture (at the time of re-issue) |
1,000 |
| Balance in Share Forfeiture (after re-issue) |
2,000 |
| Capital Reserve = Balance in Share Forfeiture (after re-issue) = Rs 2,000 |
Question 73: Midee Ltd. invited applications for issuing 27,000 shares of ₹ 100 each payable as follows:
₹ 50—per share on application;
₹ 10—per share on allotment; and
Balance—on First and Final call.
Applications were received for 40,000 shares. Full allotment was made to the applicants of 7,000 shares. The remaining applicants were allotted 20,000 shares on pro rata basis. Excess money received on applications was adjusted towards allotment and call.
Asha, holding 600 shares was belonged to the category of applicants to whom full allotment was made ,paid the call money at the time of allotment . Ankur, who belonged to the category of applicants to whom shares were allotted on pro rata basis did not pay anything after application on his 200 shares . Ankur’s shares were forfeited after the First and Final call. These shares were later reissued at ₹ 105 per share as fully paid-up.
Pass necessary journal entries in the books of Midee Ltd . for the above transactions, by opening Calls-in-Arrears and Calls-in-Advance Accounts wherever necessary.
Solution-:
| In the Books Midee Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c (40,000 × 50) Dr.
To Equity Share Application A/c
(Application money received) |
|
20,00,000 |
20,00,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c(27,000 × 50)
To Calls in Advance A/c(13,000 × 50)
(Application money transferred) |
|
20,00,000 |
13,50,000
6,50,000 |
|
Equity Share Allotment A/c (27,000 × 10) Dr.
To Equity Share Capital A/c
(Allotment money due) |
|
2,70,000 |
2,70,000 |
|
Bank A/c Dr.
Calls in Advance A/c Dr.
To Equity Share Allotment A/c
To Calls–in–Advance A/c
(Allotment money received) |
|
94,000
2,00,000 |
2,70,000
24,000 |
|
Equity Share First Call A/c (27,000 × 40) Dr.
To Equity Share Capital A/c
(Call money due) |
|
10,80,000 |
10,80,000 |
|
Bank A/c Dr.
Calls–in–Advance A/c Dr.
Calls–in–Arrears A/c Dr.
To Equity Share First Call A/c
(Call money received) |
|
6,26,500
4,50,000
3,500 |
10,80,000 |
|
Equity Share Capital A/c Dr.
To Equity Share First Call A/c
To Equity Share Forfeiture A/c
(200 shares forfeited) |
|
20,000 |
3,500
16,500 |
|
Bank A/c (200 × 105) Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(Forfeited shares re–issued at Rs 105 per share) |
|
21,000 |
20,000
1,000 |
|
Equity Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Profit on re–issue transferred) |
|
16,500 |
16,500 |
Question 74: VXN Ltd. invited applications for issuing 50,000 equity shares of ₹ 10 each at a premium of ₹ 8 per share . The amount was payable as follows:
On Application
|
₹ 4 per share (Including ₹ 2 premium)
|
On Allotment
|
₹ 6 per share (Including ₹ 3 premium)
|
On First Call
|
₹ 5 per share (Including ₹ 1 premium)
|
On Second and Final Call
|
Balance Amount
|
The issue was fully subscribed . Gopal, a shareholder holding 200 shares, did not pay the allotment money and Madhav, a holder of 400 shares, paid his entire share money along with the allotment money. Gopal’s shares were immediately forfeited after allotment . Afterwards, the first call was made. Krishna, a holder of 100 shares , failed to pay the first call money and Girdhar, a holder of 300 shares, paid the second call money also along with the first call . Krishna’s shares were forfeited immediately after the first call. Second and final call was made afterwards and was duly received . All the forfeited shares were reissued at ₹ 9 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of the company.
Solution-:
| In the Books VXN Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c (50,000 × 4) Dr.
To Equity Share Application A/c
(Application money received on 50,000 shares) |
|
2,00,000 |
2,00,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c
To Securities Premium Reserve A/c
(Application money transferred to Share Capital) |
|
2,00,000 |
1,00,000
1,00,000 |
|
Equity Share Allotment A/c (50,000 × 6) Dr.
To Equity Share Capital A/c
To Securities Premium Reserve A/c
(Allotment money due on 50,000 shares) |
|
3,00,000 |
1,50,000
1,50,000 |
|
Bank A/c (49,800 × 6) + (400 × 8) Dr.
To Equity Share Allotment A/c (49,800 × 5)
To Calls–in–Advance A/c (400 × 8)
(Allotment money received) |
|
3,02,000 |
2,98,800
3,200 |
|
Equity Share Capital A/c (200 × 5) Dr.
Securities Premium Reserve A/c (200 × 3) Dr.
To Equity Share Allotment A/c (200 × 6)
To Equity Share Forfeiture A/c (200 × 2)
(200 shares forfeited for non–payment of allotment money including premium of Rs 3) |
|
1,000
600 |
1,200
400 |
|
Equity Share First Call A/c (49,800 × 5) Dr.
To Equity Share Capital A/c
To Securities Premium Reserve A/c
(Call money due on 49,800 shares) |
|
2,49,000 |
1,99,200
49,800 |
|
Bank A/c (49,700 × 5) − 2,000 + 900 Dr.
Calls–in–Advance A/c (400 × 5) Dr.
To Calls–in–Advance A/c (300 × 3)
To Equity Share First Call A/c
(Call money received) |
|
2,47,400
2,000 |
900
2,48,500 |
|
Equity Share Capital A/c (100 × 9) Dr.
Securities Premium Reserve A/c (100 × 1) Dr.
To Equity Share First Call A/c (100 × 5)
To Equity Share Forfeiture A/c (100 × 5)
(100 shares forfeited for non-payment of call money) |
|
900
100 |
500
500 |
|
Equity Share Second and Final Call A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(Call money due on 49,700 shares) |
|
1,49,100 |
49,700
99,400 |
|
Bank A/c Dr.
Calls-in-Advance A/c (1,200 + 900) Dr.
To Equity Share Second and Final Call A/c
(Call money received on shares) |
|
1,47,000
2,100 |
1,49,100 |
|
Bank A/c (300 × 9) Dr.
Equity Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(300 shares re–issued at Rs 9 per share) |
|
2,700
300 |
3,000 |
|
Equity Share Forfeiture A/c (400+500−300) Dr.
To Capital Reserve A/c
(Profit on re-issue transferred to Capital Reserve) |
|
600 |
600 |
Question 75: Sukanya Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each. The shares were issued at a premium of ₹ 20 per share. The amount was payable as follows:
On Application and Allotment
|
₹ 14 per share (including premium of ₹ 10),
|
On First Call
|
₹ 8 per share (including premium of ₹ 5)
|
On Final Call
|
₹ 8 per share (including premium of ₹ 5).
|
Applications for 96,000 shares were received. Rohit , a shareholder holding 7,000 shares, failed to pay both the calls and Namit , a holder of 5,000 shares , did not pay the final call.
Shares of Rohit and Namit were forfeited . Of the forfeited shares 8,000 shares including all the shares of Rohit were reissued to Reena at ₹ 8 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Sukanya Ltd.
Solution-:
| In the Books Sukanya Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c (96,000×14) Dr.
To Equity Share Application and
Allotment A/c
( Application money received) |
|
13,44,000 |
13,44,000 |
|
Equity Share Application and Allotment A/c Dr.
To Equity Share Capital A/c (96,000×4)
To Security Premium Reserve A/c (96,000×10)
(Application money adjusted to Share Capital) |
|
13,44,000 |
3,84,000
9,60,000 |
|
Equity Share First Call A/c (96,000×8) Dr.
To Equity Share Capital A/c (96,000×3)
To Security Premium Reserve A/c (96,000×5)
(First call money due) |
|
7,68,000 |
2,88,000
4,80,000 |
|
Bank A/c (7,68,000¬¬ – 56,000) Dr.
To Equity Share First Call A/c
(First call money received) |
|
7,12,000 |
7,12,000 |
|
Equity Share Second Call A/c (96,000×8) Dr.
To Equity Share Capital A/c (96,000×3)
To Security Premium Reserve A/c
(Second call money due) |
|
7,68,000 |
2,88,000
4,80,000 |
|
Bank A/c (7,68,000¬¬ – 56,000 – 40,000) Dr.
To Equity Share Second Call A/c
(Second call money received) |
|
6,72,000 |
6,72,000 |
|
Equity Share Capital A/c Dr.
Security Premium Reserve A/c Dr.
To Equity Share First Call A/c
To Equity Share Second Call A/c
To Shares Forfeited A/c
(Shares Forfeited) |
|
1,20,000
95,000 |
56,000
96,000
63,000 |
|
Bank A/c (8,000×8) Dr.
Shares Forfeited A/c (8,000×2) Dr.
