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Question
Arti Ltd. offered for subscription 20,000 shares of ₹ 10 each payable ₹ 3 on application, ₹ 5 on allotment and balance on first and final call. Applications were received for 30,000 shares. Letters of regret were issued to applicants for 5,000 shares and their application money was refunded. Application money for other 5,000 shares was applied towards the payment for allotment money. The balance of allotment money was also received in due time. Company didn't make first and final call.
You are to prepare the Journal, Cash Book, Ledger Accounts and show 'Share Capital' in the Balance Sheet of the company.
Solution
|
Issued Capital |
20,000 shares at ₹ 10 each |
|
Applied |
30,000 shares |
|
Over-subscribed |
10,000 shares |
|
Applied |
Allotted |
Over-subscribed |
|
25,000 |
20,000 |
5,000 |
|
5,000 |
NIL |
5,000 |
|
30,000 |
20,000 |
10,000 |
Payable as:
|
₹ |
3 |
on application |
|
₹ |
5 |
on allotment |
|
|
8 |
Called-up |
Books of Arti Limited
Cash Book
Dr. Cr.
|
Date |
Particulars |
L.F. |
Bank (₹) |
Date |
Particulars |
L.F. |
Bank (₹) |
||
|
|
Share Application |
|
|
|
Share Application |
|
|
||
|
|
(30,000 shares × Rs 3) |
|
90,000 |
|
(5,000 shares × Rs 3) |
|
15,000 |
||
|
|
Share Allotment |
|
85,000 |
|
|
|
|
||
|
|
|
|
|
|
Balance c/d |
|
1,60,000 |
||
|
|
|
|
1,75,000 |
|
|
|
1,75,000 |
||
Journal
|
Date |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
|
|
|
Share Application A/c |
Dr. |
|
75,000 |
|
|
|
To Share Capital A/c |
|
|
60,000 |
|
|
|
To Share Allotment A/c |
|
|
15,000 |
|
|
|
(Share application of 20,000 shares at Rs 3 each transferred to Share Capital Account and excess money Rs 15,000 transferred to allotment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Allotment A/c |
Dr. |
|
1,00,000 |
|
|
|
To Share Capital A/c |
|
|
1,00,000 |
|
|
|
(Share allotment due on 20,000 shares at Rs 5 each) |
|
|
|
|
Arti Limited
Balance Sheet
|
Particulars |
Note No. |
Amount (₹) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
1,60,000 |
|
2. Non-Current Liabilities |
|
|
|
3. Current Liabilities |
|
|
|
Total |
|
1,60,000 |
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
2 |
1,60,000 |
|
Total |
|
1,60,000 |
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
Amount (₹) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
…… shares of Rs 10 each |
– |
|
|
Issued Share Capital |
|
|
|
20,000 shares of Rs 10 each |
2,00,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
20,000 shares of Rs 10 each, on which Rs 8 called-up and paid-up |
1,60,000 |
|
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
1,60,000 |
APPEARS IN
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