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Accountancy · 2024 · 6 marks
CBSE 2024 · Region 1 · Set 1 · Q25
Qumtan Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each at a premium of ₹ 6 per share. The amount was payable as follows: On…
Qumtan Ltd. invited applications for issuing $\displaystyle 1,00,000$ equity shares of ₹ $\displaystyle 10$ each at a premium of ₹ $\displaystyle 6$ per share. The amount was payable as follows : On Application and Allotment ₹ $\displaystyle 8$ per share (including premium ₹ $\displaystyle 3$) On First and Final call Balance (including premium) Applications for $\displaystyle 1,60,000$ shares were received. Applications for $\displaystyle 10,000$ shares were rejected and pro-rata allotment was made to the remaining applicants. Excess money received on application and allotment was returned. Dheeraj, who was allotted $\displaystyle 200$ shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were reissued at ₹ $\displaystyle 5$ per share fully paid up. Pass necessary journal entries in the books of Qumtan Ltd.
Printkit Limited invited applications for issue of $\displaystyle 80,000$ equity shares of ₹ $\displaystyle 10$ each. The amount was payable as follows : On Application ₹ $\displaystyle 3$ per share On Allotment ₹ $\displaystyle 2$ per share On First and Final call Balance Applications for $\displaystyle 1,50,000$ shares were received. Applications for $\displaystyle 10,000$ shares were rejected and pro-rata allotment was made to the remaining applicants on the following basis : Category A Applicants for $\displaystyle 80,000$ shares were allotted $\displaystyle 40,000$ shares. Category B Applicants for $\displaystyle 60,000$ shares were allotted $\displaystyle 40,000$ shares. Excess money received on application was adjusted towards amount due on allotment and first and final call. All the amounts due on allotment and first and final call were duly received. Pass necessary journal entries in the books of Printkit Limited.
Marking-scheme solution
In the Books of Qumtan Ltd.
JOURNAL
Date Particulars L.F Dr. Cr. Amount
Amount
(₹)
(₹)
(i)
Bank A/c Dr. $\displaystyle 12,80,000$
To Equity Share Application and $\displaystyle 12,80,000$
Allotment A/c
(Application and allotment money received on
$\displaystyle 1,60,000$ shares)
________________________________
(ii)
Equity Share Application and
Allotment A/c Dr.
$\displaystyle 12,80,000$
To Equity Share Capital A/c
$\displaystyle 5,00,000$
To Securities Premium A/c
$\displaystyle 3,00,000$
To Bank A/c
$\displaystyle 4,80,000$
(Application money transferred to Share Capital
and Securities Premium; excess amount returned)
________________________________
(v)
Equity Share First & Final Call A/c Dr.
$\displaystyle 8,00,000$
To Equity Share Capital A/c
$\displaystyle 5,00,000$
To Securities Premium A/c
$\displaystyle 3,00,000$
(Share First & Final Call money due)
________________________________
(vi)
Bank A/c Dr.
$\displaystyle 7,98,400$
Calls- in- Arrears A/c Dr.
$\displaystyle 1,600$
To Equity Share First & Final Call A/c
$\displaystyle 8,00,000$
(Share first and final call money received except
on $\displaystyle 200$ shares)
Alternatively
$\displaystyle 7,98,400$
Bank A/c Dr.
$\displaystyle 7,98,400$
To Equity Share First & Final Call A/c
(Share first and final call money received except
on $\displaystyle 200$ shares)
________________________________________
(vii)
Equity Share Capital A/c Dr. $\displaystyle 2,000$
Securities Premium A/c Dr. $\displaystyle 600$
To Calls- in- Arrears A/c $\displaystyle 1,600$
To Share Forfeiture A/c $\displaystyle 1,000$
($\displaystyle 200$ equity shares forfeited for non-payment of
first and final call)
Alternatively
Equity Share Capital A/c Dr.
$\displaystyle 2,000$
Securities Premium A/c Dr.
$\displaystyle 600$
To Equity Share First and Final Call A/c
$\displaystyle 1,600$
To Share Forfeiture A/c
$\displaystyle 1,000$
($\displaystyle 200$ equity shares forfeited for non-payment of
first and final call)
_____________________________________
(viii)
$\displaystyle 1,000$
Bank A/c Dr.
$\displaystyle 1,000$
Share Forfeiture A/c Dr.
$\displaystyle 2,000$
To Equity Share Capital A/c
($\displaystyle 200$ forfeited shares reissued)
Printkit Limited invited applications…..
Ans
In the books of Printkit Limited
JOURNAL
Date Particulars L.F Dr. Amount Cr. Amount
(₹) (₹)
(i)
Bank A/c Dr. $\displaystyle 4,50,000$
To Equity Share Application A/c $\displaystyle 4,50,000$
(Application money received on $\displaystyle 1,50$,000shares)
___________________________________
(ii)
Equity Share Application A/c Dr. $\displaystyle 4,50,000$
To Equity Share Capital A/c $\displaystyle 2,40,000$
To Equity Share Allotment A/c $\displaystyle 1,40,000$
To Calls-in- Advance A/c $\displaystyle 40,000$
To Bank A/c $\displaystyle 30,000$
(Application money transferred to Share Capital
and excess amount adjusted to Share Allotment
A/c and calls-in-advance; application money on
$\displaystyle 10,000$ shares refunded)
________________________________
(iii)
$\displaystyle 1,60,000$
Equity Share Allotment A/c Dr.
$\displaystyle 1,60,000$
To Equity Share Capital A/c
(Allotment money due on $\displaystyle 80,000$ shares)
________________________________
(iv)
Bank A/c Dr. $\displaystyle 20,000$
To Equity Share Allotment A/c $\displaystyle 20,000$
(Allotment money received after adjusting
excess application money)
___________________________________
(v)
Equity Share First & Final Call A/c Dr.
$\displaystyle 4,00,000$
To Equity Share Capital A/c
$\displaystyle 4,00,000$
(Share First & Final Call money due)
___________________________________
(vi)
Bank A/c Dr.
$\displaystyle 3,60,000$
Calls- in- Advance A/c Dr.
$\displaystyle 40,000$
To Equity Share First & Final Call A/c
$\displaystyle 4,00,000$
(Share first and final call money received after
adjusting calls- in- advance)
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