Question 12 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 12 Chapter 8 of +2-A

12. Bharat ltd. was incorporated with a capital of Rs 2,00,000 divided into shares of Rs 10 each. 2,000 shares were offered for subscription and out of these,1,800 shares were applied for and allotted.Rs 3 per share (including Rs 1 premium) on an allotment, Rs 2 per share on the first call. All money was received.
Give necessary journal entries and show share capital in the balance sheet.

The solution of Question 12 Chapter 8 of +2-A: - 

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		5400
	To equity share application A/c				5400
	(Being the application money received )
	Equity Share application A/c	Dr		5400
	To Equity share capital A/c				3600
	To equity share premium A/c				1800
	(Being application money transferred to equity share capital )
	Equity Share allotment A/c			7200
	To Equity share allotment A/c				5400
	To Equity share premium A/c				1800
	(Being the allotment money due )
	Cash A/c	Dr		7200
	To Equity share allotment A/c				7200
	(Being application money transferred to equity share capital )
	Equity Share first call A/c	Dr		3600
	To Equity Share capital A/c				3600
	(Being the first call money due )
	Cash A/c	Dr		3600
	To Equity Share first, call A/c				3600
	(Being first call money received )
	Equity Share second call A/c	Dr		5400
	To Equity Share capital A/c				5400
	(Being the second call money due )
	Cash A/c	Dr		5400
	To Equity share second call A/c				5400
	(Being second call money received and money of 200 shares were not received capital )

 

Cash Book		Cr.
Particulars (1)	Note no. (2)	Figures as at the end of the Previous Reporting Period (3)
I. Equity and Liabilities
1. Shareholders’ Funds
(a) Share Capital	(1)	18000
		18000

 

Equity share capital A/c		Cr.
Particulars	Particulars	Amount
Share capital
Authorized capital
20,000 Equity share of Rs 10 each		2,00,000
Issued capital
2000 equity shares of Rs 10 each		20,000
Subscribed capital
Subscribed and fully paid-up
1800 Equity shares of Rs 10 each
On application (1800 *Rs 2 each )	3600
On allotment (1800 *Rs 3 each )	5400
On first call (1800 *Rs 2 each )	3600
On final call (1800 *Rs 3each )	5400	18,000
		18,000

 

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

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