Q. 8. Kanpur Gas Ltd. issued 40,000 equity shares of 10 each at a premium of 1
2.50 on Application; 4.50 on Allotment (including premium); 2 on First Call and
Cash at Bank 9,00,000.]
per share. Amounts were payable as follows:
32 on Final Call
Answers
Answer:
EF Ltd. invited applications for issuing 80,000 equity shares of Rs. 50 each at a premium of 20%. The amount was payable as follows:
On Application : Rs. 20 per share (including premium Rs. 5)
On Allotment: Rs. 15 per share (including premium Rs. 5)
On First Call : Rs. 15 per share
On Second and Final call : Balance amount
Applications for 1,20,000 shares were received. Applications for 20,000 shares were rejected and pro-rata allotment was made to the remaining applicants.
Seema, holding 4,000 shares failed to pay the allotment money. Afterwards the first call was made. Seema paid allotment money along with the first call. Sahaj who had applied for 2,500 shares failed to pay the first call money. Sahaj's shares were forfeited and subsequently reissued to Geeta for Rs. 60 per share, Rs. 50 per share paid up. Final call was not made.
Pass necessary journal entries for the above transactions in the books of EF Ltd. by opening calls-in-arrears account.
Share
Study later
ANSWER
Date
Particulars
L.F.
Debit (Rs.)
Credit (Rs.)
Bank A/c Dr.
24,00,000
To Share Application A/c
24,00,000
(Being application money received on 1,20,000 shares)
Share Application A/c Dr.
24,00,000
To Share Capital A/c
12,00,000
To Securities Premium A/c
4,00,000
To Share Allotment A/c
4,00,000
To Bank A/c
4,00,000
(Being application money adjusted and excess money on 20,000 shares refunded)
Share Allotment A/c Dr.
12,00,000
To Share Capital A/c
8,00,000
To Securities Premium A/c
4,00,000
(Being allotment due on 80,000 shares)
Bank A/c Dr.
7,60,000
Calls in Arrears A/c Dr.
40,000
To Share Allotment A/c
8,00,000
(Being allotment money received and excess money on application adjusted)
Share First Call A/c Dr.
12,00,000
To Share Capital A/c
12,00,000
(Being call money due)
Bank A/c Dr.
11,70,000
Calls in Arrears A/c Dr.
30,000
To Share First Call A/c
12,00,000
(Being first call money received)
Bank A/c Dr.
40,000
To Calls in Arrears A/c
40,000
(Being allotment money received on 4,000 shares)
Share Capital A/c Dr.
80,000
To Share Forfeiture A/c
50,000
To Calls in Arrears A/c
30,000
(Being Sahaj’s share forfeited)
Bank A/c Dr.
1,20,000
To Share Capital A/c
1,00,000
To Securities Premium A/c
20,000
(Being Sahaj’s shares reissued for Rs. 60 per share and Rs. 50 paid up)
Share Forfeiture A/c Dr.
50,000
To Capital Reserve A/c
50,000
(Being amount transferred on shares reissued)
Computation table
Categories
Shares Applied
Shares Allotted
Money received on Application @ Rs. 20
Money transferred to share capital @ Rs. 15
Money transferred to Securities Premium @ Rs. 5
Allotment due @ Rs. 15
Excess on application
Refund
I
20,000
Nil
4,00,000
4,00,000
II
1,00,000
80,000
20,00,000
12,00,000
4,00,000
12,00,000
4,00,000
1,20,000
80,000
24,00,000
12,00,000
4,00,000
12,00,000
4,00,000
4,00,000
Shares allotted
Shares applied
Excess on application
Seema’s shares (Category II)
4,000
5,000 (4,000 * 1,00,000/80,000)
20,000
Sahaj’s shares (Category II)
2,000 (2,500 * 80,000/1,00,000)
2,500
How satisfied are you with the answer?
This will help us to improve better
answr
Get Instant Solutions, 24x7
No Signup required
girl
Prev Question
Next Question
Answer:
Correct Solution You can trust ....
Dk Goel Issue of shares 8th question....
SUBSCRIBE " KIDDOZ TV " ON YOUTUBE ......
SUBSCRIBE""THE BEST GAMER"" ON YOUTUBE