To Equity Share Capital A/c
(Shares Reissued) |
|
64,000
16,000 |
80,000 |
|
Shares Forfeited A/c Dr.
To Capital Reserve A/c
(Profit on Reissue transferred to Capital Reserve A/c) |
|
19,000 |
19,000 |
Working Notes:
| WN1: Amount transferred to Capital Reserve |
| Amount forfeited on reissued shares of Rohit |
28,000 |
| Amount forfeited on reissued shares of Namit |
= Amount Forfeited ×Shares Re-issued Shares Forfeited =₹ 35,000 / 5,000×₹ 1,000 =₹ 7,000 |
| Total amount forfeited on reissued shares |
₹ 28,000 + ₹ 7,000 = ₹ 35,000 |
| Amount transferred to Capital Reserve |
₹ 35,000 – ₹ 16,000 = ₹ 19,000 |
| Capital Reserve = Balance in Share Forfeiture (after re-issue) = Rs 2,000 |
Forfeiture and Reissue of Shares which were Allotted on Pro rata
Question 76: Alfa Ltd. invited applications for issuing 75,000 equity shares of ₹ 10 each. The amount was payable as follows:
On application and allotment
|
₹ 4 per share
|
On first Call
|
₹ 3 per share
|
On second and final Call
|
balance
|
Applications for 1,00,000 shares were received. Shares were allotted to all the applicants on pro rata basis and excess money received with applications was transferred towards sums due on first call. Vibha who was allotted 750 shares failed to pay the first call . Her shares were immediately forfeited . Afterwards the second call was made. The amount due on second call was also received except on 1,000 shares applied by Monika . Her shares were also forfeited. All the forefited shares were reissued to Mohit for ₹9,000 as fully paid-up.
Pass necessary journal entries in the Books of Alfa Ltd . for the above transactions.
Solution-:
| In the Books Alfa Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Equity Share Application and
Allotment A/c
(Application money received on 1,00,000 shares) |
|
4,00,000 |
4,00,000 |
|
Equity Share Application and Allotment A/c Dr.
To Equity Share Capital A/c
To Equity Share First Call A/c
(Application money transferred to share capital account and excess money is adjusted in first call account) |
|
4,00,000 |
3,00,000
1,00,000 |
|
Equity Share First Call A/c Dr.
To Equity Share Capital A/c
(Amount due on first call) |
|
2,25,000 |
2,25,000 |
|
Bank A/c (2,25,000 – 1,00,000 – 1,250) Dr.
To Equity Share First Call A/c
(Amount received on first call) |
|
1,23,750 |
1,23,750 |
|
Equity Share Capital A/c Dr.
To Equity Share Forfeiture A/c
To Equity Share First Call A/c
(Vibha’s shares were forfeited) |
|
5,250 |
4,000
1,250 |
|
Equity Share Second and Final Call A/c Dr.
To Equity Share Capital A/c
(Amount due on second and final call after forfeiting Vibha’s shares) |
|
2,22,750 |
2,22,750 |
|
Bank A/c (2,22,750 – 2,250) Dr.
To Equity Share Second and Final Call A/c
(Amount received on second and final call) |
|
2,20,500 |
2,20,500 |
|
Equity Share Capital A/c Dr.
To Equity Share Forfeiture A/c
To Equity Share Second and Final Call A/c
(Monika’s shares were forfeited) |
|
7,500 |
5,250
2,250 |
|
Bank A/c Dr.
Equity Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(Forfeited shares were reissued for Rs 9,000 as fully paid-up) |
|
9,000
6,000 |
15,000 |
|
Equity Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Excess amount on forfeiture is transferred to capital reserve) |
|
3,250 |
3,250 |
Question 77: Himalaya Company Limited issued for public subscription 1,20,000 equity shares of ₹ 10 each at a premium for ₹ 2 per share payable as under:
With Application
|
₹ 3 per share
|
On allotment (including premium)
|
₹ 5 per share
|
On First call
|
₹ 2 per share
|
On Second and Final call
|
₹ 2 per share
|
Applications were received for 1,60,000 shares . Allotment was made on pro rata basis . Excess money on application were adjusted against the amount due on allotment.
Rohan to whom 4,800 shares were allotted failed to pay for the two calls. These shares were subsequently forfeited after the second call was made . All the shares forfeited were reissued to Teena as fully paid at ₹ 7 per share.
Record journal entries ..
Solution-:
| In the Books Himalaya Company Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Share Application A/c
(Share Application money received for 1,60,000 shares @ Rs 3 per share) |
|
4,80,000 |
4,80,000 |
|
Share Application A/c Dr.
To Equity Share Capital A/c
To Share Allotment A/c
(Share Application for 1,20,000 shares @ Rs 3 per share transferred to Share Capital Account and remaining amount adjusted to Allotment) |
|
4,80,000 |
3,60,000
1,20,000 |
|
Share Allotment A/c Dr.
To Equity Share Capital A/c
To Securities Premium
(Share Allotment due on 1,20,000 shares @ Rs 5 per share including Rs 2 Securities Premium) |
|
6,00,000 |
3,60,000
2,40,000 |
|
Bank A/c Dr.
To Share Allotment A/c
(Share allotment for 1,20,000 shares @ Rs 5 per share received) |
|
4,80,000 |
4,80,000 |
|
Share First Call A/c Dr.
To Equity Share Capital A/c
(Share First Call due on 1,20,000 shares @ Rs 2 per share) |
|
2,40,000 |
2,40,000 |
|
Bank A/c Dr.
To Share First Call A/c
(Share First Call received on 1,15,200 shares @ Rs 2 per share and 4,800 shares failed to pay) |
|
2,30,400 |
2,30,400 |
|
Share Final Call A/c Dr.
To Equity Share Capital A/c
(Share Final call due on 1,20,000 shares @ Rs 2 per share) |
|
2,40,000 |
2,40,000 |
|
Bank A/c Dr.
To Share Final Call A/c
(Share Final Call received on 1,15,200 shares @ Rs 2 per share and 4,800 shares failed to pay) |
|
2,30,400 |
2,30,400 |
|
Equity Share Capital A/c (4,800×10) Dr.
To Share First Call A/c (4,800×2)
To Share Final Call A/c (4,800×2)
To Share Forfeiture A/c (4,800×6)
(4,800 shares forfeited for the non–payment of First Call and Final Call) |
|
48,000 |
9,600
9,600
28,800 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Equity Share Capital
(4,800 shares reissued @ Rs 7 per share, fully paid–up) |
|
33,600
14,400 |
48,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Share forfeiture balance of 4,800 shares transferred to Capital Reserve Account) |
|
14,400 |
14,400 |
Question 78: Amrit Ltd. issued 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as
₹ 3 on application,
₹ 4 on allotment (including premium) ,
₹ 2 on first call and
the remaining on second call.
Applications were received for 75,000 shares and pro rata allotment was made to all the applicants.
All moneys due were received except allotment and first call from Sonu who applied for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for ₹ 9,600. Final call was not made . Pass necessary Journal entries.
Solution-:
| In the Books Amrit Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Share Application A/c (75,000×3)
(Application money received) |
|
2,25,000 |
2,25,000 |
|
Share Application A/c Dr.
To Share Capital A/c (50,000×3)
To Share Allotment A/c
(Application money adjusted on allotment) |
|
2,25,000 |
1,50,000
75,000 |
|
Share Allotment A/c (50,000×4) Dr.
To Share Capital A/c
To Securities Premium A/c
(Allotment money due on 50,000 shares) |
|
2,00,000 |
1,00,000
1,00,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Share Allotment A/c
(Allotment money received) |
|
1,23,000
2,000 |
1,25,000 |
|
Share First Call A/c (50,000×2) Dr.
To Share Capital A/c
(First call money due on 50,000 shares) |
|
1,00,000 |
1,00,000 |
|
Bank A/c Dr.
Calls-in-Arrears A/c (800×2) Dr.
To Share First Call A/c
(Call money received) |
|
98,400
1,600 |
1,00,000 |
|
Equity Share Capital A/c (800×7) Dr.
Securities Premium A/c (800×2) Dr.
To Calls-in-Arrears A/c
To Share Forfeiture A/c (1,200×3)
(800 shares forfeited for non-payment of allotment and call money) |
|
5,600
1,600 |
3,600
3,600 |
|
Bank A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Shares reissued at a premium) |
|
9,600 |
5,600
4,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Profit on reissue transferred to capital reserve) |
|
3,600 |
3,600 |
Question 79: Dogra Ltd. had an authorised capital of ₹ 1,00,00,000 divided into Equity Shares of ₹ 100 each. The company offered 84,000 shares to the public at premium.
The amount was payable as follow:
On Application
|
₹ 30 per share
|
On Allotment
|
₹ 40 per share(including premium),
|
On First and Final call
|
₹ 50 per share
|
|
|
Applications were received for 80,000 shares.
