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Question
Bharat Ltd. was incorporated with a capital of ₹ 2,00,000 divided into shares of ₹ 10 each. 2,000 shares were offered for subscription and out of these, 1,800 shares were applied for and allotted. ₹ 3 per share (including ₹ 1 premium) was payable on application, ₹ 4 per share (including ₹ 1 premium) on allotment, ₹ 2 per share on first call and ₹ 3 per share on final call. All the money was received. Give necessary Journal entries and show share capital in the Balance Sheet.
Solution
Authorised Capital 20,000 shares of ₹ 10 each
Issued Capital 2,000 shares
Applied 1,800 shares
|
Payable as: |
|
|
|
|
Application |
₹ |
3 |
(2+1) |
|
Allotment |
₹ |
4 |
(3+1) |
|
First Call |
₹ |
2 |
|
|
Final Call |
₹ |
3 |
|
|
|
|
12 |
(10+2) |
Books of Bharat Limited
Journal
|
Date |
Particulars |
L.F. |
Debit |
Credit |
||
|
|
Bank A/c |
Dr. |
|
5,400 |
|
|
|
|
To Share Application A/c |
|
|
5,400 |
||
|
|
(Application money received for 1,800 shares at Rs 3 per shares) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share Application A/c |
Dr. |
|
5,400 |
|
|
|
|
To Share Capital A/c |
|
|
3,600 |
||
|
|
To Securities Premium A/c |
|
|
1,800 |
||
|
|
(Application money of 1,800 share transferred to Share Capital at Rs 2 per share and Securities Premium Re 1 per share) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share Allotment A/c |
Dr. |
|
7,200 |
|
|
|
|
To Share Capital A/c |
|
|
5,400 |
||
|
|
To Securities Premium A/c |
|
|
1,800 |
||
|
|
(Share allotment due on 1,800 shares at Rs 4 per share including Re 1 securities premium) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Bank A/c |
Dr. |
|
7,200 |
|
|
|
|
To Share Allotment A/c |
|
|
7,200 |
||
|
|
(Share Allotment money received) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share First Call A/c |
Dr. |
|
3,600 |
|
|
|
|
To Share Capital A/c |
|
|
3,600 |
||
|
|
(Share first call due on 1,800 shares at Rs 2 per shares) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Bank A/c |
Dr. |
|
3,600 |
|
|
|
|
To Share First Call A/c |
|
|
3,600 |
||
|
|
(Share first call money received) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share Final Call A/c |
Dr. |
|
5,400 |
|
|
|
|
To Share Capital A/c |
|
|
5,400 |
||
|
|
(Share final call due on 1,800 shares at Rs 3 per share) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Bank A/c |
|
5,400 |
|
||
|
|
To Share Final Call A/c |
Dr. |
|
|
5,400 |
|
|
|
(Share final call money received) |
|
|
|
||
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
Bharat Limited
An extract of Balance Sheet
|
Particulars |
Note No. |
Amount (₹) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
18,000 |
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
Amount (₹) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
20,000 shares of Rs 10 each |
2,00,000 |
|
|
Issued Share Capital |
|
|
|
2,000 shares of Rs 10 each |
20,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
1,800 shares of Rs 10 each |
18,000 |
APPEARS IN
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