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Question
Bandekar Industries Co. Ltd. Issued 60,000 equity shares of Rs. 100 each, payable as follows :
On application - Rs. 20
On allotment - Rs. 30
On First Call - Rs. 25
On Second call and Final Call - Rs. 25
The company received applications for 48,000 equity shares. All the applications were accepted and shares alloted. The company made both the calls.
One shareholder Mr. Ramesh holding 1,600 shares failed to pay the final call. His shares were forfeited.
Pass Journal entries in the books of Bandekar Industries Co. Ltd.
Solution
Issue of shares
In the books of Bandekar Industries Co. Ltd.
| Date | Particulars | L.F. | Amount | Amount | |
| 1. | Bank A/c | Dr. | 9,60,000 | ||
| To Share Application A/c | 9,60,000 | ||||
| (Being application money @ 20 received on 48,000 shares.) | |||||
| 2. | Share Application A/c | Dr. | 9,60,000 | ||
| To Share Capital A/c | 9,60,000 | ||||
| (Being application money transferred to share capital) | |||||
| 3. | Share Allotment A/c | Dr. | 14,40,000 | ||
| To Share Capital A/c | 14,40,000 | ||||
| (Being allotment money @ Rs 30 due on 48,000 shares) | |||||
| 4. | Bank A/c | Dr. | 14,40,000 | ||
| To Share Allotment A/c | 14,40,000 | ||||
| (Being allotment money received.) | |||||
| 5. | Share First A/c | Dr | 12,00,000 | ||
| To Bank A/c | 12,00,000 | ||||
| (Being first call money @ Rs. 25 due on 48,000 shares) | |||||
| 6. | Bank A/c | Dr. | 12,00,000 | ||
| To Share First Call A/c | 12,00,000 | ||||
| ( Being first call money received.) | |||||
| 7. | Share Second and Final Call A/c | Dr. | 12,00,000 | ||
| To Share Capital A/c | 12,00,000 | ||||
| (Being Second and final call money @ Rs. 25 due on 48,000 shares.) | |||||
| 8. | Bank A/c | Dr. | 11,60,000 | ||
| To Share Second and Final Call A/c | 11,60,000 | ||||
| (Being Second and final call money received on only on 46,400 shares) | |||||
| 9. | Share Capital A/c | Dr | 1,60,000 | ||
| To Share Forfeiture A/c | 1,20,000 | ||||
| To Share Second and Final Call A/c | 40,000 | ||||
| (Being 1,600 shares forfeited.) |
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On the basis of the following information, calculate:
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Information
|
Particulars |
Amount Rs |
|
Net Sales |
60,00,000 |
|
Cost of goods sold |
45,00,000 |
|
Other current assets |
11,00,000 |
|
Current liabilities |
4,00,000 |
|
Paid up share capital |
6,00,000 |
|
6% Debentures |
3,00,000 |
|
9% Loan |
1,00,000 |
|
Debentures Redemption Reserve |
2,00,000 |
|
Closing Stock |
1,00,000 |
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Shiv Ltd. was registered with an authorised capital of ₹ 9,00,000 divided into equity shares of ₹ 10 each. The company issued a prospectus inviting applications for issuing 80,000 equity shares. The company received applications for 79,000 equity shares. All calls were made and duly received except the second and final call of ₹ 3 per share on 4,000 shares held by Anu. These shares forfeited.
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