All sums were duly received except the following:
Lakhan, a holder of 200 shares did not pay allotment and call money.
Paras, a holder of 400 shares did not pay call money.
The company, forfeited the shares of Lakhan and Paras. Subsequently the forfeited shares were reissued for ₹ 80 per share as fully paid-up . Show the entries for the above transactions in the Cash Book and journal of the company.
Solution-:
| In the Books Dogra Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Equity Share Application A/c (80,000×30) Dr.
To Equity Share Capital A/c
(Application money transferred to share capital) |
|
24,00,000 |
24,00,000 |
|
Equity Share Allotment A/c (80,000×40) Dr.
To Equity Share Capital A/c
To Securities Premium Reserve A/c
(Allotment money due) |
|
32,00,000 |
16,00,000
16,00,000 |
|
Equity Share First and Final Call A/c Dr.
To Equity Share Capital A/c
(First call money due) |
|
40,00,000 |
40,00,000 |
|
Equity Share Capital A/c (600×100) Dr.
Securities Premium Reserve A/c (200×20) Dr.
To Equity Share Allotment A/c (200×40)
To Equity Share First and Final Call (600×50)
To Equity Share Forfeiture A/c (200×30 + 400×50)
(600 shares forfeited for non-payment of allotment and call money) |
|
60,000
4,000 |
8,000
30,000
26,000 |
|
Equity Share Forfeiture A/c (600×20) Dr.
To Equity Share Capital A/c
(600 shares reissued) |
|
12,000 |
12,000 |
|
Equity Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Profit on reissue transferred to capital reserve) |
|
14,000 |
14,000 |
| Cash Book
Dr. Cr. |
| Particulars |
Amt. (₹) |
Particulars |
Amt. (₹) |
| Equity Share Application A/c (80,000×30)
Equity Share Allotment A/c (79,800×40)
Equity Share First Call A/c (79,400×50)
Equity Share Capital A/c (600×80) |
24,00,000
31,92,000
39,70,000
48,000 |
Balance C/d |
96,10,000 |
|
96,10,000 |
|
96,10,000 |
Question 80: Jeevan Dhara Ltd. invited applications for issuing 1,20,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:
On application
|
₹ 2 per share
|
On allotment
|
₹ 5 per share(including premium),
|
On first and final call
|
Balance
|
Applications for 1,50,000 shares were received . Shares were allotted to all the applicants on pro rata basis. Excess money received on applications was adjusted towards sums due on allotment . All calls were made. Manu who had applied for 3,000 shares failed to pay the amount due on allotment and first and final call Madhur who was allotted 2,400 shares failed to pay the first and final call . Shares of both Manu and Madhur were forfeited . The forfeited shares were reissued at ₹ 9 per share as fully paid-up .
Pass necessary journal entries for the above transactions in the books of Jeevan Dhara Ltd.
Solution-:
| In the Books Jeevan Dhara Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Equity Share Application A/c
(Application money received on 1,50,000 shares) |
|
3,00,000 |
3,00,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c
To Equity Share Allotment A/c
(Amount of application transferred to Share Capital and excess money is adjusted towards allotment) |
|
3,00,000 |
2,40,000
60,000 |
|
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(Amount due on allotment) |
|
6,00,000 |
3,60,000
2,40,000 |
|
Bank A/c Dr.
To Equity Share Allotment A/c
(Amount received on share allotment) |
|
5,29,200 |
5,29,200 |
|
Equity Share First and Final Call A/c Dr.
To Equity Share Capital A/c
(Amount due on first and final call) |
|
6,00,000 |
6,00,000 |
|
Bank A/c Dr.
To Equity Share First and Final Call A/c
(Amount received on first and final call) |
|
5,76,000 |
5,76,000 |
|
Equity Share Capital A/c Dr.
Securities Premium A/c Dr.
To Equity Share Forfeiture A/c
To Equity Share Allotment A/c
To Equity Share First and Final Call A/c
(Shares of Manu and Madhur were forfeited) |
|
48,000
4,800 |
18,000
10,800
24,000 |
|
Bank A/c Dr.
Equity Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(Forfeited shares were reissued for Rs 9 as fully paid-up) |
|
43,200
4,800 |
48,000 |
|
Equity Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Excess amount on forfeiture is transferred to capital reserve) |
|
13,200 |
13,200 |
Question 81: JJK Ltd. invited applications for issuing 50,000 equity shares of ₹ 10 each at par. The amount was payable as follows:
On Application
|
₹ 2 per share
|
On Allotment
|
₹ 4 per share; and
|
On First and Final call
|
Balance Amount
|
The issue was oversubscribed three times. Applications for 30% shares were rejected and money refunded .Allotment was made to the remaining applicants as follows:
| Category |
No . of Shares Applied |
No. of Shares Allotted |
| (i) |
80,000 |
40,000 |
| (ii) |
25,000 |
10,000 |
Excess money paid by the applicants who were allotted shares was adjusted towards sums due on allotment .
Deepak, a shareholder belonging to Category I , who had applied for 1,000 shares ,failed to pay the allotment money. Raju, a shareholder holding 100 shares, also failed to pay the allotment money. Raju belonged to Category II. Shares of both Deepak and Raju were forfeited immediately after allotment . Afterwards, first and final call was made and was duly received . The forfeited shares of Deepak and Raju were reissued at ₹11 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of company.
Solution-:
| In the Books JJK Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c (1,50,000 × 2) Dr.
To Share Application A/c
(Application money received on 1,50,000 shares) |
|
3,00,000 |
3,00,000 |
|
Share Application A/c Dr.
To Share Capital A/c
To Share Allotment A/c
To Bank A/c
(Application money transferred to Share Capital) |
|
3,00,000 |
1,00,000
1,10,000
90,000 |
|
Share Allotment A/c (50,000 × 4) Dr.
To Share Capital A/c
(Allotment money due on 50,000 shares) |
|
2,00,000 |
2,00,000 |
|
Bank A/c Dr.
To Share Allotment A/c (WN2)
(Allotment money received) |
|
88,900 |
88,900 |
|
Share Capital A/c (600 × 6) Dr.
To Share Allotment A/c (1,000 + 100)
To Share Forfeiture A/c (2,000 + 500)
(600 shares forfeited for non–payment of allotment money) |
|
3,600 |
1,100
2,500 |
|
Share First and Final Call A/c Dr.
To Share Capital A/c
(Call money due on 49,400 shares) |
|
1,97,600 |
1,97,600 |
|
Bank A/c Dr.
To Share First and Final Call A/c
(Call money received) |
|
1,97,600 |
1,97,600 |
|
Bank A/c (600 × 11) Dr.
To Share Capital A/c
To Security Premium Reserve A/c
(600 shares re–issued at Rs 11 per share) |
|
6,600 |
6,000
600 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Profit on re–issue transferred to Capital Reserve) |
|
2,500 |
2,500 |
Workimg Note-:
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 |
| 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 |
– |
– |
– |
|
1,50,000 |
50,000 |
3,00,000 |
1,00,000 |
1,10,000 |
1,10,000 |
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
| Shares Allotted to Deepak |
=40,000 / 80,000 × 1,000 = 500Shares |
| Applied by Raju |
=25,000 / 10,000 × 100 = 250 |
|
|
|
|
| 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 |
Question 82: XYZ Ltd . is registered with an authorised capital of ₹ 2,00,000 divided into 2,000 shares of ₹ 100 each of which , 1,000 shares were offered for public subscription at a premium of ₹ 5 per share , payable as:
On application
|
₹ 10 per share,
|
On allotment
|
₹ 25 per share (including premium)
|
On first call
|
₹ 40 per share
|
On final call
|
₹ 30 per share
|
Applications were received for 1,800 shares, of which applications for 300 shares were rejected outright; the rest of the application were allotted 1,000 shares on pro rata basis. Excess application money was transferred to allotment.
All the money was duly received except from Sundar , holder of 100 shares, who failed to pay allotment and first call money. His shares were later forfeited and reissued to Shyam at ₹ 60 per share ₹ 70 paid-up. Final call has not been made.
Pass necessary Journal entries and prepare Cash Book in the books of XYZ Limited.
Solution-:
| In the Books XYZ Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Application A/c Dr.
To Share Capital A/c
To Share Allotment A/c
(Share application of 1,000 shares transferred to Share Capital, Rs 5,000 adjusted on allotment) |
|
15,000 |
10,000
5,000 |
|
Share Allotment A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Share allotment due on 1,000 shares at Rs 25 each including Rs 5 premium) |
|
25,000 |
20,000
5,000 |
|
Share First Call A/c Dr.
To Share Capital A/c
(First call due on 1,000 shares at Rs 40 each) |
|
40,000 |
40,000 |
|
Securities Premium A/c Dr.
Share Capital A/c Dr.
