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Question 18 Chapter 8 of +2-Part-1
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18. (Expenses on Issue) Hemant Textiles Ltd. having a nominal capital of Rs. 10,00,000 in shares of Rs. 100 each invited applications for 5,000 shares payable as follows :
On application Rs. 20
On allotment Rs. 25
On first call Rs. 25
On second and final call Rs. 30
All the shares were subscribed and allotment made. All the money was received except final call on 100 shares. Expenses of issue came to 10,000. They are to be written off in the same year. Pass journal entries in the books of company.
The solution of Question 18 Chapter 8 of +2 Part-1: –
Journal | |||||
Date | Particulars | L.F. | Debit | Credit | |
a) | Bank A/c (5,000 X 20) | Dr. | 1,00,000 | ||
To Share Application A/c | 1,00,000 | ||||
(Being application money received) | |||||
b) | Share Application A/c | Dr. | 1,00,000 | ||
To Share capital A/c (5,000 X 20) | 1,00,000 | ||||
(Being application money transferred to Share cap. A/c) | |||||
c) | Share Allotment A/c (5,000 X 25) | Dr. | 1,25,000 | ||
To Share capital A/c | 1,25,000 | ||||
(Being allotment money due on 5,000 share @ 25 per shares) | |||||
d) | Bank A/c (5,000 X 25) | Dr. | 1,25,000 | ||
To Share allotment A/c | 1,25,000 | ||||
(Being allotment money received on 5,000 share @ 25 as per shares) | |||||
e) | Share first Call A/c (5,000 X 25) | Dr. | 1,25,000 | ||
To Share capital A/c | 1,25,000 | ||||
(Being first call money due on 5,000 share @ 25 per shares) | |||||
f) | Bank A/c (5,000 X 25) | Dr. | 1,25,000 | ||
To Share first Call A/c | 1,25,000 | ||||
(Being first call money received on 5,000 share @ 25 per shares) | |||||
g) | Share second & final Call A/c (5,000 X 30) | Dr. | 1,50,000 | ||
To Share capital A/c | 1,50,000 | ||||
(Being final call money due on 5,000 share @ 30 per shares) | |||||
h) | Bank A/c (5,000 X 30) | Dr. | 1,47,000 | ||
Calls in arrear A/c | Dr. | 3,000 | |||
To Share second & final Call A/c | 1,47,000 | ||||
(Being second & final call money received on 5,000 share @ 30 per shares) | |||||
i) | Share Issue Expense A/c | Dr. | 10,000 | ||
To Bank A/c | 10,000 | ||||
(Being share issue expenses paid ) | |||||
j) | Profit & Loss A/c | Dr. | 2,000 | ||
To Share Issue Expense A/c | 2,000 | ||||
(Being one fifth of the expenses written off ) | |||||
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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