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Accountancy · 2024 · 6 marks
CBSE 2024 · Region 5 · Set 1 · Q23
Murari Ltd. invited applications for issuing 80,000 equity shares of ₹ 10 each at a premium of ₹ 4 per share. The amount per share was payable as…
Murari Ltd. invited applications for issuing $\displaystyle 80,000$ equity shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 4$ per share. The amount per share was payable as follows : ₹ $\displaystyle 5$ on application and ₹ $\displaystyle 9$ (including premium) on allotment. Applications were received for $\displaystyle 1,40,000$ shares and allotment was made on pro-rata basis to all the applicants. Money overpaid on application was utilised towards sums due on allotment. The allotment money was duly received except from Sameer who had applied for $\displaystyle 1,400$ shares. His shares were forfeited. Pass the necessary journal entries in the books of Murari Ltd. to record the above transactions. Open calls-in-arrears account wherever required.
Kavya Ltd. invited applications for issuing $\displaystyle 30,000$ shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 2$ per share. The amount was payable as follows : On application and allotment ₹ $\displaystyle 7$ per share On first and final call ₹ $\displaystyle 5$ per share (including ₹ $\displaystyle 2$ premium) Applications were received for $\displaystyle 33,000$ shares. Applications for $\displaystyle 3,000$ shares were rejected and money returned to the applicants. Applications for $\displaystyle 30,000$ shares were accepted in full. The application and allotment money was duly received. The first and final call was made and money received except from a shareholder holding $\displaystyle 500$ shares. His shares were forfeited. All these shares were re-issued to Kartik as fully paid for ₹ $\displaystyle 8$ per share. Pass necessary journal entries for the above transactions in the books of Kavya Ltd. Open calls-in-arrears account wherever required.
Marking-scheme solution
Books of Murari Ltd.
Journal
Date Particulars LF Dr. Cr.
Amount Amount
(₹) (₹)
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)
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 account
and share allotment account)
Equity Share Allotment A/c Dr. $\displaystyle 7,20,000$
To Equity Share Capital A/c $\displaystyle 4,00,000$
To Securities Premium A/c $\displaystyle 3,20,000$
( Amount due on allotment)
Bank A/c Dr. $\displaystyle 4,15,800$
Calls in arrears A/c Dr. $\displaystyle 4,200$
To Equity Share allotment A/c $\displaystyle 4,20,000$
(Allotment money received except on $\displaystyle 800$ shares)
Equity Share Capital A/c Dr. $\displaystyle 8,000$
Securities Premium A/c Dr. $\displaystyle 3,200$
To Share forfeiture A/c $\displaystyle 7,000$
To Calls in arrears A/c $\displaystyle 4,200$
($\displaystyle 800$ shares forfeited for non payment of allotment
money)
Q. (b) Kavya Ltd. invited applications ………
Ans.
Books of Kavya Ltd.
Journal
Date Particulars LF Dr. Cr.
Amount Amount
(₹) (₹)
Bank A/c Dr. $\displaystyle 2,31,000$
To Share Application and Allotment A/c $\displaystyle 2,31,000$
(Application money received on $\displaystyle 33,000$ shares)
Share Application and Allotment A/c Dr. $\displaystyle 2,31,000$
To Share Capital A/c $\displaystyle 2,10,000$
To Bank A/c $\displaystyle 21,000$
(Application money transferred to share capital
account and balance refunded)
Share First and final call A/c Dr. $\displaystyle 1,50,000$
To Equity Share Capital A/c $\displaystyle 90,000$
To Securities Premium A/c $\displaystyle 60,000$
( Amount due on first and final call)
Bank A/c Dr. $\displaystyle 1,47,500$
Calls in arrears A/c Dr. $\displaystyle 2,500$
To Share First and final call A/c $\displaystyle 1,50,000$
(First and final call received except on $\displaystyle 500$ shares)
Share Capital A/c Dr. $\displaystyle 5,000$
Securities Premium A/c Dr. $\displaystyle 1,000$
To Share forfeiture A/c $\displaystyle 3,500$
To Calls in arrears A/c $\displaystyle 2,500$
($\displaystyle 500$ shares forfeited for non payment of first and final
call)
Bank A/c Dr. $\displaystyle 4,000$
Share forfeiture A/c Dr. $\displaystyle 1,000$
To Share Capital A/c $\displaystyle 5,000$
(Forfeited shares reissued as fully paid for ₹$\displaystyle 8$ per
share)
Share Forfeiture A/c Dr. $\displaystyle 2,500$
To Capital Reserve A/c $\displaystyle 2,500$
(Gain on reissue of forfeited shares transferred to
Capital Reserve A/c)
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