Question 92 Chapter 8 of +2-A
92. The Directors of Super Star Ltd. invited applications for 2,00,000 Equity Shares of ₹ 10 each to be issued at 20% premium. The money payable per shares was: on application ₹ 5, on allotment ₹ 4 (including premium of ₹ 2), first call ₹ 2 and final call ₹ 1.
Applications were received for 2,40,000 shares and allotment was made as:
(i) to applicants for 1,00,000 shares—— in full,
(ii) to applicants for 80,000 shares——60,000 shares,
(iii) to applicants for 60,000 shares——40,000 shares.
Applicants of 1,000 shares falling in Category
(i) and applicants of 1,200 shares falling in Category
(ii) failed to pay allotment money. These shares were forfeited on failure to pay first call. Holders of 1,200 shares falling in Category
(iii) failed to pay the first and final call and these shares were forfeited after final call.
1,300 shares[1,000 of Category(i) and 300 of Category (ii)] were reissued at ₹ 8 per share as fully paid-up. Journalise the above transactions. Prepare Cash book and Balance Sheet.
The solution of Question 92 Chapter 8 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| Share application A/c | Dr | 12,00,000 | |||
| To Share capital A/c | 10,00,000 | ||||
| To share allotment A/c | 2,00,000 | ||||
| (Being application money transferred to equity share capital ) | |||||
| Share allotment A/c | Dr | 8,00,000 | |||
| To Share capital A/c | 4,00,000 | ||||
| To Securities premium A/c | 4,00,000 | ||||
| (Being the allotment money due ) | |||||
| (Being share forfeited ) | |||||
| Share first call A/c | Dr | 4,00,000 | |||
| To Share capital A/c | 4,00,000 | ||||
| (Being the first call money due ) | |||||
| Bank A/c | Dr | 3,92,000 | |||
| To Share first call A/c | 3,92,000 | ||||
| (Being first call money received ) | |||||
| Share capital A/c | Dr | 9,000 | |||
| Securities premium A/c | Dr | 2,000 | |||
| To share forfeiture A/c | 5,000 | ||||
| To share allotment A/c | 4,000 | ||||
| To share first call A/c | 2,000 | ||||
| (Being share forfeited ) | |||||
| Share capital A/c | Dr | 8,100 | |||
| Securities premium A/c | Dr | 1,800 | |||
| To share forfeiture A/c | 6,000 | ||||
| To share allotment A/c | 2,100 | ||||
| To share first call A/c | 1,800 | ||||
| (Being share forfeited ) | |||||
| Share final call A/c | Dr | 1,98,100 | |||
| To Share capital A/c | 1,98,100 | ||||
| (Being the final call money due ) | |||||
| Share capital A/c | Dr | 12,000 | |||
| To share forfeiture A/c | 8,400 | ||||
| To share first call A/c | 2,400 | ||||
| To share final call A/c | 1,200 | ||||
| (Being share forfeited ) | |||||
| Share Forfeiture A/c | Dr | 2,000 | |||
| To share capital A/c | 2,000 | ||||
| (Being forfeited share reissue ) | |||||
| Share Forfeiture A/c | Dr | 600 | |||
| To share capital A/c | 600 | ||||
| (Being forfeited share reissue ) | |||||
| Share forfeiture A/c | Dr | 4,400 | |||
| To capital Reserve A/c | 4,400 | ||||
| (Being the gain on reissue transferred to capital reserve ) | |||||
Working notes –
| No of share allotted | = | 60,000 | * 1,200 | = | 900 shares |
| 80,000 |
| Amount not paid by Aditya on Allotment | Amount |
| Money received on application(4,000 shares * Rs 3) | 6,000 |
| Less: Application money transferred to share capital (3,000 * Rs 3) | (4,500) |
| Excess received on the application | 1,500 |
| Amount | |
| Share Allotment due | 3,600 |
| Less: Excess money on application | (1500) |
| Money received on the allotment | 2,100 |
| Amount | |
| Money due an allotment (2,00,000 *Rs 5 ) | 10,00,000 |
| Less: excess money on application | (2,00,000) |
| Less : calls in arrear on share (i) & (ii) category | (6,100) |
| Money received on Allotment | 5,93,900 |
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| Capital reserve | Amount |
| Share forfeiture Cr. | 5,000 |
| Less: share forfeiture Dr. | (2,000) |
| Capital reserve of 1,000 share (category i) | 3,000 |
| Capital reserve | Amount |
| Share forfeiture Cr. | 2100 |
| Less: share forfeiture Dr. | (600) |
| Capital reserve of share ( category ii ) | 1400 |
Total Capital Reserve on 3,500 shares = Re-issued shares of category (i) + Re-issued shares of category (ii )= 3,000 + 1400 = Rs.4,400
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Also, Check out the solved question of previous Chapters: –
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
