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Question
Better Prospect Ltd. acquired land costing ₹ 1,00,000 and in payment allotted 1,000 Equity Shares of ₹ 100 each as fully paid. Further, the company issued 4,000 Equity Shares to public . The shares were payable as: ₹ 30 on application ; ₹ 30 on allotment; ₹ 40 on first and final call.
Applications were received for all shares which were allotted . All the money was received except the call on 200 shares.
Pass journal entries and prepare Balance Sheet of the company.
Solution
Issued to public payable as:
|
Rs |
30 |
on application |
|
Rs |
30 |
on allotment |
|
Rs |
40 |
first and final call |
|
Rs |
100 |
Called-up |
Books of Better Prospect Ltd.
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
Land A/c |
Dr. |
|
1,00,000 |
|
|
|
To Vendor |
|
|
1,00,000 |
|
|
|
(Land purchased from the vendor) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vendor |
Dr. |
|
1,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
1,00,000 |
|
|
|
(1,000 equity of Rs 100 each issued to Vendor) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,20,000 |
|
|
|
To Equity Share Application A/c |
|
|
1,20,000 |
|
|
|
(Share Application money received for 4,000 equity shares at Rs 30 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
|
1,20,000 |
|
|
|
|
To Equity Share Capital |
Dr. |
|
|
1,20,000 |
|
|
(Share Application money of 4,000 shares transferred to Equity Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c |
Dr. |
|
1,20,000 |
|
|
|
To Equity Share Capital A/c |
|
|
1,20,000 |
|
|
|
(Share allotment due on 4,000 equity shares of Rs 30 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,20,000 |
|
|
|
To Share Allotment A/c |
|
|
1,20,000 |
|
|
|
(Share allotment received for 4,000 shares at Rs 30 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share First and Final Call A/c |
Dr. |
|
1,60,000 |
|
|
|
To Equity Share Capital A/c |
|
|
1,60,000 |
|
|
|
(First and final call due on 4,000 equity shares at 40 per share) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,52,000 |
|
|
|
Calls-in-Arrears A/c |
Dr. |
|
8,000 |
|
|
|
To Share First and Final Call A/c |
|
|
1,60,000 |
|
|
|
(First and final call received from 3,800 shares and 200 share failed to pay it) |
|
|
|
|
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
Better Prospect Ltd.
Balance Sheet
|
Particulars |
Note No. |
Amount (Rs) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
4,92,000 |
|
2. Non-Current Liabilities |
|
|
|
3. Current Liabilities |
|
|
|
Total |
|
4,92,000 |
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
a. Fixed Assets |
|
|
|
i. Tangible Assets |
2 |
1,00,000 |
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
3 |
3,92,000 |
|
Total |
|
4,92,000 |
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
Amount (Rs) |
|
|
1 |
Share Capital |
|
|
|
|
Authorised Share Capital |
|
|
|
|
…… shares of Rs 100 each |
-- |
|
|
|
Issued Share Capital |
|
|
|
|
5,000 shares of Rs 100 each |
5,00,000 |
|
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
|
1,000 shares of Rs 100 each (for consideration other than cash) |
1,00,000 |
|
|
|
4,000 shares of Rs 100 each |
4,00,000 |
|
|
|
Less: Calls-in-Arrears |
(8,000) |
4,92,000 |
|
2 |
Tangible Assets |
|
|
|
Land |
1,00,000 |
||
|
3 |
Cash and Cash Equivalents |
|
|
|
|
Cash at Bank |
3,92,000 |
|
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