Question 72 Chapter 8 of +2-A
72. Krishna & Co. Ltd. with an authorized capital of ₹ 2,00,000 divided into 20,000 Equity Shares of ₹ 10 each, issued the entire amount of the shares payable as:.
| ₹ 5 on application (including premium ₹ 2 per share |
| ₹ 4 on an allotment, and |
| ₹ 3 on call. |
All share money is received in full with the exception of the allotment money on 200 shares and the call money on 500 shares (including the 200 shares on which the allotment money has not been paid). The above 500 shares are duly forfeited and 400 of these( including the 200 shares on which allotment money has not been paid) are reissued at ₹ 7 per share payable by the purchaser as fully paid-up. Pass journal entries(including cash transactions) and show the balances in the Balance Sheet giving effect to the above transactions.
The solution of Question 72 Chapter 8 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| Bank A/c | Dr | 1,00,000 | |||
| To share application A/c | 1,00,000 | ||||
| (Being the application money received ) | |||||
| Share application A/c | Dr | 1,00,000 | |||
| To Share capital A/c | 60,000 | ||||
| To Securities premium A/c | 40,000 | ||||
| (Being application money transferred to equity share capital ) | |||||
| Share allotment A/c | Dr | 80,000 | |||
| To Share capital A/c | 80,000 | ||||
| (Being the allotment money due ) | |||||
| Bank A/c | Dr | 79,200 | |||
| calls in arrear A/c | Dr | 800 | |||
| To Share allotment A/c | 800 | ||||
| (Being allotment money transferred to equity share capital ) | |||||
| Share first call A/c | Dr | 60,000 | |||
| To Share capital A/c | 60,000 | ||||
| (Being the first call money due ) | |||||
| Bank A/c | Dr | 58,500 | |||
| Calls in arrear A/c | Dr | 1,500 | |||
| To Share first call A/c | 60,000 | ||||
| (Being first call money received ) | |||||
| Equity share capital A/c | Dr | 2,000 | |||
| To Share forfeiture A/c | 600 | ||||
| To calls in arrear A/c | 1,400 | ||||
| (Being the gain on reissue transferred to capital reserve ) | |||||
| Equity share capital A/c | Dr | 3,000 | |||
| To Share forfeiture A/c | 2,100 | ||||
| To calls in arrear A/c | 900 | ||||
| (Being share forfeiture) | |||||
| Bank A/c | Dr | 2,800 | |||
| Share forfeiture A/c | Dr | 1,200 | |||
| To capital Reserve A/c | 4,000 | ||||
| (Being forfeited share reissue ) | |||||
| Share forfeiture A/c | |||||
| To capital Reserve A/c | |||||
| (Being the gain on reissue transferred to capital reserve ) | |||||
|
Particulars (1) |
Note no. (2) |
Figures as at the end of the Current Reporting Period (3) |
Figures as at the end of the Previous Reporting Period (4) |
| I. Equity and Liabilities | |||
| 1. Shareholders’ Funds | |||
| (a) Share Capital | 1,99,700 | ||
| (b) Reserves and Surplus | 40,800 | ||
| (c) Money Received against Share Warrants | |||
| 2. Share Application Money Pending Allotment | |||
| 3. Non-Current Liabilities | |||
| 4. Current Liabilities | |||
| II. Assets | |||
| 1.Non-Current Assets | |||
| (a) Fixed Assets | |||
| Tangible Assets | (-) | ||
| 2. Current Assets | |||
| (d) Cash and Cash equivalents | 2,40,500 | ||
| Total | 1,69,500 |
| Particulars |
Details |
Amount |
| Share capital | ||
| Authorized capital | ||
| 2,000 Equity share of Rs 100 each | 2,00,000 |
|
| Issued capital | ||
| 20,000 equity shares of Rs 100 each | 2,00,000 | |
| Subscribed capital | ||
| Subscribed and fully paid-up | ||
| 19,960 Equity shares of Rs10 every 8,000 shares of 5 called up- calls in arrear (700) | 1,99,780 | |
| Capital reserve | 40,000 | |
| Securities premium | 800 |
|
| Cash at bank | 2,40,500 |
| Capital Reserve of 200 shares on which only application received | |||
| Details | Amount | ||
| Amount received on application(5,000 * 3) | 300 | ||
| Less: Share forfeiture dr. per share | (300) | ||
| Amount received on the application | 0 | ||
| Share forfeiture of re-issued share |
|||
| Particulars |
Details | Amount | |
| Share Forfeiture (Dr.) ( at the time of forfeiture of 200 shares ) | 400 | ||
| Less: Share Forfeiture (Cr) ( at the time re-issue of 160 shares) | (320) | ||
| Amount unpaid on application | 80 | ||
Capital Reserve=200 Shares × Balance of Share Forfeiture Cr. per share
Capital Reserve=200 × Rs.4 = Rs.800
Please Like and share with your friends
Comment if you have any question.
Also, Check out the solved question of previous Chapters: –
Advertisement-X
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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