To Share Forfeiture A/c
To Share Allotment A/c
To Share First Call A/c
(100 shares of Rs 100 each Rs 70 called–up, forfeited for the non-payment of allotment and first call) |
|
500
7,000 |
1,500
2,000
4,000 |
|
Share Forfeiture A/c Dr.
To Share Capital A/c
(100 shares of Rs 100 each re-issued at Rs 60 per share, Rs 70 paid-up) |
|
1,000 |
1,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture after re-issue transferred to Capital Reserve) |
|
500 |
500 |
| Cash Book
Dr. Cr. |
| Particulars |
Amt. (₹) |
Particulars |
Amt. (₹) |
| Share Application
Share Allotment
Share First Call
Share Capital |
18,000
18,000
36,000
6,000 |
Share Application
Balance C/d |
3,000
75,000 |
|
78,000 |
|
78,000 |
Working Notes:
| Sunder |
| Money received on application 150 × Rs 10 |
1,500 |
| 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 |
|
20,000 |
| Less: Calls-in-Arrears by Sunder |
2,000 |
| Money received on allotment |
18,000 |
Question 83: A Ltd. invited applications for issuing 1,00,000 shares of ₹ 10 each at a premium of ₹ 1 per share. The amount was payable as follows:
On Application
|
3 per share;
|
On Allotment
|
3 per share (including premium);
|
On First Call
|
3 per share
|
On Second and Final Call
|
Balance amount
|
Applications for 1,60,000 shares were received. Allotment was made on the following basis:”
| (i) To applicants for 90,000 shares |
40,000 shares |
| (ii) To applicants for 50,000 shares |
40,000 shares |
| (iii) To applicants for 20,000 shares |
Full Shares |
Excess money paid on application is to be adjusted against the amount due on allotment and calls.
Rishabh, a shareholder, who applied for 1,500 shares and belonged to category (ii), did not pay allotment, first and second and final call money.
Another shareholder, Sudha, who applied for 1,800 shares and belonged to category (i), did not pay the first and second and final call money.
All the shares of Rishabh and Sudha were forfeited and were subsequently reissued at ₹ 7 per share fully paid.
Pass the necessary Journal entries in the books of A Ltd. Open Calls-in-Arrears Account and Calls-in-Advance Account wherever required.
Solution-:
| In the Books A Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c (1,60,000 × 3) Dr.
To Share Application A/c
(Being application money received on 1,60,000 shares) |
|
4,80,000 |
4,80,000 |
|
Share Application A/c Dr.
To Share Capital A/c (1,00,000 × 3)
To Call-in Advance A/c (4,80,000 – 3,00,000)
(Being application money adjusted on 1,00,000 shares and Excess treated as an advance) |
|
4,80,000 |
3,00,000
1,80,000 |
|
Share Allotment A/c (1,00,000 × 3) Dr.
To Share Capital A/c (1,00,000 × 2)
To Securities Premium Reserve A/c
(Being allotment money due) |
|
3,00,000 |
2,00,000
1,00,000 |
|
Bank A/c Dr.
Calls-in-Advance A/c (1,20,000 + 30,000) Dr.
Calls-in-Arrear A/c [(1,200 × 3) – 900] Dr.
To Share Allotment A/c
(Being allotment money received after adjusting the excess application money and non-payment on 1,200 shares) |
|
1,47,300
1,50,000
2,700 |
3,00,000 |
|
Share First Call A/c (1,00,000×3) Dr.
To Share Capital A/c
(Being first call money due) |
|
3,00,000 |
3,00,000 |
|
Bank A/c Dr.
Calls-in-Advance A/c (1,80,000 – 1,50,000)Dr.
Calls-in-Arrears A/c [3,600 + (2,400 – 600)]
To Share First Call A/c
(Being amount received on first call except on 2,000 shares) |
|
2,64,600
30,000
5,400 |
3,00,000 |
|
Share Second and Final Call A/c Dr.
To Share Capital A/c
(Being share second and final call money due) |
|
2,00,000 |
2,00,000 |
|
Bank A/c Dr.
Call-in-Arrears A/c (2,000 × 2) Dr.
To Share Second and Final Call A/c
(Being amount received on second and final call except on 2,000 shares) |
|
1,96,000
4,000 |
2,00,000 |
|
Share Capital A/c (2,000 × 10) Dr.
Securities Premium Reserve A/c (1,200 × 1)Dr.
To Share Forfeiture A/c
To Calls-in-Arrears A/c
(Being 2,000 shares forfeited for non-payment of amount due) |
|
20,000
1,200 |
9,100
12,100 |
|
Bank A/c (2,000 × 7) Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(Being 2000 shares reissued at ₹ 7 per share fully paid-up) |
|
14,000
6,000 |
20,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c (9,100 – 6,000)
(Being capital gain on reissued shares transferred) |
|
3,100 |
3,100 |
|
|
|
|
|
Working Notes:
| Categories |
Shares Applied |
Shares
Allotted |
Money received on Application @ ₹ 3 |
Money Transferred to Share Capital @ ₹ 3 |
Allotment due @ ₹ 3(including premium of ₹ 1) |
Excess on Application |
| I |
90,000 |
40,000 |
2,70,000 |
1,20,000 |
1,20,000 |
1,50,000 |
| II |
50,000 |
40,000 |
1,50,000 |
1,20,000 |
1,20,000 |
30,000 |
| III |
20,000 |
20,000 |
60,000 |
60,000 |
60,000 |
– |
| Particulars |
Shares Allotted |
Shares Applied |
Excess on Application
|
| Rishabh- Category (ii) |
(1,500×40,000/50,000) = 1,200 |
1,500 |
900 |
| Sudha- Category (i) |
(1,800×40,000/90,000) = 800 |
1,800 |
3,000 |
Question 84: Ruchi Ltd. issued for public subscription 40,000 Equity Shares of ₹ 10 each at a premium of ₹ 2 per share payable as:
On application
|
₹ 2 per share;
|
On allotment
|
₹ 5 per share (including premium),
|
On first call
|
₹ 2 per share
|
On second and final call
|
₹ 3 per share
|
Applications were received for 60,000 shares. Allotment was made on pro rata basis to the applicants for 48,000 shares, the remaining applications being refused. Money overpaid on application was utilised towards sums due on allotment. Ram to whom 1,600 shares were allotted failed to pay the allotment money and Shyam to whom 2,000 shares were allotted failed to pay the two calls. These shares were subsequently forfeited after the second and final call was made. All the forfeited shares were reissued as fully paid-up @ ₹ 8 per share.
Give necessary Journal entries for the above transactions.
Solution-:
| In the Books Ruchi Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Equity Share Application A/c
(Application money received for 60,000 shares at ₹ 2 each) |
|
1,20,000 |
1,20,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c
To Equity Share Allotment A/c
To Bank A/c
(Share application of 40,000 shares transferred to share capital, Rs 16,000 adjusted on allotment and remaining ₹ 24,000 refunded) |
|
1,20,000 |
80,000
16,000
24,000 |
|
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(Share allotment due on 40,000 shares at ₹ 5 each including ₹ 2 premium) |
|
2,00,000 |
1,20,000
80,000 |
|
Bank A/c Dr.
To Equity Share Allotment A/c
(Share allotment received on all shares except on 1,600 Shares held by Ram) |
|
1,76,640 |
1,76,640 |
|
Equity Share First Call A/c Dr.
To Equity Share Capital A/c
(First call due on 40,000 shares at ₹ 2 each) |
|
80,000 |
80,000 |
|
Bank A/c Dr.
To Equity Share First Call A/c
(First call received on 36,400 shares and holders of 3,600 failed to pay it) |
|
72,800 |
72,800 |
|
Equity Share Second and Final Call A/c Dr.
To Equity Share Capital A/c
(Second and final call due on 40,000 shares at ₹ 3 each) |
|
1,20,000 |
1,20,000 |
|
Bank A/c Dr.
To Equity Share second and Final Call A/c
(Second and final call received on 36,400 shares and holders of 3,600 shares failed to pay it) |
|
1,09,200 |
1,09,200 |
|
Equity Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Equity Share Allotment A/c
To Equity Share first Call A/c
To Equity Share Second and Final Call A/c
(1600 shares held by Ram forfeited for non-payment amount due including premium) |
|
16,000
3,200 |
3,840
7,360
3,200
4,800 |
|
Equity Share Capital A/c Dr.
To Equity Share Forfeiture A/c
To Equity Share First Call A/c
To Equity Share Second and Final Call A/c
(2,000 shares held by Shyam forfeited for non-payment of amount due) |
|
20,000 |
10,000
4,000
6,000 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(3,600 shares of ₹ 10 each re-issued at ₹ 8 per share fully paid-up) |
|
28,800
7,200 |
36,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture transferred to Capital Reserve) |
|
6,640 |
6,640 |
Question 85: Competent Ltd. issued a prospectus inviting applications for 50,000 Equity Shares of ₹ 10 each, payable ₹ 5 as per application (including ₹ 2 as premium), ₹ 4 as per allotment and the balance towards first and final call.
