Asansol Company Ltd. was registered with a nominal capital of 3 10,00,000 divided into 1,00,000 equity
shares of 10 each.
The company offered for public subscription 40,000 shares payable as follows:
on application 3 per share, on allotment 7 per share and the balance on call (including premium * 5).
Applications were received for 45,000 shares and 40,000 shares were only allotted. Money received on
excess applications were refunded. All the money due on the shares were duly received except call
money on 1,000 shares.
Show necessary Journal entries to record the above transactions in the books of the company and
prepare a Balance Sheet.
Answers
Answer:
Journal
Bank account. dr 135000
To share application a/c. 135000
Share application a,/c. dr 135000
To share capital account. 120000
To bank account. 15000
Share allotment account dr 280000
To share capital account. 80000
To security premium reserve 200000
Bank account. dr. 280000
To share allotment acc 280000
Share final call account dr 200000
Ti share capital account. 200000
bank account. dr. 195000
To share final call a/c. 195000
Balance sheet
particulars. note no. c.y. p.y.
equity
& liabilities
1. shareholders
fund.
a. share capital 1. 395000
b. reserve &
surplus. 2. 200000
total. 595000
Assets
current assets
cash & cash
equivalent 595000
total. 595000
noted to accounts
1. share capital
authorised capital
100000 share of 10 each 1000000
issued capital
40000share of 10 each. 400000
subscribed and fully paid capital
39000 share of 10 each 390000
subscribed but not fully paid up capital
1000 share of 10 each 10000
(-) calls in arrear. 5000. 5000
total subscribed capital 395000