Share.
13 Rakesh Ltd. issued 2000 equity shares of
100 each at a premium of 20 per share
payable as
follows:
On Application . 20
On Allotment. 50 (including Premium)
On first Call '20
On final Call '30
Applications were received for 3000 shares,
2000 share allotted to the applicants for
2400 shares.
The remaining applications for 600 shares
being refused and application money there
on was refunded. Excess money received on
application was adjusted against allotment.
All amounts were duly received except Mr.
Mandar to whom 80 shares were alloted.
Mandar fails to pay First and Final call. His
shares were forfeited and were reissued to
Mr. Ketan as fully paid at 80 per share.
Journalise the transactions in the books of
the company and prepare bank account
Answers
Share Application Entries
Bank A/c Dr. (3000 x 20) 60,000
To Share Application A/c (3000 x 20) 60,000
(Being application money on 3,000 shares @ 20 per share received)
Share Application A/c Dr. (3000 x 20) 60,000
To Share Capital A/c (2000 x 20) 40,000
To Share Allotment A/c (2000 x 4) 8,000
To Bank A/c (600 x 20) 12,000
(Being the transfer of application money, 2,000 shares to share capital account and 1,000 shares to Share Allotment A/c and refund of application money on 600 shares)
Share Allotment Entries
Share Allotment A/c Dr. (2000 x 50) 1,00,000
To Share Capital A/c (2000 x 30) 60,000
To Securities Premium A/c (2000 x 20) 40,000
(Being the transfer of allotment money on 2,000 shares @ 30 per share to share capital account and Rs. 20 per share to Securities premium A/c)
Bank A/c Dr. (2000 x 46) 92,000
To Share Allotment A/c (2000 x 46) 92,000
(Being allotment money and premium money on 2,000 shares received @ 26 per share and @ 20 per share respectively after adjusting advance of Rs. 4 per share)
Share First Call Entries
Share first call A/c Dr. (2000 x 20) 40,000
To Share Capital A/c (2000 x 20) 40,000
(Being first call money on 2,000 shares @ 20 per share due and transferred to share capital account)
Bank A/c Dr. (1920 x 20) 38,400
Calls in Arrears A/c Dr. (80 x 20) 1,600
To Share first call A/c (2000 x 20) 40,000
(Being first call money on 1,920 shares @ 20 per share received and for 80 shares not received and posted to calls in arrears a/c)
Share Final Call Entries
Share final call A/c Dr.(2000 x 30) 60,000
To Share Capital A/c (2000 x 30) 60,000
(Being final call money on 2,000 shares @ 20 per share due and transfered to share capital account)
Bank A/c Dr. (1920 x 30) 57,600
Calls in Arrears A/c Dr (80 x 30) 2,400
To Share final call A/c (2000 x 30) 60,000
(Being final call money on 1,920 shares @ 20 per share received and for 80 shares not received and posted to calls in arrears a/c)
Share Forfeiture Entries
Share Capital A/c Dr. (80 x 100) 8,000
To Share Forfeiture A/c (80 x 50) 4,000
To Calls in Arrears A/c (80 x 50) 4,000
(Being 80 shares forfeited)
Share re-issue
Bank a/c Dr. (80 x 80) 6,400
Share Forfeiture a/c Dr. (80 x 20) 1,600
To Share Capital (80 x 100) 8,000
(Being 80 shares re-issued @ 80 per share and money received and loss on forfeiture (discount on face value) adjusted to share capital account)
Share Forfeiture A/c Dr. (80 x 30) 2,400
To Capital Reserve A/c (80 x 30) 2,400
(Being excess amount received on 80 shares adjusted to capital reserve)
Bank Account
Particulars Amount Particulars Amount
To Share Application A/c 60,000 By Share Application A/c 12,000
To Share Allotment A/c 92,000
To Share first call A/c 38,400
To Share final call A/c 57,600
To Share Capital A/c 6,400 By Balance c/d 2,42,400
Total 2,54,400 2,54,400
Explanation:
This is the answer of -
In the books of Rakesh Ltd.
Journal Entries for Issue of Shares