Applications were received for 65,000 shares. Application money received on 5,000 shares was refunded with letter of regret and allotments were made on pro rata basis to the applicants of 60,000 shares. Money overpaid on applications including premium was adjusted on account of sums due on allotment.
Mr. Sharma to whom 700 shares were allotted failed to pay the allotment money and his shares were forfeited by the Directors on his subsequently failure to pay the call money.
All the forfeited shares were subsequently sold to Mr. Jain credited as fully paid-up for ₹ 9 per share.
You are required to set out the Journal entries and the relevant entries in the Cash Book.
Solution-:
| In the Books Competent Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c
To Securities Premium
To Equity Share Allotment A/c
(Share application money of 50,000 shares transferred to share capital at Rs 3 each and to premium Rs 2 each and Rs 50,000 adjusted on allotment) |
|
3,00,000 |
1,50,000
1,00,000
50,000 |
|
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
(Allotment due on 50,000 shares at Rs 4 each) |
|
2,00,000 |
2,00,000 |
|
Equity Share First and Final Call A/c Dr.
To Equity Share Capital A/c
(First and final call due on 50,000 shares at Rs 3 each) |
|
1,50,000 |
1,50,000 |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Equity Share Allotment A/c
To Equity Share First and Final A/c
(700 shares of Rs 10 each forfeited for the non-payment of amount due) |
|
7,000 |
2,800
2,100
2,100 |
|
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(Loss on issue Re 1 on 700 shares charged from the Share Forfeiture Account) |
|
700 |
700 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture after re-issue transferred to Capital Reserve) |
|
2,100 |
2,100 |
| Cash Book
Dr. Cr. |
| Particulars |
Amt. (₹) |
Particulars |
Amt. (₹) |
| Equity Share Application
Equity Share Allotment
Equity Share First and Final Call
Equity Share Capital |
3,25,000
1,47,900
1,47,900
6,300 |
Equity Share Application
Balance C/d |
25,000
6,02,000 |
|
6,27,100 |
|
6,27,100 |
Working Notes-
| Mr. Sharma’s Share |
| Number of shares applied by Mr Sharma |
| Money received on Application 840 shares × Rs 5 |
4,200 |
| Less: Money transferred to Share Capital 700 shares × Rs 3 |
2,100 |
| Less: Securities Premium 700 shares × Rs 2 |
1,400 |
| Excess money on Application |
700 |
|
| Allotment due 700 shares × 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 |
| 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 Shares × Rs 3 |
1,50,000 |
| Less: Calls in Arrears on 700 shares × Rs 3 |
2,100 |
| Money received on First and Final Call |
1,47,900 |
|
| Capital Reserve |
| Money received on Application from Mr Sharma |
4,200 |
| Less: Securities Premium 700 × Rs 2 |
1,400 |
| Share Forfeiture |
2,800 |
| Share Forfeiture 700 × Re 1 |
700 |
| Capital Reserve |
2,100 |
When all the forfeited Shares are not Reissued
Question 86: Nitro Paints Ltd. invited applications for issuing 1,60,000 equity shares of ₹ 10 each at a premium of ₹ 3 per share. The amount was payable as follows:
On application
|
₹ 6 per share(including premium ₹1);
|
On allotment
|
₹ 3 per share(including premium ₹ 1)
|
The balance
|
on First and Final call
|
Applications for 1,80,000 shares were received .Applications for 10,000 shares were rejected and pro rata allotment was made to the remaining applicants. Over payment received on application was adjusted towards sums due on allotment . All calls were made and were duly received except allotment and final call from Aditya who was allotted 3,200 shares. His shares were forfeited . Half of the forfeited shares were reissued for ₹ 43,000 as fully paid-up .
Pass necessary journal entries for the above transactions in the books of Nitro Paints Ltd.
Solution-:
| In the Books Nitro Paints Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c (1,80,000 × 6) Dr.
To Equity Share Application A/c
(Application money received) |
|
10,80,000 |
10,80,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c(1,60,000 × 5)
To Securities Premium Reserve A/c (1,60,000 × 1)
To Share Allotment A/c(10,000 × 6)
To Bank A/c (10,000 × 6)
(Application money transferred) |
|
10,80,000 |
8,00,000
1,60,000
60,000
60,000 |
|
Equity Share Allotment A/c (1,60,000 × 3) Dr.
To Equity Share Capital A/c(1,60,000 × 2)
To Securities Premium Reserve A/c(1,60,000 × 1)
(Allotment money due) |
|
4,80,000 |
3,20,000
1,60,000 |
|
Bank A/c (4,80,000 ─ 60,000 ─ 8,400) Dr.
To Equity Share Allotment A/c
(Allotment money received) |
|
4,11,600 |
4,11,600 |
|
Equity Share First Call A/c (1,60,000 × 4) Dr.
To Equity Share Capital A/c
To Securities Premium Reserve A/c
(Call money due) |
|
6,40,000 |
4,80,000
1,60,000 |
|
Bank A/c Dr.
To Equity Share First Call A/c
(Call money received) |
|
6,27,200 |
6,27,200 |
|
Equity Share Capital A/c (3,200 × 10) Dr.
Securities Premium Reserve A/c (3,200 × 2)Dr.
To Equity Share Allotment A/c
To Equity Share First & Final Call A/c
To Equity Share Forfeiture A/c
(3,200 shares forfeited) |
|
32,000
6,400 |
8,400
12,800
17,200 |
|
Bank A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(1,600 shares re–issued) |
|
43,000 |
16,000
27,000 |
|
Equity Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Profit on re-issue transferred) |
|
8,600 |
8,600 |
Working Notes:
Shares Applied by Aditya = 1,70,0001,/ 60,000 × 3,200 = 3,400
| Amount unpaid by Aditya on Allotment |
| Application money received |
20,400 |
| Less: Transferred to Share Capital |
(19,200) |
| Excess received on Application |
1,200 |
| Allotment money due |
9,600 |
| Less: Excess adjustment |
(1,200) |
| Amount unpaid by Aditya |
8,400 |
Question 87: Raja Ltd. invited applications for issuing 50,000 Equity Shares of ₹ 10 each . The amount was payable as follows:
On application
|
₹ 3 per share
|
On allotment
|
₹ 5 per share
|
On first and final call
|
Balance
|
Applications for 70,000 shares were received . Allotment was made to all applicants on pro rata basis. Excess money received on application was adjusted towards sums due on allotment . Ramesh, who had applied for 700 shares , did not pay the allotment money and on his failure to pay the allotment money his shares were forfeited. Afterwards , the first and the final call was made . Adhar, who had been allotted 500 shares, did not pay the first and final call . His shares were also forfeited . Out of the forfeited shares 900 shares were reissued at ₹ 8 per share as fully paid-up . The reissued shares included all the shares of Ramesh.
Pass necessary journal entries for the above transactions in the books of the company.
Solution-:
| In the Books Raja Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c (3×70,000) Dr.
To Equity Share Application A/c
(Application money on 70,000 shares received) |
|
2,10,000 |
2,10,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c (3×50,000)
To Equity Share Allotment A/c (WN2)
(Share Application money on 50,000 shares transferred to share capital account and excess was utilised on allotment) |
|
2,10,000 |
1,50,000
60,000 |
|
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
(Allotment money due on allotment) |
|
2,50,000 |
2,50,000 |
|
Bank A/c (WN2) Dr.
To Equity Share Allotment A/c
(Allotment money received on 49,500 shares and Rs 60,000 excess money adjusted) |
|
1,88,100 |
1,88,100 |
|
Equity Share Capital A/c Dr.
To Equity Share Allotment A/c(WN1)
To Equity Share Forfeiture A/c(WN1)
(500 shares forfeited for non payment of allotment money |
|
4,000 |
1,900
2,100 |
|
Equity Share First and Final Call A/c Dr.
To Equity Share Capital A/c
(Share Call money due) |
|
99,000 |
99,000 |
|
Bank A/c Dr.
To Equity Share First and Final Call A/c
(Call money received on 49,000 shares) |
|
98,000 |
98,000 |
|
Equity Share Capital A/c Dr.
To Equity Share First and Final Call A/c
To Equity Share Forfeiture A/c (8×500)
(500 shares forfeited for non payment of Call money) |
|
5,000 |
1,000
4,000 |
|
Bank A/c Dr.
Equity Share Forfeiture A/c Dr.
To Equity Share Capital
(900 shares reissued at Rs 8 per share)
(Share call money received and Calls-in-Advance money adjusted) |
|
7,200
1,800 |
9,000 |
|
Share Forfeiture A/c (WN3) Dr.
