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प्रश्न
Saturn Ltd. was registered with an authorized capital of ` 12,00,000. "divided into" ` 1,20,000 :equity shares of ` 10
"each. It issued "40,000" equity shares to the public at a premium of" ` 5 "per share, payable as follows": [12]
"On application" ` 6
"On allotment" ` 9 (including premium of 5)
All the shares were applied for and allotted. One shareholder holding 500 shares did not pay the allotment money
and his shares were forfeited. Out of the forfeited shares, the company reissued 400 shares at 7 per share fully
called up.
You are required to:
(a) Pass journal entries in the books of the company.
(b) Prepare :
(i) Securities Premium Reserve Account,
(ii) Share Capital Account.
उत्तर
(a) Journal of Saturn Ltd.
| Date | Particulars | L.F. | Amount Rs |
Amount Rs |
| Bank A/c ............Dr To share Application A/c (Being share application money received) |
2,40,000
|
2,40,000 | ||
| Share Application A/c.... Dr To Equity Share Capital A/c (Being share application transferred to share capital A/c) |
2,40,000
|
2,40,000 | ||
| Share Allotment A/c .....Dr To Equity Share Capital A/c To Securities Premium / SPR (Being share allotment money due) |
3,60,000
|
1,60,000 2,00,000 |
||
| Bank A/c .......... ...Dr Calls-in-Arrear A/c..... Dr To Share Allotment A/c (Being share allotment money received) |
3,55,500 4,500
|
3,60,000 | ||
| Equity Share Capital A/c ......Dr Securities Premium / SPR A/c .......Dr To Share Forfeiture A/c To Calls-in-Arrear A/c (Being 500 shares forfeited) |
5,000 2,500
|
3,000 4,500 |
||
| Bank A/c.... Dr Share forfeiture A/c...... Dr To Equity Share Capital A/c (Being 400 shares reissued) |
2,800 1,200
|
4,000 |
||
| Share Forfeiture A/c...... Dr To Capital Reserve A/c (Being gain on reissued shares transferred to capital reserve) |
1,200
|
1,200 |
(b) (i) Securities Premium Reserve Account
| Particulars | Amount | Particulars | Amount |
| To calls-in-arrear |
2,500 |
By Share Allotment A/c | 2,00,000 |
| To Balance c/d | 1,97500 | ||
| 2,00,000 | 2,00,000 |
(ii) Share Capital Account
| Particulars | Amount | Particulars | Amount |
| To Share Forfeiture A/c |
3,000 |
By Share Application A/c | 2,40,000 |
| To Calls-in-arrears | 2,000 | By Share Allotment A/c | 1,60,000 |
| To Balance c/d | 3,99,000 | By Bank A/c | 2,800 |
| By Share Forfeiture A/c | 1,200 | ||
| 4,04,000 | 4,04,000 |
APPEARS IN
संबंधित प्रश्न
For issuing shares at discount a company has to fulfil many conditions. State any three such conditions
'Cheques and drafts in hand' are not considered while preparing cash flow statement. Why?
What is the basis of preparing Receipt and Payment Account?
Answer briefly of the following question :
What is the minimum price at which a company can reissue its forfeited shares which were originally issued
at par?
The following balances have been extracted from the books of Vanity Ltd. as at 31st March, 2017:
Trial Balance as at 31st March, 2017
| Particulars | Debit | Credit |
| Equity Share Capital (5,000 shares of ` 100 each fully paid) | 5,00,000 | |
| Fixed Assets | 7,30,000 | |
| Reverses and Surplus | 2,00,000 | |
| Inventories | 50,000 | |
| Cash and Bank Balances | 1,70,000 | |
| Creditors | 40,000 | |
| Bills Payable | 20,000 | |
| Underwriting Commission on issue of shares | 10,000 | |
| 5% Debentures (1/5 of the Debentures to be redeemed on 31st March, 2018) | 2,00,000 | |
| Proposed Dividend | 12,000 | |
| Interest accrued and due on 5% Debentures | 8,000 | |
| Trade Receivables | 20,000 | |
| Total | 9,80,000 | 9,80,000 |
Modern Chemicals Co. Ltd. made an issue of 60,000 shares of Rs. 20 each payable as follows :
On application Rs. 5 per share
On allotment Rs. 5 per share
On first call Rs. 4 per share
On second call Rs. 3 per share
The company received applications for 65,000 shares of which applications for 5,000 shares were
rejected and money refunded.
All the shareholders paid up to second call except one shareholder, Mr. Bhupendra, the allotee of
100 shares, who did not pay the amount of the second call.
Give Journal Entries in the books of Modern Chemicals Co., Ltd.
Answer in one Sentence only :
Define securities premium.
State, whether the following statements is True or False.
Shares are issued for cash only.
What is meant by the issue of shares for consideration other than cash?
An extract of the Balance Sheet of Nova Ltd. shows:
| Particulars | 31.03.2023 (₹) | 31.03.2022 (₹) |
| Share Capital (Equity shares @ ₹ 10 each) | 8,00,000 | 5,00,000 |
| Securities Premium | 70,000 | 1,70,000 |
During the year 2022-23, the company raised its share capital by issuing bonus shares to the shareholders at the beginning of the year in the ratio of 1 : 5 (one bonus share was issued for every five equity shares). The balance shares were issued for cash to the public.
How many shares were issued for cash by the company?
