Q.1) Roshni Ltd. Issued 20,000 Preference Shares of ` 50 each
payable as follows: On Application ` 10, On Allotment ` 15, On
First Call ` 10 and On Second & final call ` 15. Company
received application for all these shares and received all money.
Pass Journal entries in the books of Roshni Ltd.
Answers
Answer:
Date
Particulars
L.F.
Debit (Rs.)
Credit (Rs.)
Bank A/c Dr.
2,10,000
To Share Application A/c
2,10,000
(Being application money received on 70,000 shares)
Share Application A/c Dr.
2,10,000
To Share Capital A/c
1,00,000
To Securities Premium Reserve A/c
50,000
To Share Allotment A/c
15,000
To Bank A/c
45,000
(Being application money transferred to share capital and adjusted)
Share Allotment A/c Dr.
1,50,000
To Share Capital A/c
1,00,000
To Securities Premium Reserve A/c
50,000
(Being allotment due on 50,000 shares)
Bank A/c Dr.
1,11,000
Calls in Arrears A/c Dr.
24,000
To Share Allotment A/c
1,35,000
(Being allotment money received with the exception of 8,000 shares)
Share First Call A/c Dr.
1,50,000
To Share Capital A/c
1,50,000
(Being first call due on 50,000 shares)
Bank A/c Dr.
1,20,000
Calls in Arrears A/c Dr.
30,000
To Share First Call A/c
1,50,000
(Being allotment money received with the exception of 8,000 shares)
Share Capital A/c Dr.
56,000
Securities Premium Reserve A/c
8,000
To Forfeited Shares A/c
16,000
To Calls in Arrears A/c
48,000
(Being 8,000 shares for non-payment of allotment and first call and 2,000 shares for non-payment of first call forfeited)
Bank A/c Dr.
32,000
Forfeited Shares A/c Dr.
8,000
To Share Capital A/c
40,000
(Being 50% of forfeited shares reissued as fully paid-up)
Pro-Rata Computation table
Categories
Shares Applied
Shares Allotted
Application Money received @ Rs. 3
Application Money transferred to share capital & SPR @ Rs. 3
Excess on application (Rs.)
Allotment @ Rs. 3 against
First call @ Rs. 3
Refund Rs.
Face value @ Rs. 2
SPR @ Rs. 1
A
5,000
5,000
15,000
15,000
B
50,000
45,000
1,50,000
1,35,000
15,000
15,000
C
15,000
45,000
45,000
70,000
50,000
2,10,000
1,50,000