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Accountancy · 2023 · 6 marks
CBSE 2023 · Region 4 · Set 3 · Q26
Yash Ltd. invited applications for 50,000 equity shares of ₹ 10 each at a premium of 10%. The amount was payable as follows: On application ₹ 3 per…
Yash Ltd. invited applications for $\displaystyle 50,000$ equity shares of ₹ $\displaystyle 10$ each at a premium of $\displaystyle 10$%. The amount was payable as follows : On application ₹ $\displaystyle 3$ per share; on allotment (including premium) ₹ $\displaystyle 3$ per share and on first and final call, the balance amount. Applications were received for $\displaystyle 1,20,000$ shares and shares were allotted on pro - rata basis to all applicants. The excess money received on application was to be adjusted towards sums due on allotment. Application money in excess of sums due on allotment was refunded. A shareholder who applied for $\displaystyle 6,000$ shares could not pay the first and final call money and his shares were forfeited. The forfeited shares were reissued for ₹ $\displaystyle 60,000$ fully paid up. Pass necessary journal entries for the above transactions in the books of Yash Ltd.
Ajanta Ltd. issued a prospectus inviting applications for issuing $\displaystyle 5,00,000$ equity shares of ₹ $\displaystyle 10$ each issued at a premium of $\displaystyle 10$%. The amount was payable as follows : On application ₹ $\displaystyle 3$ per share On allotment (including premium) ₹ $\displaystyle 5$ per share On first and final call ₹ $\displaystyle 3$ per share Applications were received for $\displaystyle 6,00,000$ shares and pro - rata allotment was made to all applicants. Excess money received on application was adjusted towards sums due on allotment. All amounts were duly received except from Sumit, who was the holder of $\displaystyle 1,000$ shares, and failed to pay the allotment and first and final call. His shares were forfeited. Pass journal entries for the above transactions in the books of Ajanta Ltd. Open calls-in-arrears account wherever necessary.
Marking-scheme solution
Books of Yash Ltd.
Journal
Date Particulars L.F Dr. Amount Cr. 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 Dr. $\displaystyle 3,60,000$
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 share
capital A/c , to share allotment A/c and
refunded)
Equity Share Allotment A/c Dr. $\displaystyle 1,50,000$
To Equity Share Capital A/c $\displaystyle 1,00,000$
To Securities Premium / $\displaystyle 50,000$
Securities Premium Reserve A/c
( Amount due on allotment)
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 call)
Bank A/c Dr. $\displaystyle 2,37,500$
Calls in arrears A/c Dr. $\displaystyle 12,500$
To Equity Share First call A/c $\displaystyle 2,50,000$
(First call money received , except on $\displaystyle 2500$
shares )
Equity Share Capital Dr. $\displaystyle 25,000$
To Share forfeiture A/c $\displaystyle 12,500$
To Calls in arrears A/c $\displaystyle 12,500$
( $\displaystyle 2500$ shares forfeited for non payment of
first and final call)
Alternatively,
Equity Share Capital Dr. $\displaystyle 25,000$
To Equity Share forfeiture A/c $\displaystyle 12,500$
To Equity Share First and Final Call A/c $\displaystyle 12,500$
($\displaystyle 2500$ shares forfeited for non payment of
first and final call)
Bank A/c Dr. $\displaystyle 60,000$
To Equity Share Capital A/c $\displaystyle 25,000$
To Securities Premium /Securities $\displaystyle 35,000$
Premium Reserve A/c
(Forfeited shares reissued for ₹$\displaystyle 60,000$, fully
paid up)
Share forfeiture A/c Dr. $\displaystyle 12,500$
To Capital reserve A/c $\displaystyle 12,500$
(Gain on reissue of forfeited shares
transferred to capital reserve A/c)
Q.(b) Ajanta ltd. issued prospectus inviting.........................................
Ans.
Books of Ajanta Ltd.
Journal
Date Particulars L.F Dr. Amount Cr. Amount
₹ ₹
Bank A/c Dr. $\displaystyle 18,00,000$
To Equity Share Application A/c $\displaystyle 18,00,000$
(Application money received on $\displaystyle 6,00,000$
shares)
Equity share application A/c Dr. $\displaystyle 18,00,000$
To Equity Share Capital A/c $\displaystyle 15,00,000$
To Equity Share Allotment A/c $\displaystyle 3,00,000$
(Application money transferred to share
capital A/c , excess money received
adjusted towards allotment )
Equity share Allotment A/c Dr. $\displaystyle 25,00,000$
To Equity Share Capital $\displaystyle 20,00,000$
To Securities Premium / $\displaystyle 5,00,000$
Securities Premium Reserve A/c
( Amount due on allotment)
Bank A/c Dr. $\displaystyle 21,95,600$
Calls in arrears A/c Dr. $\displaystyle 4,400$
To Equity Share allotment A/c $\displaystyle 22,00,000$
( Allotment money received, except on
$\displaystyle 1000$ shares)
Equity Share First and Final call A/c Dr. $\displaystyle 15,00,000$
To Equity share Capital A/C $\displaystyle 15,00,000$
( Amount due on First and final call)
Bank A/c Dr. $\displaystyle 14,97,000$
Calls in arrears A/c Dr. $\displaystyle 3,000$
To Equity Share First call A/c $\displaystyle 15,00,000$
(First call money received, except on $\displaystyle 1000$
shares )
Equity share capital Dr. $\displaystyle 10,000$
Securities Premium /
Securities Premium Reserve A/c Dr. $\displaystyle 1,000$
To Share forfeiture A/c $\displaystyle 3,600$
To Calls in arrears A/c $\displaystyle 7,400$
( $\displaystyle 1000$ shares forfeited for non-payment of
allotment and first call)
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