bluechip ltd had issued 20,000 equity shares of 100 each for public subscription. the amounts were payable as follows: on application 40 , on allotment 30,on first call 20 on second call 10 . Reema who was alloted 400 shares failed to pay the allotment money and both the calls, bhushan who was allotted 600 shares failed to pay both the calls. charu who was allotted 800 shares failed to pay the amount due on the second call. the company after giving proper notices forfeited the shares. show journal entries regarding issue of shares and forfeiture of shares and draw up the balance sheet of bluechip ltd.
Answers
dhrjdjtjwkwkskdkkdkddjkfjfjfkrkess
jjejjfjfiffhhjjkndjssjfvjgdfcgrfcf
Share Application Entries
Bank A/c Dr. (20,000 x 40) 8,00,000
To Share Application A/c (20,000 x 40) 8,00,000
(Being application money on 20,000 shares @ 40 per share received)
Share Application A/c Dr. (20,000 x 40) 8,00,000
To Share Capital A/c (20,000 x 40) 8,00,000
(Being the transfer of application money, 20,000 shares to share capital account)
i.)
Share Allotment Entries
Share Allotment A/c Dr. (20,000 x 30) 6,00,000
To Share Capital A/c (20,000 x 30) 6,00,000
(Being the transfer of allotment money on 20,000 shares @ 30 per share to share capital account)
Bank A/c Dr. ((20,000-400) x 30) 5,88,000
Calls in Arrears A/c Dr. (400 x 30) 12,000
To Share Allotment A/c (20,000 x 30) 6,00,000
(Being allotment money on 19,600 shares received @ 30 per share excluding 200 shares of Reema)
ii.)
Share First Call Entries
Share First call A/c Dr. (20,000 x 20) 4,00,000
To Share Capital A/c (20,000 x 20) 4,00,000
(Being first call money on 20,000 shares @ 20 per share due and transferred to share capital account)
Bank A/c Dr. ((20,000-1000) x 20) 3,80,000
Calls in Arrears A/c Dr. (1000 x 20) 20,000
To Share First call A/c (20,000 x 20) 4,00,000
(Being first call money on 19,000 shares @ 20 per share received)
iii.)
Share Second & Final Call Entries
Share Second & Final call A/c Dr. (20,000 x 10) 2,00,000
To Share Capital A/c (20,000 x 10) 2,00,000
(Being Final call money on 20,000 shares @ 10 per share due and transferred to share capital account)
Bank A/c Dr. (20,000 -1800)x 10 1,82000
Calls in Arrears A/c Dr. (400 x 4) 18,000
To Share Second & Final call A/c (20,000 x 10) 2,00,000
(Being Final call money on 18,200 shares @ 10 per share received)
Share Forfeiture Entries
Share Capital A/c Dr. (400 x 100) 40,000
To Share Forfeiture A/c (400 x 40) 16,000
To Calls in Arrears A/c (400 x 60) 24,000
(Being 400 shares of Reema forfeited)
Share Capital A/c Dr. (600 x 100) 60,000
To Share Forfeiture A/c (600 x 70) 42,000
To Calls in Arrears A/c (600 x 30) 18,000
(Being 600 shares of Bhushan forfeited)
Share Capital A/c Dr. (800 x 100) 80,000
To Share Forfeiture A/c (800 x 90) 72,000
To Calls in Arrears A/c (800 x 10) 8,000
(Being 800 shares of Charu forfeited)
Balance Sheet of Blue chip Ltd.
Particulars Note No. Amount
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital 1 19,50,000
2. Non-Current Liabilities
3. Current Liabilities
Total 19,50,000
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents 2 19,50,000
Total 19,50,000
Note1
Share Capital
Authorized Share Capital
Issued Share Capital
20,000 shares of Rs.100 each 20,00,000
Subscribed, Called-up and Paid-up Share Capital
20,000 shares of Rs.100 each 20,00,000
Less: Calls-in-Arrears (50,000) 19,50,000
Note2
Cash and Cash Equivalents
Cash at Bank 19,50,000