A company was formed with a capital of rs 1500000 in share of rs 10 each. It offered to the public 100000 shares payable rs 1 per share on application, rs 2 per shares on allotment and rs 3 per share on first call. The balance of rs 4 per share to be called only in case of necessity. Applications were received for 90000 shares and the shares were according allotted. All the money was duly received with the exception of allotment money on 200 shares and first call on 500 shares. Journalists the transaction and prepare the balance sheet.
Answers
GIVEN: 100000 shares issued of Rs.10 payable in installments
TO FIND: Journal Entries
SOLUTION:
According to the question,
100000 shares are issued of Rs.10 and payable as:
Application Rs.1
Allotment Rs.2
First Call Rs.3
Second and Final Call Rs.4
The Journal Entries will be as follows,
Bank A/c -----dr 90000
To share Application ac 90000
Share Application ac ----dr 90000
To Equity Share Capital ac 90000
Share Allotment ac ----dr 180000
To Equity Share Capital ac 180000
Bank A/c -----dr 176000
Calls in Arrears A/c -----dr 4000
To share Allotment ac 180000
Share First Call A/c ----dr 270000
To Equity Share Capital ac 270000
Bank A/c -----dr 2,68,500
Calls in Arrears A/c -----dr 1500
To share Allotment ac 270000
#SPJ1
Given:
authorised capital= Rs 1500000
issued capital= Rs 1000000
subscribed shares= 90000
application money= Rs 1
allotment money= Rs 2
first call money= Rs 3
money to be called when necessary= Rs 4
To find:
journal entries and Balance sheet.
Soution:
The necessary journal entries are as follows:
Bank a/c (90000*1) Dr. 90,000
To Equity share application A/c 90,000
(Being share application money received)
Equity share application A/c Dr. 90,000
To Equity share capital A/c (90000*1) 90,000
(Being adjustment of application money)
Equity share Allotment A/c (90000*2) Dr. 1,80,000
To Equity share capital A/c (90000*2) 1,80,000
(Being allotment money due)
Bank A/c Dr. 179600
Calls in arrear a/c Dr. 400
To Equity share Allotment A/c 1,80,000
(Being the remaining allotment money received on 89800 shares)
Equity share first Call A/c Dr. 270000
To Equity share capital A/c 270000
(Being first Call money due)
Bank A/c Dr. 268500
Calls in arrear a/c Dr. 1500
To Equity share first and final Call A/c 270000
(Being the first Call money received on 89500 shares)
Balance sheet:
In the books of brainly Ltd.
BALANCE SHEET as at...
I. EQUITY AND LIABILITIES
Shareholder's Funds
Share capital 538100
Total: 538100
II. ASSETS
Current Assets
Cash and cash equivalents 538100
Total: 538100
#SPJ1