To Capital Reserve A/c
(Profit on forfeiture of shares transferred) |
|
3,500 |
3,500 |
Question 88: Prince Limited issued a prospectus inviting applications for 20,000 equity shares of ₹10 each at a premium of ₹ 3 per share payable as follows:
| With application |
₹ 2 |
| On allotment (including premium) |
₹ 5 |
| On first call |
₹ 3 |
| On second call |
₹ 3 |
Applications were received for 30,000 shares and allotment was made on pro rata basis. Money overpaid on application s was adjusted to the amount due on allotment.
Mr Mohit whom 400 shares were allotted , failed to pay the allotment money and the first call , and his shares were forfeited after the first call . Mr Joly, whom 600 shares were allotted , failed to pay for the two calls and hence, his shares were forfeited .
Of the shares forfeited, 800 shares were reissued to Supriya as fully paid for ₹ 9 per share , the whole of Mr Mohit’s shares being included.
Solution-:
| In the Books Prince Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Share Application A/c
(Application money received on 30,000 shares @ Rs 2 per share) |
|
60,000 |
60,000 |
|
Share Application A/c Dr.
To Share Capital A/c
To Share Allotment A/c
(Application money received transferred to Share Capital and adjusted on allotment) |
|
60,000 |
40,000
20,000 |
|
Share Allotment A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Allotment money due on 20,000 shares @ Rs 5 per share including premium of Rs 3 per share) |
|
1,00,000 |
40,000
60,000 |
|
Bank A/c (1,00,000 – 20,000 – 1,600) Dr.
To Share Allotment A/c
(Allotment money received) |
|
78,400 |
78,400 |
|
Share First Call A/c Dr.
To Share Capital A/c
(Share First Call due on 20,000 shares @ Rs 3 per share) |
|
60,000 |
60,000 |
|
Bank A/c (60,000 – 1,200 – 1,800) Dr.
To Share First Call A/c
(First call money received) |
|
57,000 |
57,000 |
|
Share Capital A/c Dr.
Share Premium A/c Dr.
To Share Forfeiture A/c
To Share Allotment A/c
To Share First Call A/c
(400 shares forfeited) |
|
2,800
1,200 |
1,200
1,600
1,200 |
|
Share Second Call A/c Dr.
To Share Capital A/c
(Final Call money due on 19,600 shares @ 3 per share) |
|
58,800 |
58,800 |
|
Bank A/c (58,800 – 1,800) Dr.
To Share Second Call A/c
(Second Call money received) |
|
57,000 |
57,000 |
|
Share Capital A/c Dr.
To Share Forfeiture A/c
To Share First Call A/c
To Share Second Call A/c
(600 shares forfeited) |
|
6,000 |
2,400
1,800
1,800 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(800 shares reissued @ Rs 9 each) |
|
7,200
800 |
8,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve
(Profit on re–issue transferred to Capital Reserve) |
|
2,000 |
2,000 |
| Prince Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
(b) Reserve & Surplus
2. Non-Current Liabilities
3. Current Liabilities |
1
2 |
1,98,800
60,800 |
| 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 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
…….. shares of Rs 10 each
Issued Share Capital
20,000 shares of Rs 10 each
Subscribed, Called–up and Paid–up Share Capital
19,800 shares of Rs 10 each 1,98,000
Add: Share Forfeiture (200 × 4) 800 |
2,00,000
1,99,680 |
| 2. |
Reserves and Surplus
Securities Premium 1,00,000
Capital Reserve 320 |
1,99,800 |
| 3. |
Cash and Cash Equivalents
Cash at Bank |
2,59,600 |
Working Notes:
| WN1: Calculation of unpaid amount on allotment by Mohit |
| Shares Applied by Mohit=30,00020,000×400=600 |
| 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 Joly’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 |
Question 89: XYZ Ltd. invited applications for issuing 50,000 Equity Shares of ₹ 10 each . The amount was payable as:
On application
|
₹ 3 per share
|
On allotment
|
₹ 4 per share
|
On first and final call
|
₹ 3 per share
|
Applications were received for 75,000 shares and pro rata allotment was made as:
Applicants for 40,000 shares were allotted 30,000 shares on pro rata basis.
Applicants for 35,000 shares were allotted 30,000 shares on pro rata basis.
Ramu, to whom 1,200 shares were allotted out of the group applying for 40,000 shares, failed to pay the allotment money. His shares were forfeited immediately after allotment .
Shamu, who had applied for 700 shares out of the group applying for 35,000 shares , failed to pay the first and final call . His shares were also forfeited. Out of the forfeited shares, 1,000 shares were reissued @₹8 per share as fully paid-up. The reissued shares included all the forfeited shares of Shamu.
Pass necessary Journal entries to record the above transactions.
Solution-:
| In the Books Prince Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Equity Share Application A/c
(Share application money received for 75,000 shares at Rs 3 each) |
|
2,25,000 |
2,25,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c
To Equity Share Allotment A/c
(Application money of 50,000 shares transferred to share capital and the remaining amount adjusted on allotment) |
|
2,25,000 |
1,50,000
75,000 |
|
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
(Share allotment due on 50,000 shares at Rs 4 each) |
|
2,00,000 |
2,00,000 |
|
Bank A/c Dr.
To Equity Share Allotment A/c
(Share allotment received on 48,800 shares after adjusting the excess money on application) |
|
1,21,400 |
1,21,400 |
|
Equity Share Capital A/c (1,200 × Rs 7) Dr.
To Share Forfeiture A/c
To Equity Share Allotment A/c
(1,200 shares of Rs 10 each Rs 7 called-up forfeited for the non-payment of allotment) |
|
8,400 |
4,800
3,600 |
|
Equity Share First and Final Call A/c Dr.
To Equity Share Capital A/c
(First and final call due on 48,800 shares at Rs 3 each) |
|
1,46,400 |
1,46,400 |
|
Bank A/c Dr.
To Equity Share First and Final Call A/c
(Share first and call received 48,800 shares at Rs 3 each) |
|
1,45,200 |
1,45,200 |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c (400 × Rs 7)
To Equity Shares First and Final Call A/c
(400 shares forfeited for the non-payment of first and final call) |
|
4,000 |
2,800
1,200 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(1,000 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up) |
|
8,000
2,000 |
10,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance of 1,000 re-issued shares in Share Forfeiture Account transferred to Capital Reserve Account) |
|
3,200 |
3,200 |
Working Notes-
| Rumu’s Share |
| Number of shares applied |
₹ 1,600 Shares |
| Money received on Application 1,600 shares × Rs 3 |
₹ 4,800 |
| Money adjusted on Application 1,200 Shares × Rs 3 |
₹ 3,000 |
| Excess on Application |
₹ 1,200 |
|
| Allotment due on 1,200 shares × Rs 4 |
₹ 4,800 |
| Less: Excess money on Application |
₹ 3,000 |
| Calls-in-Arrears on Allotment |
₹ 1,200 |
| Share Allotment |
| Share Allotment due 50,000 shares × Rs 4 |
2,00,000 |
| Less: Excess money on application |
75,000 |
|
1,25,000 |
| Less: Calls-in-Arrears on Allotment |
3,600 |
| Money received on Allotment |
1,21,400 |
|
| Shamu’s Shares |
| Number of shares allotted to Shamu
First and Final Call
First and Final Call due; 48,800 shares × 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 |
|
| Capital Reserve
Shares re-issued out the shares forfeited from Ramu
= 1,000 shares − Shamu’s shares
= 1,000 – 400
= 600 shares |
Question 90: Super Star Ltd. issued a prospectus inviting applications for 2,000 shares of ₹ 10 each at a premium of ₹ 2 per share , payable as:
| On application |
₹ 3 per share (including ₹ 1 premium), |
| On allotment |
₹ 4 per share (including ₹ 1 premium), |
| On first call |
₹ 3 per share |
| On second and final call |
₹ 2 per share |
Applications were received for 3,000 shares and pro rata allotment was made on the applications for 2,400 shares . It was decided to utilise excess application money towards the amount due on allotment .
Ramesh, to whom 40 shares were allotted , failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited.
Rajesh, who applied for 72 shares failed to pay the two calls and on such failure, his shares were forfeited .
Of the shares forfeited, 80 shares were sold to Krishan credited as fully paid-up for ₹ 9 per share, the whole of Ramesh’s shares being included.
Give journal entries to record the above transactions ( including cash transactions).
Solution-:
| In the Books of Super Star Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Share Application A/c
(Share application money received for 3,000 shares at Rs 3 per share including Re 1 premium) |
|
9,000 |
9,000 |
|
Share Application A/c Dr.
