21. Sarita Limited issued 2,000 shares of ? 100 each to the public payable as ? 2009
application, 240 on allotment and * 40 on first and final call. Applications were received for
2,500 shares. Surplus of application money was utilised for allotment. All the amounts due
were duly received. Pass Journal entries in the books of Sarita Ltd.
[Ans. Total of Journal * 4,10,000]
(B.S.E.B., 2012plzz give me a full solution
Answers
Answer:
Explanation:
ANSWER
Date
Particulars
L.F.
Debit (Rs.)
Credit (Rs.)
Bank A/c Dr.
24,00,000
To Share Application A/c
24,00,000
(Being application money received on 1,20,000 shares)
Share Application A/c Dr.
24,00,000
To Share Capital A/c
12,00,000
To Securities Premium A/c
4,00,000
To Share Allotment A/c
4,00,000
To Bank A/c
4,00,000
(Being application money adjusted and excess money on 20,000 shares refunded)
Share Allotment A/c Dr.
12,00,000
To Share Capital A/c
8,00,000
To Securities Premium A/c
4,00,000
(Being allotment due on 80,000 shares)
Bank A/c Dr.
7,60,000
Calls in Arrears A/c Dr.
40,000
To Share Allotment A/c
8,00,000
(Being allotment money received and excess money on application adjusted)
Share First Call A/c Dr.
12,00,000
To Share Capital A/c
12,00,000
(Being call money due)
Bank A/c Dr.
11,70,000
Calls in Arrears A/c Dr.
30,000
To Share First Call A/c
12,00,000
(Being first call money received)
Bank A/c Dr.
40,000
To Calls in Arrears A/c
40,000
(Being allotment money received on 4,000 shares)
Share Capital A/c Dr.
80,000
To Share Forfeiture A/c
50,000
To Calls in Arrears A/c
30,000
(Being Sahaj’s share forfeited)
Bank A/c Dr.
1,20,000
To Share Capital A/c
1,00,000
To Securities Premium A/c
20,000
(Being Sahaj’s shares reissued for Rs. 60 per share and Rs. 50 paid up)
Share Forfeiture A/c Dr.
50,000
To Capital Reserve A/c
50,000
(Being amount transferred on shares reissued)
Computation table
Categories
Shares Applied
Shares Allotted
Money received on Application @ Rs. 20
Money transferred to share capital @ Rs. 15
Money transferred to Securities Premium @ Rs. 5
Allotment due @ Rs. 15
Excess on application
Refund
I
20,000
Nil
4,00,000
4,00,000
II
1,00,000
80,000
20,00,000
12,00,000
4,00,000
12,00,000
4,00,000
1,20,000
80,000
24,00,000
12,00,000
4,00,000
12,00,000
4,00,000
4,00,000
Shares allotted
Shares applied
Excess on application
Seema’s shares (Category II)
4,000
5,000 (4,000 * 1,00,000/80,000)
20,000
Sahaj’s shares (Category II)
2,000 (2,500 * 80,000/1,00,000)
2,500
Concept:
Share Application Money Pending Allotment-
Share Application Funding is Pending Allotment refers to the amount received on an application that has not yet been allotted (pending allotment).
Given:
- Shares issued-2000
- Shares Applied for - 2500
- Application money - 20
- allotment Money - 40
- First and final call-40
Find:
Pass journal entries
Solution:
Bank A/c Dr. 50000
To Share Application 50000
(Being application money received)
Share Application A/c Dr. 50000
To Share Capital 40000
To Share Allotment 10000
(Being application money trasferred to share capital account)
Share Allotment A/c Dr. 80000
To Share Capital A/c 80000
(Being share Allotment made)
Bank A/c Dr. 70000
To Share Allotment 70000
(Being Allotment money received)
Share first and final call A/c Dr. 80000
To Share Capital 80000
(Being first and final call made)
Bank A/c Dr. 80000
To Share first and final call 80000
(Being call money received)
Hence, by adding all debit items, the total of the journal is 410000.
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