A Ltd. Invited applications for 10,000 equity shares of Rs.100 each at a premium of
Rs.10 per share. Payment was to be made as follows:
On application- Rs.20
On allotment –Rs.40 (including premium)
On first call –Rs.30
On final call –Rs.20
Applications totaled for 13,000 shares. Applications for 2,000 shares were
rejected and allotment of shares was proportionately to the remaining applicants. The
directors made both the calls and all the moneys received except the final call on 300
shares which were forfeited after the required notices were served. Later 200 of the
forfeited shares were reissued as fully paid @ Rs.85 per share. Journalize the
transactions and prepare the balance sheet
Answers
Answer:
ANSWER
In the books of A Ltd.
Journal
Particulars
Dr.
Cr.
Bank A/c Dr.
4,80,000
To Share application A/c
4,80,000
(Being money received)
Share application A/c Dr.
4,80,000
To Share capital A/c
3,00,000
To Share allotment A/c
1,50,000
To Share Ist call A/c
30,000
(Being money transferred)
Share allotment A/c Dr.
3,00,000
To Share capital A/c
2,00,000
To SPR A/c
1,00,000
(Being money due)
Bank A/c Dr.
1,47,300
Calls in arrears A/c Dr.
2,700
To Share allotment A/c
1,50,000
(Being money received)
Share Ist call A/c Dr.
3,00,000
To Share capital A/c
3,00,000
(Being money due)
Bank A/c Dr.
2,64,400
Calls in arrears A/c Dr.
5,400
To Share Ist call A/c
2,70,000
(Being first call received)
Share final call A/c Dr.
2,00,000
To Share Capital A/c
2,00,000
(Being first call due)
Bank A/c Dr.
1,96,000
Calls in Arrears A/c Dr.
4,000
To Share final call A/c
2,00,000
(Being final call received)
Share capital A/c Dr.
12,000
SPR A/c Dr.
1,200
To Share forfeited A/c
4,500
To calls in Arrears A/c
8,700
(Being share forfeited)
Share capital A/c Dr.
8,000
To Share forfeited A/c
4,600
To Calls in arrears A/c
3,400
(Being share forfeited)
Bank A/c Dr.
14,000
Share forfeited A/c Dr.
6,000
To Share Capital A/c
20,000
(Being share reissue)
Share forfeited A/c Dr.
3,100
To Capital reserve A/c
3,100
(Being amount transferred capital reserve)
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