Question 18 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 18 Chapter 8 of +2-A – T.S. Grewal 12 Class

By Shubham Sharma 8 Min Read December 20, 2020

Question No.18 - Chapter No.8 - T.S. Grewal +2 Book 2019-Solution-min-min

Question 18 Chapter 8 of +2-A

Table of Contents

The solution of Question 18 Chapter 8 of +2-A: –

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

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

18. Eastern company Limited, having an authorized capital of Rs 1,00,000 divided into shares of Rs 10 each, issued 50000 shares at a premium of Rs 3 per share payable as follow:

On application	Rs 3 per share
On allotment(including premium )	Rs 5 per share
On the first call (due three months after allotment) and the balance as and when required.	Rs 3 per share

Applications were received for 60,000 shares and the directions allotted the shares as follows:

Applicants for 40,000 shares received in full.
Applicants for 15,000 shares received an allotment of 8,000 shares.
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.

The solution of Question 18 Chapter 8 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr.		1,80,000
	To equity share application A/c				1,80,000
	(Being the application money received )
	Equity Share application A/c	Dr.		1,80,000
	To Equity share capital A/c				1,50,000
	To Cash A/c				30,000
	(Being application money transferred to equity share capital )
	Equity Share allotment A/c	Dr		2,50,000
	To Share capital A/c				1,00,000
	To Equity Share premium A/c				1,50,000
	(Being the allotment money due )
	Cash A/c	Dr		2,50,000
	To Equity Share allotment A/c				2,50,000
	(Being application money transferred to equity share capital )
	Share first and final call A/c	Dr.		1,50,000
	To Share capital A/c				1,50,000
	(Being the first call money due )
	Cash A/c	Dr.		1,49,700
	Calls in arrear A/c	Dr.		300
	To Share first and final call A/c				1,50,000
	(Being first and final call money received )

(NOTE: the company didn’t make the first and final call )

Dr.	Cash Book						Cr.
Date	Particulars	L.F.	Amount	Date	Particulars	L.F.	Amount
	To equity share application a/c		1,80,000		By application a/c		30,000
	To equity share allotment a/c		85,000
	To equity share premium a/c		1,50,000
	To equity share first, call a/c		1,49,700
					By Balance C/d		5,49,700
			5,79,700				5,79,700

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)	5,49,700
		5,49,700

Equity share capital A/c		Cr.
Particulars	Particulars	Amount
Share capital
Authorized capital
1,00,000 Equity share of Rs 10 each		10,00,000
Issued capital
50,000 equity shares of Rs 10 each		5,00,000
Subscribed capital
Subscribed and fully paid-up
50,000 Equity shares of Rs 10 each
On application (50,000 *Rs 3 each )	1,50,000
On allotment (50,000 *Rs 2 each + premium Rs 3 )	2,50,000
On first call (50,000 *Rs 3 each )	1,50,000
Less: calls in arrear (100 shares *Rs 3 each )	(300)	5,49,700
share capital (subscribed)		5,49,700