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Accountancy · 2023 · 6 marks
CBSE 2023 · Region 3 · Set 2 · Q25
Lotus Ltd. invited applications for issuing 80,000 equity shares of ₹ 10 each at a premium of ₹ 4 per share. The amount was payable as follows: On…
Lotus Ltd. invited applications for issuing $\displaystyle 80,000$ equity shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 4$ per share. The amount was payable as follows : On application ₹ $\displaystyle 5$ per share and On allotment ₹ $\displaystyle 9$ per share (included premium). Applications were received for $\displaystyle 1,40,000$ shares and allotment was made to all applicants on pro - rata basis. Money overpaid on applications was adjusted towards sums due on allotment. Rajiv, who had applied for $\displaystyle 1,400$ shares, failed to pay the allotment money. His shares were forfeited. Later on, these forfeited shares were reissued at ₹ $\displaystyle 9$ per share as fully paid up. Pass necessary journal entries for the above transactions in the books of Lotus Ltd.
Tulip Ltd. invited applications for issuing $\displaystyle 2,40,000$ equity shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 4$ per share. The amount was payable as under : On application ₹ $\displaystyle 4$ per share (including premium ₹ $\displaystyle 2$) On allotment ₹ $\displaystyle 4$ per share On first and final call ₹ $\displaystyle 6$ per share (including premium ₹ $\displaystyle 2$) Applications for $\displaystyle 3,00,000$ shares were received and pro-rata allotment was made to all the applicants. Excess application money received with applications was adjusted towards sums due on allotment. All moneys were duly received except from Rohini who had applied for $\displaystyle 7,500$ shares, and failed to pay allotment and first and final call. Pass the necessary journal entries for the above transactions in the books of Tulip Ltd. Open Calls-in-arrears and Calls-in-advance account, wherever necessary.
Marking-scheme solution
Books of Lotus Ltd.
JOURNAL
Date Particulars LF Amount Amount
Dr (₹) Cr (₹)
(i)
Bank A/c Dr $\displaystyle 7,00,000$
To Equity Share Application A /c $\displaystyle 7,00,000$
(Application money received on $\displaystyle 1,40,000$
shares)
_________________________________
(ii)
Equity Share Application A/c Dr
$\displaystyle 7,00,000$
To Equity Share Capital A/c
$\displaystyle 4,00,000$
To Equity Share Allotment A/c
$\displaystyle 3,00,000$
(Application money transferred to Share
Capital and excess amount adjusted to
Share Allotment A/c)
_________________________________
(iii)
$\displaystyle 7,20,000$
Equity Share Allotment A/c Dr.
$\displaystyle 4,00,000$
To Equity Share Capital A/c
$\displaystyle 3,20,000$
To Securities Premium / Securities
Premium Reserve A/c
(Share allotment money due at premium)
_________________________________
(iv)
$\displaystyle 4,15,800$
Bank A/c Dr.
$\displaystyle 4,200$
Calls- in- Arrears A/c Dr.
$\displaystyle 4,20,000$
To Equity Share Allotment A/c
(Allotment money received except on $\displaystyle 800$
shares)
Alternatively
Bank A/c Dr. $\displaystyle 4,15,800$
To Equity Share Allotment A/c $\displaystyle 4,15,800$
(Allotment money received except on $\displaystyle 800$
shares)
_________________________________
(v)
Equity Share Capital A/c Dr. $\displaystyle 8,000$
Securities Premium / Securities
Premium Reserve A/c Dr. $\displaystyle 3,200$
To Calls-in –Arrears A/c $\displaystyle 4,200$
To Share Forfeiture A/c $\displaystyle 7,000$
($\displaystyle 800$ shares forfeited for non- payment of
allotment money)
Alternatively
Equity Share Capital A/c Dr.
$\displaystyle 8,000$
Securities Premium / Securities
Premium Reserve A/c Dr.
$\displaystyle 3,200$
To Equity Share Allotment A/c
$\displaystyle 4,200$
To Share Forfeiture A/c
$\displaystyle 7,000$
($\displaystyle 800$ shares forfeited for non- payment of
allotment money)
_________________________________
(vi)
Bank A/c Dr.
$\displaystyle 7,200$
Share Forfeiture A/c Dr.
$\displaystyle 800$
To Equity Share Capital A/c
$\displaystyle 8,000$
(Reissue of forfeited shares)
________________________________
(vii)
Share Forfeiture A/c Dr.
$\displaystyle 6,200$
To Capital Reserve A/c
$\displaystyle 6,200$
(Gain on reissue of shares transferred to
Capital Reserve)
Q. Tulip Ltd. invited applications for ……
Ans Books of Tulip Ltd.
JOURNAL
Date Particulars LF Amount Amount
Dr (₹) Cr (₹)
(i)
Bank A/c Dr. $\displaystyle 12,00,000$
To Equity Share Application A/c $\displaystyle 12,00,000$
(Application money received on $\displaystyle 3,00,000$
shares)
________________________________
(ii)
Equity Share Application A/c Dr.
$\displaystyle 12,00,000$
To Equity Share Capital A/c
$\displaystyle 4,80,000$
To Securities Premium A/c /
Securities Premium Reserve A/c
$\displaystyle 4,80,000$
To Equity Share Allotment A/c
$\displaystyle 2,40,000$
(Application money transferred to Share
Capital and Securities Premium; excess
amount adjusted to Share Allotment A/c)
________________________________
(iii)
$\displaystyle 9,60,000$
Equity Share Allotment A/c Dr.
$\displaystyle 9,60,000$
To Equity Share Capital A/c
(Allotment money due on $\displaystyle 2,40,000$
shares)
________________________________
(iv)
Bank A/c Dr $\displaystyle 7,02,000$
Calls- in Arrears A/c Dr $\displaystyle 18,000$
To Equity Share Allotment A/c $\displaystyle 7,20,000$
(Allotment money received)
________________________________
(v)
Equity Share First & Final Call A/c Dr $\displaystyle 14,40,000$
To Equity Share Capital A/c $\displaystyle 9,60,000$
To Securities Premium A/c /
Securities Premium Reserve A/c $\displaystyle 4,80,000$
(Share First & Final Call money due)
________________________________
(vi)
Bank A/c Dr. $\displaystyle 14,04,000$
Calls- in- Arrears A/c Dr. $\displaystyle 36,000$
To Equity Share First & Final Call A/c $\displaystyle 14,40,000$
(Share first and final call money received
except on $\displaystyle 6,000$ shares)
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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.