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प्रश्न
JS Ltd. invited applications for issuing 80,000 equity shares of Rs.10 each at a premium of Rs.6 per share. The amount was payable as follows:
On application - Rs.4 per share (including premium Rs.1 per share)
On Allotment - Rs.6 per share (including premium Rs.3 per share)
On First and Final Call — Balance
Applications for 1,60,000 shares were received. Applications for 40,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Raman holding 400 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the final call was made. Veer who had applied for 1,200 shares failed to pay the final call. His shares were also forfeited. Out of the forfeited shares 500 shares were re-issued at Rs.8 per share fully paid-up. The re-issued shares included all the forfeited shares of Raman.
Pass necessary journal entries for the above transactions in the books of J.S. Ltd.
उत्तर
Books of JS Ltd
Journal
| Date | Particulars | L.F. | Dr.(Rs.) | Cr.(Rs.) |
|
Bank A/c Dr To Equity Share Application A/c (Being amount received on application for 1,60,000 shares)
Equity Share Application A/c Dr To Equity Share Capital A/c To Securities Premium A/c To Equity Share Allotment A/c To Bank A/c (Being amount of application transferred to Share Capital and excess money adjusted towards allotment)
Equity Share Allotment A/c Dr To Equity Share Capital A/c To Securities Premium A/c (Being amount due on allotment)
Bank A/c (Rs.4,80,000 – 1,60,000 – 1,600) Dr To Equity Share Allotment A/c (Being amount received on share allotment)
Share Capital A/c Dr Securities Premium A/c Dr To Share Forfeiture A/c To Share Allotment A/c (Being 400 shares of Jain are forfeited due to non – payment of allotment money)
Equity Share First and Final A/c Dr To Equity Share Capital A/c To Securities Premium A/c (Being amount due on first and final call on 79,600 shares)
Bank A/c (Rs.4,77,600 – 4,800) Dr To Equity Share First and Final Call A/c (Being amount received on first and final call)
Equity Share Capital A/c Dr Securities Premium A/c Dr To Equity Share Forfeiture A/c To Equity Share First and Final Call A/c (Being shares of Gupta were forfeited)
Bank A/c Dr Share Forfeiture A/c Dr To Equity Share Capital A/c (Being forfeited shares were re-issued at Rs.8 per share fully paid up)
Equity Share Forfeiture A/c Dr To Capital Reserve A/c (Being excess amount on forfeiture is transferred to capital reserve) |
6,40,000
6,40,000
4,80,000
3,18,400
2,400 1,200
4,77,600
4,72,800
8,000 1,600
4,000 1,000
1,600
|
6,40,000
2,40,000 80,000 1,60,000 1,60,000
2,40,000 2,40,000
3,18,400
2,000 1,600
3,18,400 1,59,200
4,72,800
4,800 4,800
5,000
1,600
|
Computation Table
| Categories | Applied Shares | Shares Allotted | Money Received on Application @ Rs.3 each | Money transferred to Share Capital @ Rs.2 each | Money transferred to Securities Premium @ Rs.1 each | Excess Application money | Amount Adjusted on Allotment | Money refunded |
| I | 40,000 | NIL | 1,60,000 | 1,60,000 | 1,60,000 | |||
| II | 1,20,000 | 80,000 | 4,80,000 | 2,40,000 | 80,000 | 1,60,000 | 1,60,000 | |
| 1,60,000 | 80,000 | 6,40,000 | 2,40,000 | 80,000 | 1,60,000 | 1,60,000 | 1,60,000 |
Calculation of amount unpaid on Allotment
Share Applied by Raman = (120000/80000) x 400 = 600 Shares
Excess money received from Jeevan = 800 (200 x 4)
Amount due on Allotment = 1,200 (400 x 3)
Less : Excess Application Money = 800
------------------
Amount unpaid on Allotment = 400
Amount unpaid on Securities Premium = 1,200 (400 x 3)
------------------
Total amount unpaid on allotment = 1,600
Calculation of amount received from Jeevan (Share Forfeiture Cr.)
Amount received on application = 1,200 (400 x 3) ⇒ excluding premium
Add :Excess Application money = 800
-----------------------------------------------------
Share Forfeiture (Cr.) = 2,000
Unpaid amount on First and Final Call
Share Allotted to Veer = (80000/120000) x 1200 = 800 Shares
Unpaid amount on First and Final Call = 4,800 (800 x 6)
Calculation of amount received from Veer (Share Forfeiture Cr.)
