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Accountancy · 2023 · 6 marks
CBSE 2023 · Region 2 · Set 1 · Q25
Garda Ltd. invited applications for issuing 10,000 equity shares of ₹ 10 each. The amount per share was payable as follows: ₹ 2 on application, ₹ 3…
Garda Ltd. invited applications for issuing $\displaystyle 10,000$ equity shares of ₹ $\displaystyle 10$ each. The amount per share was payable as follows : ₹ $\displaystyle 2$ on application, ₹ $\displaystyle 3$ on allotment, ₹ $\displaystyle 3$ on first call and ₹ $\displaystyle 2$ on second and final call. Applications were received for $\displaystyle 15,000$ shares. The applications for $\displaystyle 3,000$ shares were rejected and application money refunded. The shares were allotted on pro-rata basis to the applicants of $\displaystyle 12,000$ shares. Excess money received with applications was adjusted towards sums due on allotment. All shareholders paid the allotment money except one shareholder who was allotted $\displaystyle 200$ shares. These shares were forfeited. The first call was made thereafter and duly received. The second and final call was not yet made. Pass Journal entries for the above transactions in the books of Garda Ltd. Open Calls-in-Arrears Account wherever required.
Mukund Ltd. invited applications for issuing $\displaystyle 50,000$ equity shares of ₹ $\displaystyle 10$ each at $\displaystyle 10$% premium. The amount per share was payable as follows : ₹ $\displaystyle 3$ on application, ₹ $\displaystyle 3$ (including premium) on allotment and balance amount on first and final call. Applications were received for $\displaystyle 1,20,000$ shares and shares were allotted on pro-rata basis to all the applicants. The excess money received on application was adjusted towards sums due on allotment only. Application money in excess to sums due on allotment was refunded. A shareholder who had applied for $\displaystyle 6,000$ shares, could not pay the call money and his shares were forfeited. Pass necessary Journal entries for the above transactions in the books of Mukund Ltd.
Marking-scheme solution
(a)
Books of Ganga Ltd.
Journal
L Debit Credit
.
Date Particulars Amount Amount
F
(₹) (₹)
Bank A/c Dr $\displaystyle 30,000$
To Equity Share Application A/c $\displaystyle 30,000$
(Application money received on
$\displaystyle 15,000$ shares)
Equity Share Application A/c Dr $\displaystyle 30,000$
To Equity Share Capital A/c $\displaystyle 20,000$
To Equity Share Allotment A/c $\displaystyle 4,000$
To Bank A/c $\displaystyle 6,000$
(Application money transferred to
Equity share capital A/c, Excess
money received adjusted towards
allotment and money refunded on
rejected applications)
Equity Share Allotment A/c Dr $\displaystyle 30,000$
To Equity Share Capital A/c $\displaystyle 30,000$
(Amount due on allotment)
Bank A/c Dr $\displaystyle 25,480$
Calls in Arrears A/c Dr $\displaystyle 520$
To Equity Share Allotment A/c $\displaystyle 26,000$
(Allotment money received except
that on $\displaystyle 200$ shares)
Equity Share Capital A/c Dr $\displaystyle 1,000$
To Calls in Arrears A/c $\displaystyle 520$
To Forfeited Shares A/c $\displaystyle 480$
(Forfeiture of $\displaystyle 200$ shares for non
payment of allotment money)
Equity Share First Call A/c Dr $\displaystyle 29,400$
To Equity Share Capital A/c $\displaystyle 29,400$
(Money due on $\displaystyle 9,800$ shares on First
Call)
Bank A/c Dr $\displaystyle 29,400$
To Equity Share first call A/c $\displaystyle 29,400$
(Money received on First Call)
Or
Q. (b) Mukund Ltd. Invited………………………………..
Ans. (b) Books of Mukund Ltd.
Journal
L.F Debit Credit
Date Particulars Amount Amount
(₹) (₹)
Bank A/c Dr $\displaystyle 3,60,000$
To Equity Share Application A/c $\displaystyle 3,60,000$
(Application money received on
$\displaystyle 1,20,000$ shares)
Equity Share Application A/c $\displaystyle 3,60,000$
To Equity Share Capital A/c $\displaystyle 1,50,000$
To Equity Share Allotment A/c $\displaystyle 1,50,000$
To Bank A/c $\displaystyle 60,000$
(Application money transferred to
Equity share capital A/c, Excess
money received adjusted towards
allotment and money refunded on
rejected applications)
Equity Share Allotment A/c Dr $\displaystyle 1,50,000$
To Equity Share Capital A/c $\displaystyle 1,00,000$
To Securities Premium A/c/ $\displaystyle 50,000$
Securities Premium Reserve A/c
(Amount due on allotment @ ₹$\displaystyle 3$ per
share including premium)
Bank A/c Dr nil
To Equity Share Allotment A/c nil
Equity Share first and final Call A/c Dr $\displaystyle 2,50,000$
To Equity Share Capital A/c $\displaystyle 2,50,000$
(Amount due on first and final call
@₹$\displaystyle 5$ per share.)
Bank A/c Dr $\displaystyle 2,37,500$
To Equity Share first and final $\displaystyle 2,37,500$
Call A/c
(First and final call money received
except that of $\displaystyle 2,500$ shares)
Or
Bank A/c Dr $\displaystyle 2,37,500$
Calls in Arrears A/c Dr $\displaystyle 12,500$
To Equity Share first and final $\displaystyle 2,50,000$
Call A/c
(First and final call money received
except that of $\displaystyle 2,500$ shares)
Equity Share Capital A/c Dr $\displaystyle 25,000$
To Equity Share first and $\displaystyle 12,500$
final Call A/c
To Forfeited Shares A/c $\displaystyle 12,500$
(Forfeiture of $\displaystyle 2500$ shares for non
payment of the first and final call)
Or
Equity Share Capital A/c Dr $\displaystyle 25,000$
To Calls in Arrears A/c $\displaystyle 12,500$
To Forfeited Shares A/c $\displaystyle 12,500$
(Forfeiture of $\displaystyle 2500$ shares for non
payment of the first and final call)
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CBSE Class 12 Accountancy past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.