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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Venus Ltd. was registered with an authorised capital of ₹40,00,000, divided into 4,00,000 equity shares of ₹10 each. 70,000 of these shares were issued as fully paid to M/s. Star Ltd. for a building purchased from them. 2,00,000 shares were issued to the public, payable: on Application ₹3 per share, on Allotment ₹2 per share, on First Call ₹2 per share, on Second and Final Call ₹3 per share. The amounts received on these shares were: on 1,00,000 shares, the full amount called; on 60,000 shares, ₹7 per share; on 30,000 shares, ₹5 per share; on 10,000 shares, ₹3 per share. The Directors forfeited 10,000 shares on which only ₹3 per share had been received. These shares were reissued at ₹12 per share, fully paid. Pass the necessary Journal entries in the books of Venus Ltd. (CBSE 2019)
JOURNAL (Books of Venus Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Building A/c (70,000 × ₹10) Dr. | 7,00,000 | |||
| To M/s Star Ltd. A/c | 7,00,000 | |||
| (Building purchased from M/s Star Ltd.) | ||||
| M/s Star Ltd. A/c Dr. | 7,00,000 | |||
| To Equity Share Capital A/c | 7,00,000 | |||
| (Purchase consideration discharged by issue of 70,000 equity shares of ₹10 each, fully paid) | ||||
| Bank A/c (2,00,000 × ₹3) Dr. | 6,00,000 | |||
| To Equity Share Application A/c | 6,00,000 | |||
| (Application money received on 2,00,000 shares) | ||||
| Equity Share Application A/c Dr. | 6,00,000 | |||
| To Equity Share Capital A/c | 6,00,000 | |||
| (Application money transferred to Share Capital) | ||||
| Equity Share Allotment A/c (2,00,000 × ₹2) Dr. | 4,00,000 | |||
| To Equity Share Capital A/c | 4,00,000 | |||
| (Allotment due on 2,00,000 shares) | ||||
| Bank A/c (1,90,000 × ₹2) Dr. | 3,80,000 | |||
| Calls-in-Arrears A/c (10,000 × ₹2) Dr. | 20,000 | |||
| To Equity Share Allotment A/c | 4,00,000 | |||
| (Allotment received on 1,90,000 shares; holders of 10,000 shares failed to pay) | ||||
| Equity Share First Call A/c (2,00,000 × ₹2) Dr. | 4,00,000 | |||
| To Equity Share Capital A/c | 4,00,000 | |||
| (First call due on 2,00,000 shares) | ||||
| Bank A/c (1,60,000 × ₹2) Dr. | 3,20,000 | |||
| To Equity Share First Call A/c | 3,20,000 | |||
| (First call received on 1,60,000 shares) | ||||
| Equity Share Second & Final Call A/c (2,00,000 × ₹3) Dr. | 6,00,000 | |||
| To Equity Share Capital A/c | 6,00,000 | |||
| (Second and final call due on 2,00,000 shares) | ||||
| Bank A/c (1,00,000 × ₹3) Dr. | 3,00,000 | |||
| To Equity Share Second & Final Call A/c | 3,00,000 | |||
| (Second and final call received on 1,00,000 shares; the remaining 1,00,000 shares in arrears) | ||||
| Equity Share Capital A/c (10,000 × ₹10) Dr. | 1,00,000 | |||
| To Calls-in-Arrears A/c (10,000 × ₹2) | 20,000 | |||
| To Equity Share First Call A/c (10,000 × ₹2) | 20,000 | |||
| To Equity Share Second & Final Call A/c (10,000 × ₹3) | 30,000 | |||
| To Share Forfeiture A/c (10,000 × ₹3) | 30,000 | |||
| (10,000 shares, on which only ₹3 per share was received, forfeited) | ||||
| Bank A/c (10,000 × ₹12) Dr. | 1,20,000 | |||
| To Equity Share Capital A/c (10,000 × ₹10) | 1,00,000 | |||
| To Securities Premium Reserve A/c (10,000 × ₹2) | 20,000 | |||
| (10,000 forfeited shares reissued at ₹12 per share, fully paid-up) | ||||
| Share Forfeiture A/c Dr. | 30,000 | |||
| To Capital Reserve A/c | 30,000 | |||
| (Balance of Share Forfeiture transferred to Capital Reserve) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.78 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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