Amount received on application = 2,400 (800 x 3) ⇒ excluding premium
Amount received on allotment = 2,400 (800 x 3) ⇒ excluding premium
Total amount received = 4,800
Calculation of Capital Reserve
(i) 400 shares of Raman are reissued
Share forfeiture (Cr.) = 2,000
Less :Share forfeiture (Dr.) = 800 (400 x 2)
---------------------------
Capital Reserve = 1,200
(ii) 100 Shares of Veer are reissued
Share Forfeiture (Cr.) for 800 shares = 600((4800/800)x100)
Less : Share Forfeiture (Dr.) = 200 (100 x 2)
------------------------------------
Capital Reserve = 400
Total Amount of Capital Reserve = 1,600 (1,200 + 400)
APPEARS IN
संबंधित प्रश्न
GG Ltd has issued 50,000 equity shares of 10 each at a premium of 2 per share payable with application money. The incomplete journal entries related to the issue are given below. You are required to complete these blanks.
Books of GG Ltd
Journal
| Date | Particulars | L.F. | Dr.(Rs.) | Cr.(Rs.) |
|
2015 Jan 10
|
_ _ _ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (Amount received on application for 70,000 shares @ 5 per share including premium) |
|||
|
Jan 16
|
Equity Share Application A/c Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ To _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ To _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ To _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ (Transfer of application money to share capital securities premium, money refunded for 8,000) shares for rejected application and balance adjusted towards amount due on allotment as shares were allotted on Pro-rata basis) |
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|
Jan 31
|
_ _ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ (Amount due on allotment @ Rs.4 per share) |
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|
Feb 20
|
_ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ (Balance amount received on allotment) |
|||
|
April 01
|
_ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (First and Final Call money due) |
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|
April 20
|
_ _ _ _ _ _ _ _ _ _ Dr Calls – in – arrears A/c Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ (Money received on First and Final Call) |
1,500
|
||
|
Aug 27
|
_ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ (Forfeited the shares on which call money was not received) |
|||
|
Oct 3
|
_ _ _ _ _ _ _ _ _ _ Dr _ _ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ (Re-issued the forfeited shares @ 8 per share fully paid - up) |
|||
| _ _ _ _ _ |
_ _ _ _ _ _ _ _ __ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ (_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ __ ) |
To provide employment to the youth and to develop Baramula district of Jammu and Kashmir, Jyoti Power Ltd. decided to setup a power plant. For raising funds the company decided to issue 8,50,000 equity shares of Rs.10 each at a premium of Rs.3 per share. The whole amount was payable on application. Applications for 20,00,000 shares were received. Applications for 3,00,000 shares were rejected and shares were alloted to the remaining applicants on pro- rata basis.
Pass necessary journal entries for the above transactions in the books of the company and identify any two values which the company wants to propagate.
SK Ltd. invited applications for issuing 3,20,000 equity shares of Rs.10 each at a premium of Rs.5 per share. The amount was payable as follows:
On application Rs.3 per share (including premium Rs.1 per share)
On allotment Rs.5 per share (including premium Rs.2 per share)
On First and Final Call - Balance
Applications for 4,00,000 shares were received. Applications for 40,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Jeevan holding 800 shares failed to pay the allotment money and his shares were immediately forfeited. Afterwards final call was made. Ganesh who had applied for 2,700 shares failed to pay the final call. His shares were also forfeited. Out of the forfeited shares 1,500 shares were re-issued at Rs.8 per share fully paid up. The re-issued shares included all the forfeited shares of Jeevan.
Pass necessary journal entries for the above transactions in the books of the company.
BBG Ltd. had issued 1,00,000 equity shares of Rs.10 each at a premium of Rs.3 per share payable with application money. While passing the journal entries related to the issue, some blanks are left. You are required to complete these blanks.
