Accountancy, asked by AnitaRathi, 1 month ago

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

Answered by ranjanarajendrapande
2

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Answered by shilpa85475
6

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

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