To Share Capital A/c
To Securities Premium A/c
To Share Allotment A/c
To Bank A/c
(Share application money of 2,000 shares transferred to Share Capital and securities premium at Rs 2, and Re 1 each respectively, Rs 1,800 adjusted on allotment and remaining Rs 1,200 refunded) |
|
9,000 |
4,000
2,000
1,200
1,800 |
|
Share Allotment A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Allotment due on 2,000 shares at Rs 4 per share including Re 1 premium) |
|
8,000 |
6,000
2,000 |
|
Bank A/c Dr.
To Share Allotment A/c
(Allotment received for 1960 shares after adjustment of excess application money) |
|
6,664 |
6,664 |
|
Share First Call A/c Dr.
To Share Capital A/c
(First call due on 2,000 shares of at Rs 3 per share) |
|
6,000 |
6,000 |
|
Bank A/c Dr.
To Share First Call A/c
(Share First Call received for 1,900 shares) |
|
5,700 |
5,700 |
|
Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c (144 – 40)
To Share Allotment A/c
To Share First Call A/c
(40 shares of Rs 10 each, Rs 8 called-up for non-payment of money due on allotment and first including Re 1 premium) |
|
320
40 |
104
136
120 |
|
Share Final Call A/c Dr.
To Share Capital A/c
(Final call due on 1,960 shares at Rs 2 each) |
|
3,920 |
3,920 |
|
Bank A/c Dr.
To Share Final Call A/c
(Final call received for 1,900 shares) |
|
3,800 |
3,800 |
|
Share Capital A/c Dr.
To Share Forfeiture A/c
To Share First Call A/c
To Share Final Call A/c
(60 shares forfeited for the non-payment of first call and final call money) |
|
600 |
300
180
120 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(80 shares of Rs 10 each re-issued at Rs 9 per share fully paid-up) |
|
720
80 |
800 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture Account of 80 re-issued shares transferred to Capital Reserve) |
|
224 |
224 |
Working Notes-
| Ramesh’s Shares
Number of shares applied |
| Money received on Application (48 shares × Rs 3) |
₹ 144 |
| Less: Application money adjusted to Share Capital (40 shares × Rs 2) |
₹ 80 |
| Less: Securities Premium (40 shares × Re 1) |
₹ 40 |
| Excess money Application |
₹ 24 |
|
| Allotment due (40 shares × Rs 4) |
₹ 160 |
| Less: Excess money on Application |
₹ 24 |
| Calls-in-Arrears |
₹ 136 |
| Rajesh’s Shares
Number of shares allotted = 2,0002,400×72=60 shares
Share Allotment |
| Money due on Allotment (2,000 shares × Rs 4) |
8,000 |
| Less: Excess application money adjusted |
1,200 |
| Less: Calls-in-Arrears |
136 |
| Money received on Allotment |
6,634 |
Question 91: Bharat Ltd . invited applications for issuing 2,00,000 Equity Shares of ₹ 10 each. The amount was payable as:
On application ₹ 3 per share , on allotment ₹ 5 per share and on first and final call ₹ 2 per share. Applications for 3,00,000 shares were received and pro rata allotment was made to all the applicants on the following basis:
Applicants for 2,00,000 shares were allotted 1,50,000 shares on pro rata basis.
Applicants for 1,00,000 shares were allotted 50,000 shares on pro rata basis.
Bajaj, who was allotted 3,000 shares out of group applying for 2,00,000 shares failed to pay the allotment money. His shares were forfeited immediately after allotment . Sharma, who had applied for 2,000 shares out of the group applying for 1,00,000 shares failed to pay the first and final call . His shares were also forfeited.
Out of the forfeited shares 3,500 shares were reissued as fully paid-up @ ₹ 8 per share . The reissued shares included all the forfeited shares of Bajaj.
Give necessary journal entries to record the above transactions.
Solution-:
| In the Books of Bharat Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Bank A/c Dr.
To Equity Share Application A/c
(Application money received for 3,00,000 shares at Rs 3 each) |
|
9,00,000 |
9,00,000 |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c
To Equity Share Allotment A/c
(Application money of 2,00,000 shares at Rs 3 each transferred to Shares Capital and excess money Rs 3,00,000 adjusted on allotment) |
|
9,00,000 |
6,00,000
3,00,000 |
|
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
(Allotment due on 2,00,000 shares at Rs 5 each) |
|
10,00,000 |
10,00,000 |
|
Bank A/c Dr.
To Equity Share Allotment A/c
(Allotment received on 1,97,000 shares) |
|
6,88,000 |
6,88,000 |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Share Allotment A/c
(3,000 shares forfeited for the non-payment of money due on allotment) |
|
24,000 |
12,000
12,000 |
|
Equity Share First and Final Call A/c Dr.
To Equity Share Capital A/c
(First and Final call due on 1,97,000 shares at Rs 2 per share) |
|
3,94,000 |
3,94,000 |
|
Bank A/c Dr.
To Equity Share First and Final Call A/c
(Share First and Final Call received on 1,97,000 shares) |
|
3,92,000 |
3,92,000 |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Equity Share First and Final Call A/c
(1,000 shares forfeited for the non-payment of first and final call) |
|
10,000 |
8,000
2,000 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(3,500 shares of Rs 10 each re-issued at Rs 8 per share fully paid-up) |
|
28,000
7,000 |
35,000 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture of 3,500 re-issued shares transferred to Capital Reserve) |
|
9,000 |
9,000 |
Working Note:
| Bajaj’s Share
Number of shares applied |
| Money received on Application (4,000 shares × Rs 3) |
₹ 12,000 |
| Less: Money transferred to Shares capital (3000 shares × Rs 3) |
₹ 9,000 |
| Excess money on Application |
₹ 3,000 |
|
| Allotment due (3,000 shares × 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 shares × Rs 5) |
₹ 10,00,000 |
| Less: Excess money on Application |
₹ 3,00,000 |
| Less: Calls-in-Arrears on Bajaj’s shares |
₹ 12,000 |
| Money received on Allotment |
₹ 6,88,000 |
Question 92: The Directors of Super Star Ltd. invited applications for 2,00,000 Equity Shares of ₹ 10 each to be issued at 20% premium. The money payable per shares was: on application ₹ 5, on allotment ₹ 4 (including premium of ₹ 2), first call ₹ 2 and final call ₹ 1.
Applications were received for 2,40,000 shares and allotment was made as:
(i) to applicants for 1,00,000 shares— in full,
(ii) to applicants for 80,000 shares—60,000 shares,
(iii) to applicants for 60,000 shares—40,000 shares.
Applicants of 1,000 shares falling in Category
(i) and applicants of 1,200 shares falling in Category
(ii) failed to pay allotment money. These shares were forfeited on failure to pay first call. Holders of 1,200 shares falling in Category
(iii) failed to pay the first and final call and these shares were forfeited after final call.
1,300 shares[1,000 of Category(i) and 300 of Category (ii)] were reissued at ₹ 8 per share as fully paid-up.
Journalise the above transactions. Prepare Cash book and Balance Sheet.
Solution-:
| Cash Book
Dr. Cr. |
| Particulars |
Amt. (₹) |
Particulars |
Amt. (₹) |
| Equity Share Application (2,40,000 × Rs 5)
Equity Share Allotment (See note-2)
Equity Share First Call (See note-3)
Equity Share First Call
(1,96,900 shares × Re 1)
Equity Share Capital (1,000 shares of category i)
Equity Share Capital (300 shares of category ii) |
12,00,000
5,93,900
3,93,800
1,96,900
8,000
2,400 |
Balance C/d |
23,95,000 |
|
23,95,000 |
|
23,95,000 |
| In the Books of Super Star Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Equity Share Application A/c Dr.
To Equity Share Capital A/c
To Equity Share allotment A/c
(Equity Share application money of 2,00,000 shares at Rs 5 each transferred to Share Capital and Rs 2,00,000 adjusted on allotment) |
|
12,00,000 |
10,00,000
2,00,000 |
|
Equity Share Allotment A/c Dr.
To Equity Share Capital A/c
To Securities Premium A/c
(Share allotment due on 2,00,000 shares at Rs 4 each including Rs 2 premium) |
|
8,00,000 |
4,00,000
4,00,000 |
|
Equity Share First Call A/c Dr.
To Equity Share Capital A/c
(First call due on 2,00,000 shares at Rs 2 each) |
|
4,00,000 |
4,00,000 |
|
Equity Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Equity Share Allotment A/c
To Equity Share First Call A/c
(1,000 shares of category (i) Rs 10 each, on which Rs 8 had called-up, forfeited for the non-payment of amount due) |
|
9,000
2,000 |
5,000
4,000
2,000 |
|
Equity Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Equity Shares Allotment A/c
To Equity Shares First-Call A/c
(900 shares of category (ii) forfeited for the non-payment of amount due) |
|
8,100
1,800 |
6,000
2,100
1,800 |
|
Equity Share Final Call A/c Dr.
