Question 82 Chapter 8 of +2-A - T.S. Grewal 12 Class

Question 82 Chapter 8 of +2-A

Table of Contents

The solution of Question 82 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)

82. XYZ Ltd . is registered with an authorised capital of ₹ 2,00,000 divided into 2,000 shares of ₹ 100 each of which, 1,000 shares were offered for public subscription at a premium of ₹ 5 per share, payable as:

On application	—	₹ 10 per share,
On allotment	—	₹ 25 per share (including premium),
On the first call	—	₹ 40 per share
On final call	—	₹ 30 per share

Applications were received for 1,800 shares, of which applications for 300 shares were rejected outright; the rest of the application were allotted 1,000 shares on a pro-rata basis. Excess application money was transferred to the allotment.
All the money was duly received except from Sundar, holder of 100 shares, who failed to pay allotment and first call money. His shares were later forfeited and reissued to Shyam at ₹ 60 per share ₹ 70 paid-up. A final call has not been made.
Pass necessary Journal entries and prepare Cash Book in the books of XYZ Limited.

The solution of Question 82 Chapter 8 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Share application A/c	Dr		15,000
	To Share capital A/c				10,000
	To Share allotment A/c				5,000
	(Being application money transferred to equity share capital )
	Share allotment A/c	Dr		25,000
	To Share capital A/c				20,000
	To Securities premium A/c				5,000
	(Being the allotment money due )
	Share first and final call A/c	Dr		40,000
	To Share capital A/c				40,000
	(Being first call due )
	Securities premium A/c	Dr		500
	Equity share capital A/c	Dr		7,000
	To Equity share forfeiture A/c				1,500
	To Share allotment A/c				2,000
	To Share first call A/c				4,000
	(Being the share forfeited )
	Share forfeiture A/c	Dr		500
	To capital Reserve A/c				500
	(Being the gain on reissue transferred to capital reserve )

Date	Particulars	J.F.	Bank	Date	Particulars	J.F.	Bank
	To equity share application a/c		18,000		By equity share application a/c		3,000
	To equity share allotment a/c		18,000
	To equity share first, call a/c		36,000
	To equity share capital a/c		6,000		By Balance C/d		75,000
			78,000				78,000

Working notes –

Number of Shares applied by sunder	=	1,500	* 1,000	=	150 shares
		1,000

On Account of sunder	1,500
Money received on application (150 * Rs 10)	(1,000)
Excess Money on application	500

Share allotment due (100 * Rs 25)	2,500
Less; Excess Money on application	(500)
Calls – in-Arrears application	2,000

Allotment
Allotment due on all shares 1,000 * Rs 25	25,000
Less; Adjustment of excess money on application	(5,000)
Less; calls –in- Arrears by Sunder	(2,000)
Money received on the allotment	18000