Books of BBG Ltd
Journal
| Date | Particulars | L.F. | Dr.(Rs.) | Cr.(Rs.) |
|
2015 Jan 05
|
_ _ _ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (Amount received on application for 1,40,000) shares @ Rs.6 per share including premium) |
|||
|
Jan 17
|
Equity Share Application A/c Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ To _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ To _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ To _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ (Transfer of application money to share capital securities premium, money refunded for 20,000 shares for rejected application and balance adjusted towards amount due on allotment as shares were allotted on Pro-rata basis) |
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|
Jan 17
|
_ _ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ (Amount due on allotment @ Rs.4 per share) |
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|
Feb 20
|
_ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ (Balance amount received on allotment) |
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|
April 01
|
_ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (First and Final Call money due) |
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|
April 20
|
_ _ _ _ _ _ _ _ _ _ Dr Calls – in – arrears A/c Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ (Money received on First and Final Call) |
3,000
|
||
|
May 20
|
_ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ (Forfeited the shares on which call money was not received) |
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|
June 15
|
_ _ _ _ _ _ _ _ _ _ Dr _ _ _ _ _ _ _ _ _ _ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ (Re-issued the forfeited shares) |
3,000
|
||
| _ _ _ _ _ |
_ _ _ _ _ _ _ _ __ Dr To _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ (_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ __ ) |
Samachar India Ltd. took over the assets of Rs 14,00,000 and liabilities of Rs 4,00,000 from News Ltd. for a purchase consideration of Rs 9,19,000. Samachar India Ltd. issued a promissory note of Rs 17,000 payable after 60 days in favour of News Ltd. and the balance amount was paid by issue of equity shares of Rs 100 each at a premium of Rs 25 per share.
Pass necessary Journal entries for the above transactions in the books of Samachar India Ltd.
Y. Ltd forfeited 1,00 equity shares of Rs 10 each for the non-payment of the first call of Rs 2 per share. The final call of Rs2 per share was yet to be made.
Calculate the maximum amount of discount at which these shares can be reissued.
X Ltd invited applications for issuing 500, 12 % debentures of `100 each at a discount of 5%. These debentures were redeemable after these years at par. Applications for 600 debentures were received. Prorata allotment was made to all the applications.
Pass necessary journal entries for the issue of debentures assuming that the whole amount was payable with application.
What is meant by ' Securities Premium '?
Pass necessary journal entries for the following transactions in the books of Sewak Ltd.:
(i) Sewak Ltd. acquired assets of Rs 5,00,000 and liabilities of Rs 3,00,000 of Goodwill Ltd. for a purchase consideration of Rs 1,35,000. Payment to Goodwill Ltd. was made by issuing equity shares of 10 each at a discount of 10%.
(ii) Purchase furniture of Rs 5,00,000 from Ramprastha Ltd. The payment to Ramprastha Ltd. was made by issuing equity shares of Rs 10 each at a premium of 25%.
Answer in one Sentence only :
What is meant by share premium?
Give one word / Term / phrase for the following statement :
Issue of share above face value.
Select the most appropriate answer from the alternatives given below and rewrite the sentence :
As per SEBI guidelines, the minimum amount payable on share application should be ____________ of nominal value of share.
Select the most appropriate answer from the alternatives given below and rewrite the sentence :
If shares are issued at its face value, it is called as issue at __________________.
(Issue at premium and calls in arrears)
Hindusthan Petroleum Ltd., invited application for 40,000 Equity shares of Rs 100 each payable as under including 20% premium:
| On Application | Rs 30 | On Allotment | Rs 40 (including premium) |
| On First Call | Rs 20 | On Final Call | Rs 30 |
All the shares were applied for and also allotted. One share holder who was allotted 500 shares failed to pay first and final call.
Record the above transactions in the journal of the company.
(Issue at discount and Pro-rate allotment)
Global IT Ltd. issued 1,00,000 shares of 10 each at a discount of 10% payable as follows-
| On Application | Rs 3 | On Allotment | Rs 3 (Discount) |
| On First Call | Rs 2 | On Second Call | Rs 1 |
Public applied for 1,20,000 shares and the directors made pro-rata allotment to the applicants.
Show the journal of the company assuming that all money received on allotment and calls.
State, whether the following statements is True or False.
A public company can issue shares at only rate of discount.
Premier Tools Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:
On application - ₹ 5 per share (including premium)
On allotment - ₹ 3 per share
On first & final call – Balance
Applications were received for 2,50,000 shares. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Over payments received on application were adjusted towards sums due on allotment.
All calls were made and duly received except allotment and first and final call from Naveen who applied for 7,200 shares. His shares were forfeited. Half of the forfeited shares were reissued for ₹ 48,000 as fully paid.
Pass the necessary journal entries for the above transactions in the books of Premier Tools Ltd. Open calls-in-arrears account wherever required.
