on 1st April 1995 , A Ltd issued 50,000 shares of rs.100 each payable as follows. rs.20 per share on application. rs.30 per share on allotment. rs. 25 per share on 1 st october 1995. rs. 25 per share on 1 st February 1996 . By 20 th may 40,000 shares were applied for and all application were accepted. Allotment was made on 1st june. All sums due on allotment were received on 15 th july. Those on 1st call were received on 20 th october. when accounts were closed on 31st march 1996, the second and final on 400 shares has not been received. Journalise the transaction.
Answers
Answer:
Explanation:
X Ltd. invited applications for issuing 50,000 equity shares of Rs.10 each. The amount was payable as follows:
On Application : Rs.2 per share
On Allotment : Rs. 2 per share
On First Call : Rs. 3 per share
On Second and Final Call : Balance amount
Applications for 70,000 shares were received. Applications for 10,000 shares were rejected and the application money was refunded.
Shares were allotted to the remaining applicants on a pro-rata basis and excess money received with applications was transferred towards sums due on allotment and calls, if any
Gopal, who applied for 600 shares, paid his entire share money with application. Ghosh, who had applied for 6,000 shares, failed to pay the allotment money and his shares were immediately forfeited. These forfeited shares were re-issued to Sultan for Rs. 20,000; Rs.4 per share paid up. The first call money and the second and final call money was called and duly received.
Pass necessary journal entries for the above transactions in the books of X Ltd., Open Calls-in-Advance Account and Calls-in-Arrears Account wherever necessary.
October 15, 2019
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Akashi Bhutto
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ANSWER
In the books of X Ltd
Journal
Particulars
Dr.
Cr.
Bank A/c Dr.
1,44,800
To Share application A/c
1,44,800
(Being Application money received)
Share application A/c Dr.
1,44,800
To Share capital A/c
1,00,000
To Share allotment A/c
20,800
To Bank A/c
21,000
To Calls in advance A/c
3,000
(Being application money transferred)
OR
Share application A/c Dr.
1,44,800
To Share capital A/c
1,00,000
To Bank A/c
21,000
To Calls in advance A/c
23,800
(Being application money transferred)
Share allotment A/c Dr.
1,00,000
To Share capital A/c
1,00,000
(Being allotment money due)
Bank A/c Dr.
71,200
Calls in advance A/c Dr.
20,800
Calls in arrears A/c Dr.
8,000
To Share allotment A/c
1,00,000
(Being allotment money received)
Share capital A/c Dr.
20,000
To Share forfeiture A/c
12,000
To Calls in arrears A/c
8,000
(Being share forfeited)
Share Ist call A/c Dr.
1,35,000
To Share capital A/c
1,35,000
(Being amount due on first call)
Bank A/c Dr.
1,33,500
Calls in advance A/c Dr.
1,500
To Share Ist call A/c
1,35,000
(Being amount received on first call)
Share final call A/c Dr.
1,35,000
To Share capital A/c
1,35,000
(Being amount due on final call)
Bank A/c Dr.
1,33,500
Calls in advance A/c Dr.
1,500
To Share final call A/c
1,35,000
(Being amount received on final call)
Bank A/c Dr.
20,000
To Share capital A/c
20,000
(Being share reissue)
Share forfeiture A/c Dr.
12,000
To Capital reserve A/c
12,000
(Being amount transferred capital reserve)
October 15, 2019
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