To Equity Shared Capital A/c
(Final call due on 1,98,100 shares at Re 1 each) |
|
1,98,100 |
1,98,100 |
|
Equity Share Capital A/c Dr.
To Share Forfeiture A/c
To Share First Call A/c
To Share Final Call A/c
(1,200 shares of category (iii) forfeited for the non-payment amount due) |
|
12,000 |
8,400
2,400
1,200 |
|
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(Loss on re-issue of 1,000 shares of category (i) charged from Share Forfeiture Account) |
|
2,000 |
2,000 |
|
Share Forfeiture A/c Dr.
To Equity Share Capital A/c
(Loss on re-issue of 300 of category (ii) charged from Share Forfeiture Account) |
|
600 |
600 |
|
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Balance in Share Forfeiture Account of 1,300 re-issued shares transferred to Capital Reserve) |
|
4,400 |
4,400 |
| Super Star Ltd.
BALANCE SHEET as on 31st March 20…. |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
(b) Reserve & Surplus
2. Non-Current Liabilities
3. Current Liabilities |
1
2 |
19,94,400
4,00,600 |
| Total |
|
23,95,000 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
3 |
23,95,000 |
| Total |
|
23,95,000 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
……. Equity Shares of Rs 10 each
Issued Share Capital
2,00,000 Equity Shares of Rs 10 each
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 |
20,00,000
19,94,000 |
| 2. |
Reserves and Surplus
Securities Premium 3,96,200
Capital Reserve 4,400 |
4,00,600 |
| 3. |
Cash and Cash Equivalents
Cash at Bank |
23,95,000 |
Working Notes:
| 1. 1,200 shares of Category (ii)
Number of share allotted |
| Money received on application (1,200 shares × Rs 5) |
₹ 6,000 |
| Less: Application money transferred to Share Capital (900 shares × Rs 5) |
₹ 4,500 |
| Excess money received from 1,200 shares on Application |
₹ 1,500 |
|
| Money due on Allotment (900 shares × Rs 4) |
₹ 3,600 |
| Less: Excess money on Application |
₹ 1,500 |
| Calls-in-Arrears on Allotment of category (ii) |
₹ 2,100 |
|
| 2. Share Allotment |
| Money due on Allotment (2,00,000 shares × Rs 4) |
₹ 8,00,000 |
| Less: Excess money on Application |
₹ 2,00,000 |
| Less: Calls-in-Arrears 1,000 shares of category (i) (1,000 shares × 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 shares × Rs 2 |
₹ 4,00,000 |
| Less: Calls-in-Arrears on 3,100 shares × Rs 2 (1,000 + 900 + 1,200 shares of category (i), (ii) and (iii) respectively) |
₹ (6,200) |
| Money received on First Call |
₹ 3,93,800 |
|
| 4. Share Final Call |
| Money due on Share Final Call (2,00,000 – 1900) × 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 |
Question 93: XYZ Ltd . issued a prospectus inviting applications for 2,000 shares of ₹ 10 each at a premium of ₹ 4 per share , payable as:
| On application |
₹ 6 (including ₹ 1 premium) |
| On allotment |
₹ 2 (including ₹ 1 premium) |
| On first call |
₹ 3 (including ₹ 1 premium) |
| On second and final call |
₹ 3 (including ₹ 1 premium) |
Applications were received for 3,000 shares and pro rata allotment was made on the applications for 2,400 shares. It was decided to utilise excess application money towards the amount due on allotment .
X, to whom 40 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call , his shares were forfeited.
Y, who applied for 72 shares failed to pay the two calls and on his such failure , his shares were forfeited. Of the shares forfeited , 80 shares were sold to Z credited as fully paid-up for ₹ 9 per share , the whole of Y’s shares being included . Prepare Journal , Cash Book and the Balance Sheet .
Solution-:
| Cash Book
Dr. Cr. |
| Particulars |
Amt. (₹) |
Particulars |
Amt. (₹) |
| Share Application
(3,000 shares × Rs 6)
Share Allotment (see note-2)
Share First Call (see note-4)
Share Final Call (see note-5)
Share Capital
(80 shares × Rs 9) |
18,000
1,568
5,700
5,700
720 |
Share Application
(600 shares × Rs 6)
Balance c/d |
3,600
28,088 |
|
31,688 |
|
31,688 |
| In the Books of XYZ Ltd.
JOURNAL |
| Date |
Particular |
l.F. |
Dr. Amount ₹ |
Cr. Amount ₹ |
|
Share Application A/c Dr.
To Share Capital A/c
To Securities Premium A/c
To Share Allotment A/c
(Share application money of 2,000 shares transferred to Share Capital and Securities Premium at Rs 5 and Re 1 each respectively and Rs 2,400 adjusted on allotment) |
|
14,400 |
10,000
2,000
2,400 |
|
Share Allotment A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Allotment due on 2,000 shares at Rs 2 each including Re 1 premium) |
|
4,000 |
2,000
2,000 |
|
Share First Call A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(First call due on 2,000 shares at Rs 3 each including Re 1 premium) |
|
6,000 |
4,000
2,000 |
|
Share Capital A/c (40 shares × Rs 8) Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Share Allotment A/c
To Share First Call A/c
(40 shares of Rs 10 each Rs 8 called with premium forfeited for non-payment of amount due) |
|
320
72 |
240
32
120 |
|
Share Final Call A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Final call due on 1,960 shares at Rs 3 each including Re 1 premium) |
|
5,880 |
3,920
1,960 |
|
Share Capital A/c Dr.
Securities Premium A/c Dr.
To Share Forfeiture A/c
To Share First Call A/c
(60 shares forfeited for non-payment of amount due) |
|
600
120 |
360
360 |
|
Bank A/c Dr.
Share Forfeiture A/c Dr.
To Shares Capital A/c
(80 shares of Rs 10 each re-issued at Rs 9 per share fully paid-up) |
|
720
80 |
800 |
|
Share Forfeiture A/c Dr.
To Capital Reserve
(Balance of 80 reissued shares in Share Forfeiture Account transferred to Capital Reserve) |
|
400 |
400 |
| XYZ Ltd.
BALANCE SHEET as on 31st March 2015 |
|
Particulars |
Note No. |
Amount (₹) |
| (I) EQUITY AND LIABILITIES
1. Shareholders’Funds
(a) Share Capital
(b) Reserve & Surplus
2. Non-Current Liabilities
3. Current Liabilities |
1
2 |
19,920
8,168 |
| Total |
|
28,088 |
| (ii). ASSETS
1. Non-Current Assets
2. Current Assets
(a) Cash and Cash Equivalents |
3 |
28,088 |
| Total |
|
28,088 |
Note to Account
| Note No. |
Particulars |
Amount (₹) |
| 1. |
Share Capital
Authorised Share Capital
……. shares of Rs 10 each
Issued Share Capital
2,000 shares of Rs 10 each
Subscribed, Called-up and Paid-up Share Capital
1,980 shares of Rs 10 each 19,800
Add: Shares Forfeited (20 shares × Rs 6) 120 |
20,000
19,920 |
| 2. |
Reserves and Surplus
Securities Premium 7,768
Capital Reserve 400 |
8,168 |
| 3. |
Cash and Cash Equivalents
Cash at Bank |
28,088 |
Working Notes:
| 1. X’s Shares
Number of share applied by X |
| Money received on application (48 shares × Rs 6) |
₹ 288 |
| Less: Money transferred to Shares Capital (40 shares × Rs 5) |
₹ 200 |
| Less: Securities Premium (40 shares × Re 1) |
₹ 40 |
| Excess money on application from X |
₹ 48 |
|
| Utilisation of excess application money received from X |
| Share Capital due on Allotment (40 shares × Re 1) |
₹ 40 |
| Less: Excess money on Application from X |
₹ 48 |
| Excess money after adjustment of Share Capital on Allotment |
₹ 8 |
|
| Securities Premium due on Allotment (40 shares × Re 1) |
₹ 40 |
| Less: Excess money after adjustment of Share Capital on Allotment |
₹ 8 |
| Calls-in-Arrears of Securities Premium on Allotment |
₹ 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 shares (securities premium) |
₹ 32 |
| Money received on allotment |
₹ 1,568 |
|
|
3. Share First Call
| Money due on Share First Call (2,000 shares × Rs 3) |
₹ 6,000 |
| Less: Calls-in-Arrears on X‘s shares (40 shares × Rs 3) |
₹ 120 |
| Less: Calls-in-Arrears on Y’s shares (60 shares × Rs 3) |
₹ 180 |
| Money received on Share First Call |
₹ 5,700 |
4. Share Final Call
| Money due on share Final Call (1,960 shares × Rs 3) |
₹ 5,880 |
| Less: Calls-in-Arrears on Y’s shares (60 shares × Rs 3) |
₹ 180 |
| Money received on Share Final Call |
₹ 5,700 |
